Ken Kellaway, President and CEO, RoadOne IntermodaLogistics

https://www.roadone.com
Author picture

Ken Kellaway

As market and infrastructure obstacles to attracting and keeping intermodal drivers continue to grow, I sound the alarm for necessary improvements that will keep this critical supply chain link viable. This is critically important to our industry and our customers’ business. Here are some of the obstacles that we need to address so sustainable solutions can be developed.

Regulations

In recent years, endless regulations have been imposed. Many of these changes are important to highway safety, but their impact can be significant on capacity. Hours-of-service rules are estimated to have resulted in a reduction in capacity of 5 percent, and 20 percent fewer applicants. The next big item will be the FMCSA’s recent regulatory change requiring ELDs (electronic logging devices). Although it doesn’t go into effect until 2017, many industry leaders are already implementing solutions and are seeing a decline in capacity as a result.

Port and terminal efficiency

Long, drawn-out processes, at certain ports, are significantly impacting drivers. Oftentimes, the job of picking up a container can take up to six hours. In addition, big ships cause volume spikes, straining the system. The result of this long, extended process can result in up to a 30 percent capacity reduction. The industry needs extended gate hours at all major ports so drivers and customers can adjust their schedules to benefit from this systemic change.

Attracting drivers to intermodal

Other factors weighing down the appeal of intermodal for drivers are stagnant pay levels and classification issues. Also, with an increase in demand for drivers from new sectors, such as Uber and last-mile delivery, it’s increasingly difficult to attract drivers. The American Trucking Associations estimates the driver shortage will exceed 175,000 by 2024. We need to make this an attractive sector. To accomplish this, we need to create an environment of respect, results and rewards for all parties that help drive success. Every link is essential.

Ken Kellaway, President and CEO, RoadOne IntermodaLogistics