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Home/News/Business/Supply Chains/How fast can LA clear out its ships?
American ShipperMaritimeNewsRailSupply ChainsTop StoriesTrucking


HOW FAST CAN LA CLEAR OUT ITS SHIPS?


PRESSURE ON 24/7 STRATEGY MOUNTS AS 25 MORE CONTAINER SHIPS GET SET TO ARRIVE AT
SAN PEDRO BAY ANCHORAGE

John Gallagher, Washington Correspondent Follow on Twitter Thursday, October 14,
2021
4 minutes read
Faster vessel unloading won’t happen until trucks, rail coordinate. (Photo: Port
of Los Angeles)

Now that the ports of Los Angeles and Long Beach have moved to 24/7 operations,
pressure is mounting to reduce the backlog of ships at anchor in San Pedro Bay.

But more coordination will be required among the links in the Southern
California supply chain before that can happen. And with 25 more container ships
filled with holiday inventory from Asia scheduled to anchor within the next
three days, results have to come fast.

As part of the ports’ new 24/7 operating plan, instead of waiting for cargo
owners to pick up their cargo when they are ready – a “pull system” – the ports
are using a “push system” to identify cargo owners and get commitments from them
to pick up their containers.

“It also means getting commitments from the liner shipping companies to have an
equal number of exports and empty containers returned to give truckers the
round-trip economics they need and reduce gate turn times,” said Port of Los
Angeles Executive Director Gene Seroka at a press conference on Thursday.

“In effect, if we can continue to push out this cargo like we’ve shown in early
days with our rail partners on the trucking side, that will give us more room on
the terminal to bring in these ships even quicker.”

Seroka would not give a forecast as to when the current number of ships at
anchor – 62 on Thursday, compared to a record-high  73 last month – will be
reduced to the normal handful. However, he noted that import volume may plateau
after the Thanksgiving holiday, providing an opportunity to make a dent in the
backlog.



“Most retailers are telling me that following the [early February] Lunar New
Year holiday [in China], we’ll see the second quarter of 2022 focused on
replenishment of inventory at the store and distribution facilities level,” he
said. “It’s incumbent upon us to squeeze every minute and hour of productivity
out. The more cargo we can get out the gates via truck and rail leaves more room
to get that next ship in. Our goal continues to be to chip down at that number
of container ships at anchor every day.”


PORT TRUCKERS STRUGGLING

Many of the 18,000 truck drivers who haul the containers in and out of the ports
and adjacent container yards are not yet convinced of the potential of the
ports’ 24/7 push system. Commenting on the plan at the Port of Los Angeles,
announced on Wednesday by President Biden, the Harbor Trucking Association,
which represents drayage truckers, said alleviating the congestion and reducing
ship backlogs will not be accomplished merely by moving to 24/7 operations.

“It should be noted that thousands of empty containers sitting in motor carrier
yards on top of chassis are unable to be returned into the port complex because
of overly restrictive appointment requirements,” the association said in a
statement on Wednesday.

“For instance, if truckers can’t secure an appointment to return an empty
container, they can’t free up the chassis to move an import off dock, so those
appointments go unused. Furthermore, if truckers cannot count on consistent
skilled staffing levels during the second half of the second shift on top of the
empty return restrictions, those appointments go unused.”

Todd Spencer, president and CEO of the Owner-Operator Independent Drivers
Association, said truckers have already been operating around the clock “but are
often restricted by factors beyond their control, such as excessive detention
time and the lack of readily available, safe parking for their trucks.”  

“These problems must finally be addressed if the administration hopes to
implement any significant supply chain solutions. It’s not realistic to expect
the supply chain will suddenly operate efficiently on a 24/7 schedule when
drivers aren’t being fully paid for their time.”




MAJOR EXPORT LAG

Despite the backlog of ships waiting to get into the port with overseas imports,
the port recorded its best September in its 114-year history, Seroka confirmed,
with total container volume of approximately 900,000 TEUs driven by high
consumer demand.

At the same time, however, exports at the port were at record lows. Outbound
loaded containers at the port fell to 76,000 TEUs, a 42% drop compared to last
year and the lowest since 2002. The ratio of imports to exports came in at a
high of 6:1, the widest monthly gap recorded at the port. 

“This is obviously an area of great concern, and we’ve talked about this at the
federal state and local level,” Seroka said. “We have to create policy and
incentives to get our American exporters back in the game.”


ROLLING OUT 24/7 NATIONWIDE

John Porcari, who is coordinating the move to 24/7 operations as port envoy to
Biden’s Supply Chain Disruptions Task Force, said that getting major big-box
retailers to commit to 24/7 operations for at least the next 90 days represents
the other half of the solution to clearing out the ports. He believes the change
represents a “nationwide” opportunity.

“It’s been clear over the last couple of weeks that as a nation, we have to move
to a 24/7 supply chain,” Porcari said during the press conference. “The ports of
Los Angeles and Long Beach are doing it at their end, cargo owners are doing it
at theirs, and now need to energize the rest of the system.”

One of the keys to accomplishing that goal, he said, is secure data sharing –
something that has so far eluded the industry.



“In private discussions with CEOs throughout the supply chain, they admit we
need better, more transparent data on a national basis,” Porcari said. “You
can’t fix what you can’t measure, and we need to move toward that. The guiding
principles of an open-architecture system of transparency, real time data, and
protecting proprietary data can all be achieved.”

RELATED ARTICLES:

 * Walmart boosting off-peak container processing in LA by up to 50%
 * Biden administration pushing shippers, carriers to expand operating hours
 * Record shattered: 73 container ships stuck waiting off California

Click for more FreightWaves articles by John Gallagher.

Tags
Biden Administration Gene Seroka Harbor Trucking Association John Porcari
Owner-Operator Independent Drivers Association port congestion Port of Long
Beach Port of Los Angeles Supply Chain Disruptions Task Force U.S. container
exports U.S. container trades
John Gallagher, Washington Correspondent Follow on Twitter Thursday, October 14,
2021
4 minutes read

Facebook Twitter LinkedIn Reddit Share via Email


JOHN GALLAGHER, WASHINGTON CORRESPONDENT

Based in Washington, D.C., John specializes in regulation and legislation
affecting all sectors of freight transportation. He has covered rail, trucking
and maritime issues since 1993 for a variety of publications based in the U.S.
and the U.K. John began business reporting in 1993 at Broadcasting & Cable
Magazine. He graduated from Florida State University majoring in English and
business.
 * Twitter




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Tuesday, November 16, 2021


5 COMMENTS

 1. Jason Gurbal says:
    Friday, October 15, 2021 at 7:45 am
    
    Emodal is more of a problem than part of the solution. The system now is too
    rigid and inflexible. If i miss an appt or miss a pull becsuse of port
    congestion. The next appt might be 2-3 days or a week later because the
    appts are container specific rather than any eligible one that i am named
    the preferred trucker on.
    
    Reply
    1. i says:
       Monday, October 18, 2021 at 8:52 pm
       
       How many ships can the port unload in 24 hours if everything is working
       right. This article fails to ask and answer the question. if someone
       would answer this we would know exactly when this could end.
       
       Reply
       
    
 2. tom wilson says:
    Friday, October 15, 2021 at 10:28 am
    
    I have yet to get a satisfactory answer to the question of why I cannot
    pickup my container at a rail terminal yard – UP4 in Chicago for instance –
    with my own equipment?
    
    Reply
    
 3. Richard M Rehmer says:
    Friday, October 15, 2021 at 2:56 pm
    
    It isn’t just in California it is in every port that container ships come
    into, in rail yards across the nation there simply is too much bureaucracy
    involved, a lack of container trailers and lack of trucks to move the
    surplus freight plus they don’t want to pay us enough to do it, fuel prices
    are killing us, the lack of people to unload and reload, the list goes on.
    Then there are the lines at the port, as the gentleman said miss your
    appointment time your stuck with a container till they reschedule you. Get
    rid of all the red tape, and so on next it is going to be vaccine mandates
    for us, you want your goods, then ease up a bit, the 24/7 nonsense is only
    as good a HOS rules you can’t drive 24/7 if there are no qualified people to
    drive the truck when one driver get to the limit allowed, then the truck
    sits for 10 hours. There is no real answer to this shortage that is feasible
    in my eyes
    
    Reply
    
 4. Gunny HiWay says:
    Sunday, October 17, 2021 at 4:08 am
    
    I am not in transportation and you men and women are HEROS!
    I am deeply sorry that our “representatives” nationwide have let you down
    and demonized you as well.
    They have made your service to this nation intolerable and they do not seem
    to care one iota.
    We cannot “vote our way out of this” as the elections are clearly faulty if
    not rigged altogether.
    I cannot believe that Newsom was re-elected and that Biden actually got more
    than 20 million real votes.
    Now…We get the insane VAX mandates that I will never comply with even if
    they start to deny SSI/Disability payments as they probably will try to do.
    Take care,
    Gunny
    #GardasilKilledJessica ~ 12/16/1993-12/24/2013
    
    Reply
    


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April 2015  (282) March 2015  (267) February 2015  (223) January 2015  (218)
December 2014  (215) November 2014  (181) October 2014  (260) September 2014
 (215) August 2014  (225) July 2014  (272) June 2014  (232) May 2014  (242)
April 2014  (255) March 2014  (241) February 2014  (242) January 2014  (294)
December 2013  (253) November 2013  (237) October 2013  (290) September 2013
 (272) August 2013  (310) July 2013  (284) June 2013  (277) May 2013  (305)
April 2013  (321) March 2013  (328) February 2013  (333) January 2013  (325)
December 2012  (317) November 2012  (317) October 2012  (334) September 2012
 (315) August 2012  (342) July 2012  (290) June 2012  (284) May 2012  (354)
April 2012  (337) March 2012  (353) February 2012  (377) January 2012  (344)
December 2011  (287) November 2011  (263) October 2011  (318) September 2011
 (332) August 2011  (294) July 2011  (239) June 2011  (235) May 2011  (312)
April 2011  (302) March 2011  (322) February 2011  (276) January 2011  (266)
December 2010  (280) November 2010  (296) October 2010  (327) September 2010
 (297) August 2010  (325) July 2010  (302) June 2010  (294) May 2010  (265)
April 2010  (293) March 2010  (301) February 2010  (238) January 2010  (283)
December 2009  (269) November 2009  (242) October 2009  (252) September 2009
 (267) August 2009  (300) July 2009  (358) June 2009  (298) May 2009  (303)
April 2009  (321) March 2009  (332) February 2009  (300) January 2009  (356)
December 2008  (280) November 2008  (349) October 2008  (333) September 2008
 (384) August 2008  (390) July 2008  (358) June 2008  (406) May 2008  (367)
April 2008  (449) March 2008  (463) February 2008  (441) January 2008  (498)
December 2007  (489) November 2007  (482) October 2007  (523) September 2007
 (527) August 2007  (548) July 2007  (629) June 2007  (536) May 2007  (560)
April 2007  (635) March 2007  (612) February 2007  (528) January 2007  (497)
December 2006  (440) November 2006  (370) October 2006  (478) September 2006
 (340) August 2006  (377) July 2006  (432) June 2006  (379) May 2006  (320)
April 2006  (354) March 2006  (391) February 2006  (303) January 2006  (345)
December 2005  (281) November 2005  (361) October 2005  (316) September 2005
 (350) August 2005  (354) July 2005  (279) June 2005  (316) May 2005  (276)
April 2005  (349) March 2005  (349) February 2005  (313) January 2005  (382)
December 2004  (280) November 2004  (272) October 2004  (260) September 2004
 (262) August 2004  (220) July 2004  (243) June 2004  (284) May 2004  (229)
April 2004  (278) March 2004  (304) February 2004  (309) January 2004  (312)
December 2003  (329) November 2003  (284) October 2003  (312) September 2003
 (333) August 2003  (53) July 2003  (130) June 2003  (1) May 2003  (166) April
2003  (296) March 2003  (340) February 2003  (327) January 2003  (333) December
2002  (252) November 2002  (252) October 2002  (304) September 2002  (282)
August 2002  (292) July 2002  (313) June 2002  (268) May 2002  (283) April 2002
 (294) March 2002  (274) February 2002  (201) January 2002  (251) December 2001
 (195) November 2001  (290) October 2001  (340) September 2001  (250) August
2001  (258) July 2001  (314) June 2001  (291) May 2001  (290) April 2001  (283)
March 2001  (288) February 2001  (236) January 2001  (269) December 2000  (173)
November 2000  (204) October 2000  (252) September 2000  (243) August 2000
 (223) July 2000  (203) June 2000  (207) May 2000  (228) April 2000  (191) March
2000  (232) February 2000  (233) January 2000  (176) December 1999  (181)
November 1999  (187) October 1999  (199) September 1999  (205) August 1999
 (191) July 1999  (150) June 1999  (185) May 1999  (149) April 1999  (132) March
1999  (103) February 1999  (43) January 1999  (1)

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