The intermodal network was tested in 2015. The year began with disruptions at U.S. West Coast ports. Larger ships and mega-alliances also challenged operations on both coasts, leading to chassis imbalances and relocations as well as long queues for intermodal draymen. This, in turn, impacted the railroads’ inland movement of cargo. A new spirit of collaboration and cooperation between intermodal stakeholders is critical as we head into 2016.
Fortunately, we have strong examples that we can build upon. Cooperative agreements between ports on the West Coast are addressing congestion head on. The San Pedro Bay ports have implemented a “pool-of-pools” model for chassis provisioning and are working on a truck appointment system that will integrate the technologies of 10 different marine terminals. On the East Coast, the Port Authority of New York and New Jersey is taking steps to establish its own chassis pool by bringing together equipment providers, shippers, terminal operators and truckers.
Railroads are also taking the necessary steps to ensure the fluidity of the intermodal supply chain. More than $20 billion was invested in capital improvements during 2015 with more to come in 2016. This money went into infrastructure, technologies and equipment. Results included smoother cargo flows, improved train speeds, reduced terminal dwell time and creation of the linkages needed to handle the higher volume of cargo discharged by larger ships.
And not to be forgotten are the critical “first” and “last” mile providers in the supply chain — intermodal truckers. Various initiatives to improve driver productivity are underway and will be continued in 2016. Collaboration on improving the quality of equipment and standardizing and coordinating the electronic communications to truckers will reduce the amount of time a driver has to spend at an intermodal facility. Other efforts are directed at improving the treatment of drivers and increasing their compensation.