Insights - May 2016 - (Page 5)

Driver Turn Times Are a Supply Chain Issue A number of variables come into play in determining driver productivity at terminals. Comparing driver turn times at different facilities can be complicated by what's included in that calculation. Additionally, multiple factors from across the supply chain impact a driver's ability to move a container. The industry is in agreement, however, that boosting productivity improves the driver experience, reduces costs and can even help with driver retention. IANA has taken a very active role in setting up task forces to examine the underlying issues and to help address them as an industry. Volume At America's busiest container ports - Los Angeles and Long Beach - improvement in truck turn times in March was partly attributed to seasonal volume declines related to the Chinese New Year. As volumes return, and even into peak shipping seasons, turn times are expected to increase incrementally, but not dramatically. For other container ports, a developing volume issue may come in the form of a surge of business from the expanded Panama Canal and/or larger container ships. This translates to larger volumes in shorter periods than the ports may have dealt with in the past. In the interior of the country, the railroad container yards face similar problems when it comes to how well their infrastructure can handle volumes of imports and spikes from larger ships discharging containers at the ports, according to Glenn Fehribach, senior vice president at ContainerPort Group. He takes a macro view, adding to the equation the shipper/consignee. "The overall strength of the economy impacts this. When the economy is strong, shippers and receivers may work multiple shifts rather than just one shift," he says. When the economy is not as strong, they squeeze operating hours. "That puts more trucks on the road and at the facilities at the same time." More of the equipment inventory in the interior of the country is grounded, and that means the container yards see more density. The need to stack containers is higher which can spell more handling time. "This final-mile drayage component could be the weak link in the supply chain." - Ken Kellaway President and CEO, RoadOne As import volumes start to tick back up, we could be right back in the same situation we were in, suggests Ken Kellaway, president and CEO of RoadOne, referring to the congestion of recent years. He doesn't feel the issues have been systemically corrected. Kellaway sees it as good news that there is so much focus on driver turn times. "For the first time in my 30-year career, for the past 12 months we've talked more about task forces and focused on intermodal trade than we ever have." But, he continues, "The down side is the reason we've been talking about it so much is that there have been so many challenges that have developed that people are starting to realize that this final-mile drayage component could be the weak link in the supply chain." Systemic Changes As individual draymen, it's difficult to come to the table, Kellaway says, because the industry segment is highly fragmented. He points to over 5,000 players with an average size of about 20 trucks generating about $150,000 per truck. To have a voice, they rely on the work being done by IANA and the ATA. Meanwhile, large systemic changes have occurred at the steamship level and at the ports that have impacts all along the supply chain, Kellaway points out, mentioning larger ships and changes in chassis programs. Six to eight years ago, before all of this chassis transition started, Kellaway observes, containers were mounted, so the driver went to the terminal, picked up the load, and was ready to go - it was a two-touch system. "Today, drivers have to go to an off-site chassis pool in most instances, and those that aren't a gray pool are very complex because you need a specific chassis for a specific container, then they have to go through the gate, wait for a crane operator to dig the container out of a stack to make a live lift, then he has to go back to roadability and have the chassis and container reinspected on the way out, and then exit the terminal. "It's not just terminal fluidity, it's those extra touch points you have getting the chassis, waiting in line before you get to the gate, and then the entire cycle time in the terminal itself," explains Kellaway. Measurement "The primary issue that's ahead of us right now is defining exactly what a turn time is," says James Petit, manager of terminal operations at South Carolina Ports. "It's difficult to make a comparative analysis with different facilities that calculate turn times in different ways," he continues. Petit raises the question of when a turn time starts - is it when the driver passes through the gate and begins operational procedures through to exiting the facility, or does it involve more? At the Wando Welch Terminal, Petit explains, drivers enter through a Turn Times - continued on page 7 May 2016 | Intermodal Insights 5

Table of Contents for the Digital Edition of Insights - May 2016

Insights - May 2016
DOT Reports Size and Weight Study
IANA Comments on Freight Plan
Matt Rose to Address Intermodal EXPO 2016 Attendees
Silver Kingpin Award Selection Commences in June
UNF Hosts IANA Case Competition
Driver Turn Times are a Supply Chain Issue
Freight Reports
State Legislative Update
Sustainability News
Port News
People in the News
In Brief
2016 Sponsors
Welcome New Members
Intermodal Calendar

Insights - May 2016