The problems at cargo hubs—whether seaports, airports or intermodal rail transfer facilities—often parallel each other and underscore the need for a national conversation among supply chain stakeholders to apply local lessons in a more systematic way where possible.
Take away the names and one might not be able to distinguish from the problems at O’Hare and the Port of Long Beach.
Large container ports have seen volumes swell as the economy improves, with cargo coming in waves as carriers opt to run bigger ships at less frequent intervals.
Port truckers in many cases are experiencing turn-times of several hours. Long lines are the result of multiple factors, including terminals not ordering enough longshoremen to operate truck transfer zones, the random nature of truck arrivals and many truckers showing up together at popular times of the day without any sort of metering.
Marine terminals tend to measure truck turn-times from the moment a truck registers at the gate rather than the total time sitting in a backup.
Many ports are in the process of implementing or considering some version of appointment systems to get better control of the truck flows. But there is also wide recognition that better real-time information exchange is necessary between ocean carriers, terminals, truck dispatchers, truck drivers, railroads and shippers so that resources can be marshaled at the correct time and wait times can be minimized.
Port trucking companies are losing drivers who are paid by the trip and, in many cases, are unable to make more than one or two trips a day. Some carriers have begun to add a wait-time surcharge to the shipper’s invoice.
Inadequate infrastructure is also contributing to cargo friction at both seaports and airports. Many terminals aren’t optimized with the right equipment or technology to efficiently handle the extra cargo, or don’t have the physical space to store containers.
Outdated processes are still being used to track cargo and transfer it to trucks and railroads.
There is no one-size-fits-all solution for port or airport productivity because each location has unique circumstances, but some best practices can be adapted for multiple sites, especially when it comes to sharing data among supply chain partners.
This article was published in the September 2015 issue of American Shipper.
