It’s about time that Long Beach is able to provide on-dock container rail handling. Drayage trucks have been a massive source of pollution in the area since the 1990s. Even the Clean Trucks initiative, helpful though it was, can’t keep the particulates and other noxious elements of diesel exhaust down. The proper solution is on-dock rail.
Though this won’t touch the total cost of the project, it’s enough to get it going. It can certainly fund studies and preliminary work.
The time frame isn’t till 2025 for the first trains, though.
This article quotes Carl Bentzel, an FMC commissioner, who says that there is increased concentration of the ocean shipping business, from no carrier having more than 4%, to around 10 carriers, half of whom have 12-20% each.
Many supply chain participants have been calling for standardization of basic data surrounding a shipment, especially concerning its timing and needs as it moves through the system. There are no standards for this kind of data, and any attempt to compile it meets the challenge of disparate and constantly changing independent systems. And often, data for particular shipments is exchanged by emails.
It would be nice if the FMC would step in and develop a standard for data interchange. But different players have different concepts of what data is essential, according to the article. For instance, some partners want to know how long they have storage rights for a particular container, free of detention and demurrage charges. Others want to know whether a chassis is available, and where. Chassis shortages have hampered container moves in the LA/Long Beach area, despite a chassis pool; other ports have pools as well, but containers often ride out delays on a chassis if it’s believed the wait won’t be too long.
A standard would be nice, but often takes years to negotiate. The startup Dray Alliance, mentioned in the article, is trying to set a standard for some of this information with an online and app-based system. But not all the necessary data will be there, not for all the participants in the container-move supply chain. And it’s not clear truckers need one more app.
One thing that captured my attention in this nice article by Max Garland is the increasing use of 53 foot containers for imports to the US. This is a natural development, too long in coming as long as the US imports so much stuff. It saves the transloading step in SoCal once 40-foot containers get here; they can be moved immediately. A 53-foot container has 30% more cargo per truck move, and can be taken straight to a destination. No longer a reason to transload.
Another interesting point highlighted in the headline is FedEx’s offer to transport cargo in the new containers they are having built in China. I understand 53-foot containers are often being moved on refitted bulk ships rather than standard container ships which have slots for 40-foot containers. And these ships would move outside standard liner routes, which means they can choose where to drop off the containers. Perhaps they can go to ports that would avoid high congestion points. Often they are smaller as well, and take a shorter time to unload.
The article also discusses the jawboning that is taking place to get players in supply chains to move cargo quicker. Apparently the move toward 24-hour service in the supply chain has not gone too far, but some big players are already adopting the idea of it. Maybe the port terminals in LA and Long Beach won’t be able to do it, but the warehouses, trucking firms, and gate access points can, and even that will improve the flow of goods.
When people understand the whole problem and put their heads together, the congestion will abate. And they will figure out how to share the cost pain of doing so. It’s a lot more costly when you don’t have goods for sale on time.
Supply Chain and Logistics 