At the heart of every trade show are its exhibitors. Visitors come from around the country and sometimes across the world to attend large events, exhibitions, and trade shows featuring industry-leading companies, products, services, and educational opportunities.
To create memorable event experiences trade show attendees expect, hundreds, if not thousands, of exhibitors must ship materials to the event location and get their freight from the shipping dock to the show floor.
To ensure event booths are set up on time, and all of the individual exhibition materials make it to the right location on the trade show floor, show decorators (general service contractors) have developed a sophisticated system to manage the movement of these materials to where they need to go, with speed and accuracy. The cost associated with this system is referred to as drayage cost.
What Is Drayage In Trade Show Logistics?
Drayage, or material handling, is the round-trip fee exhibitors pay to have materials transported from the event’s shipping dock or advanced warehouse to their space on the trade show floor – and back to their freight carrier at the end of the event. Drayage fees are unavoidable when participating in large events and can add up to a third of the cost of show expenses.
However, planning ahead will minimize surprise charges and help control costs.
Here Are 9 Ways to Reduce and Control Drayage Costs
1. Learn How Drayage Is Calculated
The best way to control drayage costs is to understand how they are calculated and what has changed since the start of the pandemic. Today, there are two common ways drayage is calculated: the Per Hundred Weight (CWT) model and the Per Pound Model.
The CWT Model:
Drayage has historically been calculated at cost per 100 lbs., with a 2 CWT minimum charge (meaning each shipment is subject to a minimum weight charge of 200 lbs.). Using the CWT model, companies with five separate shipments to an event (under 100 lbs. each) are responsible for 1,000 lbs. (5 X 200 lbs. min.). But, if the shipments are consolidated and moved together as one, the total drayage cost is much less.
With the CWT model, special handling charges are separate and can increase the drayage costs up to 30%. Special handling charges often apply to shipments that require additional labor and handling, such as ground unloading, stacked or constricted space unloading, designated piece unloading, uncrated shipments, or loads mixed with pad-wrapped material.
It can also include shipments that require additional time, equipment, or labor to unload. Working with a trusted transportation provider can help minimize special handling charges.
Per Pound Model (Standard vs. Non-Standard):
Since the start of the pandemic, some show planners have moved to a standard vs. non-standard calculation for drayage rates (nearly 50%, according to a recent survey). Standard is the cost per pound when items (25+ lbs.) are shipped to an advance warehouse or the show site within a specific date range.
Non-standard is the cost when these items are shipped outside of the posted date range (i.e., early or late). The average rate is $1.88 per pound before the event’s discount deadline and $2.08 per pound after the deadline.
While this model has higher shipping rates, it eliminates extra charges for overtime, special handling, and uncrated surcharges.
Have an understanding of how your event is calculating drayage costs.
2. Meet Trade Show Shipping Deadlines
Each trade show has a specific window of time that exhibitors must hit at the advanced warehouse or show site. Identifying and meeting these requirements, which are printed in the show kit, reduces surcharges and fees and the overall cost of the show.
Missed deadlines can result in surcharges that increase drayage rates by up to 50%, and even worse, they can cause you to miss delivery and booth installation deadlines
3. Chose Lightweight Show Materials
To cut back on drayage and transportation costs, use lightweight exhibit and display materials. The cost to design new, lighter-weight booths and materials may be less than the shipping costs for your old, heavy ones. New materials are now available that offer a customized look and help minimize drayage costs.
4. Pack Efficiently Using Pallets and Crates
Review your packing plan to ensure you’re packing trade show materials in the most efficient manner possible prior to shipping.
When shipments are properly packaged, companies are typically charged the standard drayage rate in comparison to higher special handling rates. Consider over-packing items to protect them during transit.
In most cases, a crate is best. If you must use a shrink-wrapped skid, make sure it is wrapped tightly with reinforced corners, and make sure all of the boxes and shipment contents are within the edges of the pallet.
5. Note Your Shipment Count and Label Each Piece Clearly Before Shipping
Label each shipment piece with all of the important details required to ensure it arrives on time at the correct location. This includes the show name, booth name, and booth number. Clear shipment labeling helps avoid lost materials and special handling surcharges.
6. Weigh Each Piece Before Shipping and Complete the Bill of Lading
A description and the weight of each piece of the shipment should be included on the Bill of Lading (BOL). Drayage costs are based on the actual weight of the shipment, so clear and precise labeling reduces the potential for overestimation.
It is always in the best interest of the shipping party to properly weigh all freight and include it on the BOL. In most cases, the weight listed on the BOL is what show decorators use to determine drayage. In some cases, pieces may be re-weighed at the show site, or it may be estimated if there is no weight indicated. It’s best to reduce that risk.
A trusted shipping partner will weigh your freight and provide scale tickets for each shipment if necessary. You can use these to estimate drayage costs and review the accuracy of your final show invoice.
Please note, however, that not all carriers will weigh an exhibitor’s freight. Exhibitors should inquire with the carrier and request that service in the event they do not weigh freight themselves. Shippers should never assume a carrier will officially weigh their freight without specifically requesting this.
7. Complete the Material Handling Agreement (MHA) To Reduce the Chance of Forced Freight
Before you leave the show floor, ensure all paperwork is complete, and your freight carrier has been notified.
Shipments moving in or out of an event require a completed MHA from the exhibitor. The MHA informs the show decorator that you have prepared your exhibit materials for transport and alerted your carrier.
If the form is not complete, the decorator will not release your exhibit material to your carrier and may “force” your shipment. If a shipment is forced, your booth materials will likely be sent to its next destination using the designated show carrier, and you will be billed a rate that is much higher than what you would expect. This is often a huge markup.
8. Review Show Service Invoices at the End of the Event
In shows with hundreds (or thousands) of exhibitors, mistakes can happen. It’s important to review your preliminary invoice prior to leaving the show floor to ensure accuracy. Rentals on furniture and equipment, electrical work, and other charges are very costly at most shows. Auditing your bill at the show might catch an error or two worth hundreds, or even thousands of dollars.
Once you leave an event, it becomes more difficult to fix problems and negotiate changes to the invoice.
9. Partner with an Experienced Carrier
Exhibitors who attend multiple shows throughout the year rely on companies that specialize in trade show logistics to manage shipping, warehousing, and packaging. These companies have a team of trade show specialists who help clients customize their transportation strategy, making it more reliable and less expensive.
Trade show specialists understand there is no room for error when shipping materials to a large event and offer advanced customer service to support your trade show calendar throughout the year, every step of the way.
When the stakes are high, it’s important to have a trusted transportation partner by your side.