Category Archives: Trucking

Terminals in Ports of L.A., Long Beach move container chassis fee to September 1

Again the container chassis issue creates controversy.  Leasing companies created a ‘pool of pools’ in the LA/Long Beach area but are not paying port operators for services and storage performed on or by the port operators.  The $5 fee on a loaded chassis (whether the container is empty or not) is supposed to cover this work.

It’s another example of how hard it is to get a pool to work well.  Normal ways of compensating participants are not usually fair to all parties; nor do they usually act to keep the pool together.  But here the issue is simply that the pool is skimming profits by benefiting from free work by a non-participant; or we could look at the terminals as a dummy participant that contributes no chassis but pays anyway.

We have a talk on a related aspect at the IAME 2016 annual conference in Hamburg later this month.

LONG BEACH, Calif.–The West Coast MTO Agreement (WCMTOA) has extended the implementation date of a new tariff rule for chassis services by one month.

Source: Terminals in Ports of L.A., Long Beach move chassis rule to September 1 – Canadian Shipper

California Sustainable Freight Action Plan

California has released its Sustainable Freight Action Plan. It’s a great project, and as usual, the state is a leader, here making significant moves guiding improvement in the freight transportation triple bottom line.

screenshot-dot.ca.gov 2016-05-23 10-27-38

Source: California Sustainable Freight Action Plan  Read it online at the link. Here’s the actual plan:  pdf-icon-logo1  cfmp_appendix-complete

screenshot-metrans CITT logo 2016-05-23 10-59-49   Here’s a white paper from California State University Long Beach which was used in the deliberations.  PDF icon logoFreight Efficiency White Papers_Final Version

Truckers can be Self-Driving Freight Haulers

Retrofitting automobiles has always been a cost effective way to modify your vehicle.  This new firm (very well funded, however!) plans to make add-on self-driving kits for Class 8 trucks.   I think this is a very realistic thing to do, since semis have very long lifetimes in service.

Former employees of Google, Apple, Tesla, Cruise Automation, and others – 40 people in total – have formed a new San Francisco-based company called Otto with the goal of turning commercial trucks into self-driving freight haulers.

Source: Turning Truckers into Self-Driving Freight Haulers – Supply Chain 24/7

We have plenty of evidence of long truck lifetimes from the Clean Trucks program at the Ports of Los Angeles/ Long Beach.  Emissions retrofit kits were required since so many drayage truckers were driving vehicles earlier than 2007, and had no means of affording a later model one with a less polluting engine.  Failure to understand this gave rise to a prolonged dispute between the San Pedro Bay ports and truckers, leading to a Supreme Court case.  The fight was not over pollution control; everyone wanted that.  It was about whether the ports could compel drivers to be employees of large firms who would be more likely to afford the newer trucks.  Most drayage drivers in the US are independent owner-operators who own their own truck; they work on piece rates and are usually cheaper than the mostly unionized larger drayage firms.

It is a classic example of unintended consequences of regulations and attempts to comply with them.  It wasn’t the CARB (California Air Resources Board) rule on pollution that was the culprit.  It was the details of the port’s reaction.

Some other posts from the same source about self-driving vehicles (the first has a report download):

The question is no longer “if” but rather “when” autonomous vehicles will appear on our streets and highways and DHL is ready to take a front seat on this journey.

Source: Self-Driving Vehicles in Logistics – Supply Chain 24/7 Paper

The Nikola Motor Company has emerged from a state of being unknown to unveiling plans for the first-ever 2000 horsepower (HP) electric class 8 semi-truck, called the Nikola One (named after Nikola Tesla).

Source: Nikola Motor Company Wants To Be the Tesla of the ‘Big Rig’ Trucking Industry – Supply Chain 24/7