Drayage plays a critical role in ensuring the timely movement of goods from the port to its destination. When the destination is a Foreign Trade Zone (FTZ), such as ours, that is close to a major port, you can save time and money.  

What is Port Drayage Service? 

Drayage service refers to the short-distance transportation of goods between a seaport (or port of entry) and nearby warehouses or distribution centers. The term “drayage” typically involves transporting containers by truck, and it’s an essential part of the logistics process, especially in international shipping.  

NEMA’s drayage services include:  

• Port-to-Warehouse Drayage: Moving goods from the port to our warehouse. 
• Cross-Docking: Direct transfer from one truck to another without storage, speeding up the trucking process. 

What is FTZ (Foreign-Trade Zone) Warehousing?  

A Foreign-Trade Zone (FTZ) is a designated area, usually near a port or airport, where goods can be imported, stored, and processed without being subject to U.S. customs duties and taxes until they enter the U.S. domestic market. NEMA maintains the only 3PL FTZ in Gwinnett County, Georgia, a location that allows easy access to the ports of Savannah and Charleston and keeps us free from mainline traffic.  

FTZs are typically used to:  

• Defer import duties: Companies can store goods in an FTZ without paying duties until they are brought into the U.S. market for consumption. 
• Reduce tariffs and taxes: If goods are re-exported from the FTZ without entering the domestic market, they are not subject to duties. 
• Streamline customs processes: FTZs provide easier customs clearance and more flexible handling of goods, which can reduce delays and improve overall supply chain efficiency. 
• Enhance operational flexibility: Businesses can manipulate, assemble, or manufacture products in FTZs without paying duties on non-U.S. components, making them highly attractive for businesses looking to optimize global supply chains. 

Combining Port Drayage with FTZ Warehousing Streamlines Your Supply Chain  

Integrating port drayage services with FTZ warehousing can offer several benefits, particularly when it comes to optimizing supply chain efficiency, reducing costs, and improving cash flow. Here are a few ways these logistics strategies can work together:  

∙ Duty Deferral and Cash Flow Improvement: When goods are moved from the port to our FTZ via port drayage, your business can defer the payment of customs duties until the goods are moved from the FTZ into the U.S. domestic market. This gives you more flexibility in terms of timing and helps improve cash flow by delaying the outlay of cash for duties.  

∙ Inventory Management and Last-Mile Delivery: By using FTZs in conjunction with port drayage, businesses can store goods nearby in our FTZ which is close to two major ports. This allows your company to access goods quickly and efficiently, improving inventory management and ensuring last-mile delivery for production or customers. 

∙ Streamlined Customs Clearance: Goods moving through port drayage to NEMA’s FTZ benefit from simplified customs processing since the goods are not subject to customs duties until they are withdrawn from the FTZ. This creates a smoother flow of goods into the country and reduces the administrative burden on your business.  

∙ Value-Added Services and Flexibility: By using our port drayage services and our FTZ facility, your business can combine customs duty deferral with operations that add value to the goods before they enter the U.S. market.  

∙ Optimized Supply Chain Costs: When you combine port drayage with FTZ warehousing, you can consolidate shipments, reduce transportation costs, and minimize bottlenecks in your supply chain. Additionally, you can mitigate the impact of fluctuating tariffs by making strategic decisions about where and when to pay customs duties.  

By integrating port drayage services with FTZ warehousing, your business can significantly streamline your supply chain, reduce costs, defer duties, and improve cash flow, which is especially important in today’s complex and dynamic global trade environment.  

Interested in learning more about how the knowledgeable team at NEMA Inc. can put these solutions to work for you? Contact us today and start the journey to a more efficient supply chain.