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CHAPTER 10 Extra Drayage Trips Dry Runs So-called "dry runs" result from uncompleted transactions, often due to the same kind of information and process issues reflected in the previous trouble ticket discussion. These dry runs add cost, time, and emissions but achieve no transportation purpose. There are a wide variety of other circumstances in which drayage drivers are adding trip legs, miles, and time to their move- ments as a result of changing business and operating practices at the port terminals. In many cases, these extra trips have become the new norm. A dry run occurs when a trucker goes to the marine terminal but is unable to complete the assignment. For example, a dry run might result when a driver arrives at the terminal to pick up an import load before the load has been released. Depending on the kind of cargo, an import container must be released by one or more government agencies. In addition, a terminal will not release a container until all the freight charges including detention are paid. The team identified a number of trouble ticket categories that could result in dry runs. Trou- ble tickets likely to cause dry runs were found to be a smaller subset of all trouble tickets than the team expected. The study team notes that terminals generally have made significant efforts to improve electronic communication between themselves and motor carriers, and likely have reduced the frequency of dry runs over the past several years. Dry runs impose a financial burden on the motor carrier. The study's most egregious anec- dote was reported by a Canadian motor carrier serving the Port of New York and New Jersey. In order to ensure speedy delivery of the cargo, his customer requires him to dispatch drivers from Canada to New York the day before the cargo becomes available in Northern New Jersey. If the cargo remains unavailable for some reason, the drivers may wait several hours until the cargo is discharged and cleared. If, however, the problem happens on a Friday, the motor carrier brings its drivers back to Canada, pulling a bare chassis, only to return for the payload on Monday. Extra Empty Equipment Moves Occasionally, empty equipment must be shuttled to where it will be more useful. These move- ments correct imbalances and occur in a number of different circumstances. Examples include the following: Vessel sharing agreements often result in marine or rail terminals having custody of empty equipment that the ocean carrier wants loaded on a ship at a different marine terminal. The result is an empty move between the two marine terminals. 76

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Extra Drayage Trips 77 Sometimes surplus equipment builds up at a local or inland CY, rail terminal, motor carrier, or marine terminal. Again, the result is an empty move between terminals. Regional chassis pool providers regularly experience equipment imbalances requiring empty drayage movements to supply chassis in locations where they are needed. Pool chassis are not yet fully interchangeable, and motor carriers sometimes find themselves at a terminal that will accept an empty or loaded container but not the chassis on which it is mounted. This generates a separate move to a chassis depot. The common thread is that these movements are a cost to be minimized and, to the extent to which they can be avoided, they are extra trips for the marine carriers and equipment providers who pay for them. Return Moves to Satellite Locations The Uniform Intermodal Interchange Agreement (UIIA) defines the standard terms under which transportation companies transfer custody of equipment such as trailers, containers, and chassis. Until recently, the UIIA required the motor carrier to return the equipment to the loca- tion where it was obtained. The contract requirement was that an import container taken from a marine terminal would be required to be promptly returned to that marine terminal. The same investment in improved communications between marine carriers, terminals, and motor carriers that reduces the frequency of dry runs also provides the intermodal community with the agility to direct, on short notice, the return of equipment to its optimal location, thereby avoiding some of the repositioning costs described above. As a result, the UIIA was modified in November 2009, to match an emerging industry practice. The change highlighted in the follow- ing paragraph offers the prospect of eliminating a fraction of the cost associated with balancing empty equipment. Absent a separate bilateral agreement in written or electronic form between the Parties, the Motor Car- rier shall use the Equipment for only the purposes for which it was interchanged, not authorize use by others, and promptly return the Equipment after its interchange purpose is complete. The Motor Carrier shall return the Equipment to the physical location at which the Equipment was received unless the Provider directs the Equipment to be returned to satellite locations as governed by (1) a written bilateral agreement between the Parties or (2) a notification from the Provider to the Motor Carrier via internet posting, e-mail, or shipping order. Satellite location(s) are facilities which are within the same local com- mercial territory and support operations of the Provider for the location from which the Equipment was originally received. Whenever a return location is changed, Provider must notify the Motor Carrier by e-mail by 16:00 P.M. local time the business day prior to the change becoming effective. Motor Carrier must furnish the Provider with e-mail addresses to be used for Motor Carrier notification when return locations are changed.3 As a result, an import container taken from a marine terminal and made empty by a customer may be required to be returned to a nearby CY, rail facility, or alternate marine terminal. These rules are new, and the governing body of the UIIA is monitoring the use of this increased flexi- bility. Motor carriers are concerned that they will be required to provide a service that is different and more costly than originally offered. The result of this change has been an increase in the complexity of motor carrier operations and an increased likelihood of a dry run caused by returning an empty to the wrong location. The level of complexity is illustrated by Figure 101, which provides drayage drivers 143 sepa- rate instructions involving 11 different marine carriers, 7 different locations within a heavily con- gested 5-mile radius, and occasionally requires the line to be contacted directly. 3 Uniform Intermodal Interchange & Facilities Access Agreement, May 2010, page 3.

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78 Truck Drayage Productivity Guide PNCT Empty Locations Effective TUESDAY 2/16/2010 FOR RETURN Reefers With 20' Open 40' Open 40' High 40' High Cube Reefers With Gensets Shipping Line 20' Dry Tops 20' Flat 20' Reefers Hangers 40' Dry Tops 40' Flat Cubes Reefers 45' High Cube Gensets Chassis EMPTY EMPTY MSC DEPOT PNCT PNCT PNCT Call MSC PNCT PNCT PNCT DEPOT PNCT PNCT PNCT PNCT Remarks: Empty Depot is located at 103 Marsh Street. PICK UP EMPTY 20' DRY + 40' HIGH from EMPTY DEPOT on Marsh Street. All other empty pick up at PNCT main terminal. RETURN MAJOR DAMAGED EMPTIES to EMPTY DEPOT on MARSH STREET APL S. APL APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny APL S. Kearny Kearny China Shipping PNCT IRONBOUND IRONBOUND PNCT IRONBOUND PNCT IRONBOUND IRONBOUND PNCT PNCT PNCT PNCT IRONBOUND Remarks: All China Shipping 40' dry + 40' high containers picked up at CSX South Kearny should be returned to CSX South Kearny. All 20' drys from CSX should be returned to Ironbound - Delancy St. APM APM APM APM CMA/ANL TERMINAL PNCT PNCT ASI TERMINAL TERMINAL PNCT PNCT PNCT ASI TERMINAL ASI ASI Remarks: OFFHIRE PREFIXES YOU NEED TO CALL 757-961-2103 . FBXU, GCNU, DBKU, MSGU, TRDU, ACCU, CIIU, EAGU, CPIU, ACLU Maher - berth Maher - berth Maher - berth Maher - berth Maher - berth Maher - berth Maher - berth Maher - berth Maher - berth Maher - berth COSCO PNCT 64 64 64 64 PNCT 64 64 PNCT 64 64 64 64 Remarks: Cosco is using the NERP (NYK and OOCL) chassis pool for import and export cargo at PNCT. All damaged Cosco empties shoudl be returned to Container Services of New Jersey. Any customer service problems at PNCT, cal Eric @ 201-422-0500 ex 8494 or e-mail CSAV - LIBRA PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT Remarks: CSAV and Libra use Metro Pool chassis MAHER - CALL Evergreen PNCT PNCT PNCT BERTH 64 EVERGREEN PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT Remarks: EVERGREEN USES METRO POOL CHASSIS. HLL - Hapag Lloyd IRONBOUND IRONBOUND IRONBOUND IRONBOUND IRONBOUND PNCT IRONBOUND PNCT PNCT IRONBOUND IRONBOUND IRONBOUND IRONBOUND Remarks: APM APM APM APM APM APM APM APM APM APM Maersk/P&O TERMINAL TERMINAL TERMINAL TERMINAL TERMINAL TERMINAL TERMINAL TERMINAL TERMINAL IRONBOUND TERMINAL IRONBOUND IRONBOUND Remarks: NYK GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL Remarks: OOCL IRONBOUND IRONBOUND IRONBOUND CALL OOCL IRONBOUND IRONBOUND IRONBOUND IRONBOUND IRONBOUND CALL OOCL CALL OOCL CALL OOCL CALL OOCL Remarks: Figure 101. PNCT empty return instructions for 2/16/2010. Empty return matrices such as the example shown in Figure 101 are becoming a common com- munication tool at marine terminals and ports. Often, the matrices are posted on Web sites or made available in electronic bulletins. Empty return instructions also are transmitted by eModal. The study team found that frequent changes in empty return instructions could result in increased dry runs and delays. With the potential to change daily or even during the day, vary- ing empty return requirements disrupt driver and dispatcher efforts to optimize drayage trips. It is common for drayage firms to create a morning dispatch plan and communicate the plan to drivers the night before. This approach is essential when drivers can start work from multiple locations as early as 4:30 A.M. Changes to empty return instructions made after the dispatch plan is communicated are likely to result in some drivers draying empties to the wrong location. Drayage operators have legitimately questioned the need for empty return instructions to change so often or with such short notice. It may be that the disruption to drayage operations outweighs the benefits of fine-tuning container supplies on a daily basis. Auxiliary Depots Driven by the need to handle an increasing volume in a fixed space, Maher and Port Newark Container Terminal (PNCT) developed auxiliary container depots at the Port of New York and New Jersey. These depots effectively become part of the marine terminal operation without con- suming the most valuable shipside land. They have separate gates and serve to divert a meaning- ful share of gate transactions away from legacy gate facilities. This practice is illustrated in the instructions in Figure 101, which require a motor carrier with a 20-ft dry container to return the box to the PNCT Empty Depot, which is located less than

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Extra Drayage Trips 79 a mile away from the main terminal. It is likely that a motor carrier seeking an empty Mediter- ranean Shipping Company (MSC) container for an export load would be directed to pick up the box at the empty depot. The system has the following disadvantages for the motor carrier: The effective terminal area is larger and more spread out. Intra-terminal moves have been replaced with street moves of much longer distance and duration. The system generates an increased number of gate transactions and queues. These disadvantages are partially mitigated as follows: Queues and turn times for simple transactions involving the empty container depot may involve less congestion and be less costly than performing them at the main marine terminal. Separation of these functions leads to more specialized service. For NYNJ motor carriers, complications and complexities arise because there are at least three different systems for providing chassis in the port. At APM, the lines provide the chassis; at Maher, there is a mandatory co-op chassis pool; at the other facilities, there is a voluntary neu- tral chassis pool. With vessel sharing agreements and the interplay of landbridge and Atlantic marine international operations, it is not uncommon for the box to be delivered in one place and the chassis in another. The process of off-hiring and repositioning an empty container to a depot can require six one- way truck trips (as shown in Figure 102a) if the container is first returned to the marine terminal. Moving the empty directly to the depot can cut at least one truck trip from each off-hiring and repositioning cycle, making a total of five instead of six one-way truck trips (as shown in Figure 102b). Empty returns can generate delays or exceptions if demurrage charges are due because the container has been kept too long, if the container or chassis is damaged, or if the container inte- rior is not clean and empty. Demurrage charges can be a major source of contention between LOCAL CUSTOMER LOCAL CUSTOMER 1 1 CONTAINER DEPOT CONTAINER DEPOT 2 4 6 2 4 5 3 5 3 MARINE TERMINAL MARINE TERMINAL 1. Empty container move to marine terminal 1. Empty container move to depot 2. Bobtail outgate (to next assignment) 2. Bare chassis return to terminal 3. Empty container move to depot for off-hiring 3. Bobtail outgate (to next assignment) 4. Bare chassis return to terminal 4. Empty container move to terminal (for 5. Empty container move to terminal (for repositioning to Asia) repositioning to Asia) 5. Base chassis return to depot 6. Base chassis return to depot (a) Current off-hiring. (b) Depot direct off-hiring. Figure 102. Depot off-hiring trips.