Unusually high levels of congestion continued in December at the Port of Los Angeles and Port of Long Beach. The ongoing shortage of available chassis continued to slow port operations. This was compounded by reported shortages of skilled labor needed to operate various terminal equipment.
Marine terminal operators worked to reduce the backlogs of containers by running 72 additional gates (shifts open to truck traffic) during the month. The 72 additional gates were a 31% increase over the 233 OffPeak gates originally scheduled for December. The MTOs operated 73 additional gates in September, a 30% increase, 86 additional gates in October, a 33% increase, and 118 additional gates in November, a 55% increase.
The marine terminals at the Port of Los Angeles and Port of Long Beach continued to experience unusually high congestion during November, and responded by operating 55% more OffPeak truck gates than originally scheduled.
The largest cause of congestion over the past several months has been the shortage of available chassis. This has been compounded by shortages of available longshore labor and truck drivers.
Marine terminal operators (MTOs) continued to work additional shifts in November to alleviate congestion. MTOs operated 118 additional gates (shifts open to truck traffic) in November, a 55% increase over the 213 OffPeak gates originally scheduled for the month. The MTOs operated 73 additional gates in September, a 30% increase, and 86 additional gates in October, a 33% increase.
Marine Terminal Operators (MTOs) at the Ports of Los Angeles and Long Beach in November continued to work additional shifts to alleviate recent congestion. MTOs operated 118 additional gates (shifts open to truck traffic) in November, a 55% increase over the 213 OffPeak gates originally scheduled for the month.
The MTOs have been spending $3 million per week on additional and unbudgeted costs since September 1 to manage congestion. In addition to adding unscheduled gates and shifts, terminals have been working overtime and through lunch and breaks, and paying truckers to move containers between terminals to load on-dock trains.
LONG BEACH, Calif., November 17, 2014—PierPass Inc. executives have concluded meetings with the five Federal Maritime Commissioners (including Chairman Mario Cordero) and with FMC staff, briefing them on measures the marine terminal operator (MTO) members of PierPass are taking to address the current congestion issues in the Ports of Los Angeles and Long Beach. In a series of meetings late last week in Washington, D.C., PierPass also met with representatives from the National Retail Federation, the National Industrial Transportation League, the Waterfront Coalition, and the Agriculture Transportation Coalition to provide them with these updates.
PierPass President John Cushing on Friday published the following op-ed in the Journal of Commerce. The original article is available here.
Counting on Common Sense to Tackle Port Congestion
John Cushing, President of PierPass Inc. | Nov 07, 2014 12:03PM EST
The Ports of Los Angeles and Long Beach are experiencing the most serious congestion in years. While a broad range of factors have contributed to the situation, there is widespread agreement in the industry that the largest single problem right now is a shortage of available chassis. That problem and related ones are the focus of intensive activity by the ports, the terminal operators and other stakeholders in the supply chain.
Dear Users of OffPeak Gates,
As you may know, congestion at the Ports of Los Angeles and Long Beach has increased over the past several months amid disruptions in the supply of chassis and other factors. The marine terminal operators, while not owning chassis themselves, have been working with other key parties including chassis leasing companies to help mitigate the problems. The chassis disruptions have been compounded by ocean carrier alliances that are dispersing cargo among more terminals, the arrival of larger ships, a shortage of rail cars and locomotives, and the struggles of trucking companies to retain drivers.
PierPass Monthly Transaction Data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of September 2014.
Average in-terminal turn time:
- 52.1 minutes day shift
- 54.7 minutes night shift
For comparison, the average in-terminal turn time in August 2014 was 49.1 minutes for the day shift and 48.1 minutes for the night shift.
September was a particularly difficult month. Truck turn times increased due to cargo volumes increasing, chassis shortages, and rail availability causing cargo delays and an increase in the average in-terminal truck turn times.
LONG BEACH, Calif., September 17, 2014 – PierPass Inc. has named as its new president John Cushing, a veteran transportation industry executive and leader.
Mr. Cushing’s role gives him responsibility for PierPass programs to relieve congestion and improve air quality at the Ports of Los Angeles and Long Beach. Mr. Cushing takes over the role of president from Bruce Wargo, who has led PierPass since its founding in 2004 and remains CEO.
Mr. Cushing founded eModal in 1999 and served as its president through 2009. Under his leadership, eModal developed widely used online services to coordinate activities between marine terminals and trucking companies, beneficial cargo owners, and others in the supply chain. Mr. Cushing grew eModal into the nation’s largest port community system, used at 41 marine terminals in 14 ports on both U.S. coasts.
PierPass Monthly Transaction Data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of August 2014.
Average in-terminal turn time:
- 49.1 minutes day shift
- 48.1 minutes night shift
For comparison, the average in-terminal turn time in July 2014 was 48.7 minutes for the day shift and 49.2 minutes for the night shift.
In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors.
LONG BEACH, Calif., Sept. 11, 2014 – PierPass Inc. today launched the Free-Flow Program, testing a new cargo-handling process expected to significantly reduce the time it takes participating trucks to pick up containers at marine terminals.
Today’s random-access process – where any truck can show up at any time to pick up any container – hasn’t changed since containerization began in the early 1960’s. With new, larger ships unloading as many as 5,000 containers at a time, the random-access process is creating efficiency challenges at major ports around the world.