A nice article from Jan Hoffman of the IAME. Clearly it’s important to measure the costs, and how to do it is a big problem, given the fractionated international transport market. COVID-19 changes make it even more problematic, and then throw in Brexit.
JENNIFER BROWN DOMINIK ENGLERT JAN HOFFMANN|JANUARY 20, 2021
One way to improve throughput is to offer performance rewards to the players. The Port of LA will reward Terminal Operators for each fast turn around of a truck.
It is an interesting attempt to help truckers out. Quicker turns mean more driving time for truckers, and more loads carried. It also keeps chassis at work instead of sitting and waiting. As we know, there is a shortage of chassis at ports in the US today.
Let’s see how the reward system works. And how long the port will keep it up; as time passes, terminals may deliberately slow up to get the port to keep rewarding them. The bad performance could become ordinary, requiring rewards to go faster.
Kim Link-Wills, Senior Editor Wednesday, January 20, 2021
It’s always interesting to hear what Ryan Petersen of Flexport has to say about trade. In addition to being a top executive in the shipping 3PL arena, he’s often an astute economic observer.
And he’s echoing a refrain lots of ocean shipping customers are singing. Predictability and sticking to schedules is very important. How many times do ocean carriers have to hear the message?