Author Archives: just2bruce

Trucking key issues in 2021

One of my favorite sources for information about trucking and truck drivers is ATRI, the American Transportation Research Institute. It’s a nonprofit with board members from every aspect of the trucking industry.

Each year they publish a report on the top industry issues for the year. It’s based on surveys. You can get it here. https://truckingresearch.org/atri-research/top-industry-issues/

It is always interesting reading. This year issues related to driver retention rose to the top of the list. We can see that at a glance by inspecting Figure 1, from page 4 of the report. The top 3 deal with the driver crisis in trucking.

One of the most interesting aspects of the report is a comparison between the attitudes of commercial drivers and those of motor carriers. The two groups have very different concerns, which are telling. The gap in concerns may represent why drivers are leaving the trucking workforce. I’m including Table 2 from the report below, which clearly portrays those different views.

Drivers are very concerned about compensation, truck parking, and delays at customer facilities, all of which affect their bottom line directly. Motor Carriers are concerned about the driver shortage and retention; I have heard that about 90% of drivers leave their current job within the first two years.

It seems to me that motor carriers ought to think about how they might have an impact on the truck parking problem nationally, and the detention or delay problems. Those factors are influencing drivers to choose to leave the profession or to switch to a company that can offer something that improves those dimensions. Money isn’t the whole story, though there is certainly a need for truck driver compensation to improve; both sides understand that.

One important dimension of trucking that cannot be overlooked in the US is the division between Owner-Operators and Company Drivers. There are different factors at work for these two very different classes of drivers. The ATRI Survey brings that out clearly in Table 3 of the report.

Both groups rate Truck Parking high, because it affects scheduling breaks and their ability to earn by moving goods. A search for a parking spot is time not spent transporting the goods.

But as one would expect, Owner-Operators are concerned about fuel prices, because they pay that themselves out of their piece-work fee for carrying the load. Company drivers do not have to pay for fuel themselves; it’s a company expense, and not money directly out of their pocket.

Compensation, whether by wages or by per-load fees, is a major issue for both groups.

I want to give a shout-out to ATRI for their diligence in producing this study each year. It’s a valuable resource for understanding the state of the trucking industry and gives us info that can drive our thinking about how its individual participants need to change.

New fees for lingering containers at LA/Long Beach Ports

To get the attention of shippers and carriers, the Port of Long Beach and the Port of Los Angeles have instituted escalating fees for containers that are not picked up at the port. The fines start at $100 per day and go up with each following day.

These fees have been endorsed by the US Supply Chain Disruptions Task Force.

There are lots of efforts to try to give ocean carriers and shippers incentives to move cargo out. Railroads UP and BNSF also are planning to offer rebates to shippers who move cargo to them on weekends, using the longer time windows at the ports. The large rails are also taking other steps to improve flow. UP is reopening an idled rail terminal in the Chicago area, near the Centerpoint logistics complex. The refunds apply to containers in-gated at the ICTF (Intermodal Container Transfer Facility) in Long Beach CA. BNSF’s rebates apply both to LA and Long Beach.

We’ve also heard about California Governor Gavin Newsom’s efforts to find space to store containers, by leasing empty land near key transfer points.

Naturally, there are complaints about fees, which will surely be passed on to consumers. And many point to the general logjams for containers at warehouses and other choke points in supply chains. Dispersed bottlenecks are harder to do anything direct about; perhaps a money impact is the best way to get these diverse players to work harder to relieve the jam-ups.

And there’s a bit of contradiction, with the FMC looking into excessive demurrage and detention fees at port terminals, a long-standing gripe of shippers, while watching two ports add to those burdens.

Yet, there is some action. So the complaining is good, and a variety of approaches makes it more likely that the logjam will start to abate as more folks speed things up all over.

Read the articles for more details and different views.

Eric Kulisch, Air Cargo Editor Wednesday, October 27, 2021

Joanna Marsh Tuesday, October 26, 2021

Shippers Find New Supply-Chain Hurdles at Alternate Ports

This article shows that it isn’t so easy to divert containers from LA/LongBeach to other ports. The smaller ports don’t have the infrastructure to handle the added containers efficiently. They may not even be able to get drivers to move the incoming containers. And how will they handle empties? Ship them to LA/Long Beach? It’s a complete mess for shippers and forwarders.

The article details some of the techniques people are trying. Each has its own set of problems to wrestle with.

By Paul Berger Oct. 24, 2021 8:00 am ET

Shippers Find New Supply-Chain Hurdles at Alternate Ports – WSJ