Drayage

Almost all shipping industry stakeholders agree that tariffs would raise costs across the transportation landscape, and eventually slow the movement of freight. So why are some US chassis makers asking for a tariff on imported chassis?

The issue of public money for a private function was raised, but the port noted that Southern California ports have various subsidy programs in place for environmental reasons, such as to encourage carriers to plug into shoreside electrical power to reduce emissions at berth.

The capacity challenges described here are not unique to railroad networks and terminals; they are persistent through the US supply chain. Further, while some solutions lie far in the future, there are several initiatives that could improve rail/intermodal service overnight.

The merits of owning a chassis vary, depending on individual business models, but there is one aspect of the electronic logging device mandate that provides an advantage for those truck drivers who are chassis-ready, for example via ownership.

In the United States’ tight surface capacity market, the operative phrase in supply chain management is “minimize the truck transport variable,” and Georgia’s new inland port, the Appalachian Regional Port, aims to do that, and more.

The latest tech upgrade at Jawaharlal Nehru Port Trust represents more good news for truck drivers.

Port Miami is making a statement. New cranes, a better truck gating system and transloading facilities, and access to Interstate 95 mean the port has the infrastructure for global trade. And Miami has one other tangible that many stakeholders in container shipping will notice. Certainly other ports will.

The concept of a single electronic platform for port users is gaining momentum with truckers, beneficial cargo owners (BCOs), and other port users, with GE Transportation’s Port Optimizer at the Port of Los Angeles and the Port of Long Beach achieving breakthroughs as a pacesetter.

These are relatively minor changes in destination terminals and don’t eliminate any existing service, although it will require some decisions on how to route cargo for the best price.

Backers of protectionist policies and home-source manufacturing have set their sights on the chassis, and if they get their way the net-effect would hurt shippers and trade in the United States.

In the midst of a volume uptrend, Montreal is the latest North American port to try extending its terminal gate hours to improve cargo fluidity in and out of the terminal, and to place a charge on containers to pay for it.

The electronic logging device (ELD) mandate did not cause a loss of drivers, but a loss of driving hours. Further, changes shippers made that were propelled by the ELD are likely to be lasting, even if exemption amendments for selected trucking segments are passed.

Stakeholder APM Terminals Mumbai informed parties of likely delays. “This stoppage of traffic will have an adverse impact on terminal gate movement and traffic around [the] port area,” APM Terminals stated in a trade advisory.

The E*Dray platform will enhance the ability of beneficial cargo owners and their truckers to aggregate containers into peel-off piles at the ports — and with the new system the potential is there for a substantial reduction in truck turn times.

The port of Halifax has three objectives in mind with its tech upgrades, and if the port is successful shippers and other trade stakeholders will benefit from all three.

APM Terminals is in the midst of a whirlwind trade outreach program, with the goal of attracting more customers to its recent ease-of-doing-business measures.

Anyone who drives through the Wando Welch Terminal in Charleston or Garden City Terminal in Savannah would quickly see that the room is there for chassis, if they were available.

Singapore's local drayage market has historically been highly disorganized and reliant on outdated modes of communication.

Growth at the Port of Baltimore is driving up truck turn times and forcing operational changes.

Chassis has been called the shipping industry’s conundrum, and with good reason. Providing a basic piece of equipment seems simple enough. Yet the issue has taxed US ports and railroad terminals for at least a decade, causing cargo disruptions, delays, and complaints about poor equipment. And as of mid-2018, the industry is still searching for the most efficient solution.

Supporters, including some smaller companies, believe the pool will encourage chassis providers to contribute new chassis with the safest features and increase fleet size. Opponents counter the existing pool works fine, and there are legal and operational questions that must be answered before rendering a decision.

A gray chassis pool is not off the agenda, stakeholders say, but as of mid-2018 it appears to be a solution in search of a problem, for several reasons.

It took the new management team at APL’s Pier 300 in Los Angeles only three months to improve truck turn times from the worst in the harbor to the fourth best among the 12 terminals. And they accomplished it by deploying a "customer focus/consumer focus" strategy.

The question shippers are asking is, “If you see the freight, can’t you let me know where there’s carrier capacity available?”

In the past, resourceful supply chain managers always had alternatives in their hip pocket to meet the unexpected, for a price. Not this year. In 2018, shippers should not expect surge freight capacity.

US beneficial cargo owners will face unprecedented challenges using intermodal this peak season. Still, there are time-tested tactics that will ensure the best possible transportation result.

Efficient supply chains contain the premise that for every container there is a chassis available. But don't tell shippers that, as the issue has been a thorn in their side and that of other container trade stakeholders for nearly a decade.

Although intermodal traffic has increased 26 percent in five years, chassis repair companies can’t hire people fast enough to keep pace, due to the US labor shortage, job hopping in the sector, and candidates simply seeking easier work. Shippers will ultimately see the problem in the form of chassis shortages.

The logistics provider has found a niche in Miami-area digital drayage by offering an app with a twist: the shipper, not an algorithm, names the price to haul the load.

Beneficial cargo owners and truckers in Southern California have experienced only spot chassis shortages, and given current import projections, this condition should continue through the peak season. However, store-door contracts that designate the use of specific intermodal equipment provider chassis are still an issue, and this condition could worsen if non-vessel operating common carriers expand their use of door contracts with chassis clauses.

Every year, during the April to October period, Chittagong Port experiences severe congestion, which causes a vessel backup at the outer anchorage lasting from several days to more than a week.

The two port authorities believe the pool will solve two chassis problems — eliminate the chassis shortage and provide the highest-quality chassis. But they also warn beneficial cargo owners that this won’t be an overnight fix.

Despite a container consolidation partnership among marine terminals, inland shipping companies, and inland centers, barge operators say there's been little improvement in reducing barge delays during peak times — something one intermodal services provider argued was due to not having enough handling capacity during peak times.

Chassis restrictions have long been a concern of beneficial cargo owners and truckers ever since the ocean carriers exited the business.

At a June 6 meeting in which 30 port stakeholders reviewed the impact of increasing the hours from beyond the old time of 6 a.m. to 2.30 p.m., to close instead at 7 p.m., the terminals agreed to extend the project, which began May 14 and was due to end on June 22, at least through the summer.

Shippers may find that the cost of operating a new chassis could be lower than that of an ostensibly cheaper refurbished or aging chassis over the long run, once fuel consumption and maintenance are taken into account.

Inland container depots (ICDs) are responsible for stuffing and unstuffing export and import containers on their premises. If Bangladesh does not add more ICDs, cargo delays and missed shipments are likely to increase at/near Chittagong Port.

DP World said the longer truck turn times are infrastructure upgrade-based, but truckers argue they are a reoccurring problem.

The transaction completed through RoadOne’s holding company — Bright Light Partners — will increase the company’s overall size to 1,600 drivers in 60 locations throughout the United States.

Non-vessel operating common carriers are signing exclusive deals with chassis providers, counting on these deals to offer shippers more reliable service at a lower cost. Truckers are worried that these restrictive contracts will increase chassis splits and shortages, which they consider a colossal waste of time.