When it comes to port selection, it might be said that cargo moves the carrier. Savvy shippers must use every tool at their disposal to continually monitor and evaluate how cargo moves through their international gateway ports. As U.S. trade volumes recover, the demands placed on all U.S gateways may again tax their throughput velocity. Understanding the roles played by ocean terminals, rail terminals and the port authority or harbor department can significantly help keep your shipments moving through difficult situations. Knowing the right questions to ask may not be quite as important as knowing whom to ask, and this may differ significantly from port to port.
The following points will give you some insight into getting the most out of your chosen gateways.
1. Landlord vs. Operating Port. It has been said before but bears repeating: Not all ports operate the same way. Before a dispute arises, cargo owners need to understand clearly which entity they should be negotiating with. A landlord, or non-operating port, leases terminal space to an independent operator who in turn hires the labor and operates the facility independently. While the port may maintain a general tariff governing specific fees and container dwell times, the terminal operator and/or carrier sets the rules governing collection of fees and the allowable free time per container. Operating ports take an active role in all phases of management, procedure and the collection of cargo-specific fees. 2. Getting Out the Gate. Know how your carrier terminals operate with respect to gate hours. Gate hours vary from terminal to terminal and are usually set irrespective of surrounding facilities. This rule of thumb applies to most ports, but there are exceptions. In Southern California, for example, the terminals have collectively agreed to hours under the PierPass program, which standardizes pickup and delivery times for all terminals in Los Angeles and Long Beach. 3. Gate Fees and Terminal Charges. Cargo fees are usually collected by the carrier and terminal operator, but may be governed by the facility, the port or an outside agency. Demurrage and detention charges are carrier and terminal fees and should be negotiated with the respective body. Daytime pickup charges such as those in PierPass are collected by an independent agency and must be resolved there. 4. On-Dock vs. Off-Dock Rail. Many ports have a combination of on-dock, cross-dock and off-dock rail facilities. Ocean carriers will utilize all facilities at their disposal based on factors such as direct or third-party rail contracts, availability of space and cargo destination. Key destinations will likely be served by on-dock rail, but this is not always possible if space prohibits building additional unit trains on-dock. Off-dock facilities necessitate additional drayage and may require a gate appointment to position your container at the railhead. Look at the rail facilities offered within a port complex. Recognize which types are available to each terminal and ask your ocean carriers about how they utilize those facilities. Learn more about which regional rail carriers offer the best service to specific rail ramps, and don’t generalize about rail performance by each ocean carrier. 5. IPI vs. RIPI. With the emergence of rapid all-water services, there are many inland destinations that might be reached by Reverse Interior Point Intermodal Service (RIPI). Keep in mind, however, that the greater the distance inland, the longer it will take when added to all-water transit. The Eastern Class 1 railroads have become aggressive in promoting and handling destinations in the Ohio Valley and even into Chicago. But West Coast gateways still have an advantage when serving destinations in the central and eastern Midwest. Talk to your carrier’s intermodal department and ask the experts how they would route your freight between gateway and ramp. Don’t assume distance is the sole governing factor. Various rail routes have different transit times, and you need to make intelligent choices when it comes to container on-carriage. 6. Access to Road Infrastructure. Operating and landlord ports often implement work projects to improve truck access to their terminals. The smart cargo owner will attend seminars given by port marketing departments that highlight infrastructure projects and how they affect goods movement. Ask questions and try to get a congestion assessment before, during and after project work is undertaken. 7. Special-Use Corridors. Some ports have special-use corridors that can assist the movement of project cargo, heavyweight containers or specialized equipment such as refrigerated goods. Know what is available at your gateway and how to best utilize these corridors. 8. Available Transport Services. The marketing department of your primary port gateways generally has a wealth of knowledge on what services are available in and around their terminals. This may range from cold storage or specialized warehousing to trans-loading and domestic transfer services. Utilize this valuable resource. 9. Get to Know Regional and National Trade and Transport Associations. It is highly recommended to join trade and transportation associations. These groups monitor activity at U.S. ports providing valuable information regarding many of the issues discussed here, offering insight to their membership on contracts, customs and congestion. Many regional associations host port nights or seminars, bringing staff from several ports together to discuss key issues. 10. Do Your Homework. When it comes to choosing and working with your international gateways, do your homework. Most cargo owners tend to leave all the important details to their carriers or forwarders. Best practices include getting to know the customer service and management staff at the terminals. In larger ports, this will often include a number of facilities. You rely on your ocean carriers to provide their best service in terms of rates and transit time to the port, but unless your cargo remains on the terminal, you must be familiar with how your cargo exits the port and what factors will impact moving it quickly to final destination. It’s your cargo, and it is your responsibility to manage it knowledgeably. JoC TENs essayist Matt Guasco is president of trade consultant INF Marketing and Logistics Inc. in Wantagh, N.Y., and represents the Port of Los Angeles and other maritime industry interests. He can be contacted at Guasco@optonline.net.