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Truck Drayage Productivity Guide (2011)

Chapter: Chapter 10 - Extra Drayage Trips

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Suggested Citation:"Chapter 10 - Extra Drayage Trips." National Academies of Sciences, Engineering, and Medicine. 2011. Truck Drayage Productivity Guide. Washington, DC: The National Academies Press. doi: 10.17226/14536.
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Page 77
Suggested Citation:"Chapter 10 - Extra Drayage Trips." National Academies of Sciences, Engineering, and Medicine. 2011. Truck Drayage Productivity Guide. Washington, DC: The National Academies Press. doi: 10.17226/14536.
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Page 77
Page 78
Suggested Citation:"Chapter 10 - Extra Drayage Trips." National Academies of Sciences, Engineering, and Medicine. 2011. Truck Drayage Productivity Guide. Washington, DC: The National Academies Press. doi: 10.17226/14536.
×
Page 78
Page 79
Suggested Citation:"Chapter 10 - Extra Drayage Trips." National Academies of Sciences, Engineering, and Medicine. 2011. Truck Drayage Productivity Guide. Washington, DC: The National Academies Press. doi: 10.17226/14536.
×
Page 79
Page 80
Suggested Citation:"Chapter 10 - Extra Drayage Trips." National Academies of Sciences, Engineering, and Medicine. 2011. Truck Drayage Productivity Guide. Washington, DC: The National Academies Press. doi: 10.17226/14536.
×
Page 80
Page 81
Suggested Citation:"Chapter 10 - Extra Drayage Trips." National Academies of Sciences, Engineering, and Medicine. 2011. Truck Drayage Productivity Guide. Washington, DC: The National Academies Press. doi: 10.17226/14536.
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Page 81

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76 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. Extra Drayage Trips C H A P T E R 1 0

• 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 10–1, 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. Extra Drayage Trips 77 3 Uniform Intermodal Interchange & Facilities Access Agreement, May 2010, page 3.

Empty return matrices such as the example shown in Figure 10–1 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 10–1, 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 78 Truck Drayage Productivity Guide Shipping Line 20' Dry 20' Open Tops 20' Flat 20' Reefers Hangers 40' Dry 40' Open Tops 40' Flat 40' High Cubes 40' High Cube Reefers 45' High Cube Reefers With Gensets Reefers With Gensets Chassis MSC EMPTY DEPOT PNCT PNCT PNCT Call MSC PNCT PNCT PNCT EMPTY DEPOT PNCT PNCT PNCT PNCT 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 APL S. Kearny China Shipping PNCT IRONBOUND IRONBOUND PNCT IRONBOUND PNCT IRONBOUND IRONBOUND PNCT PNCT PNCT PNCT IRONBOUND CMA/ANL APM TERMINAL PNCT PNCT ASI APM TERMINAL APM TERMINAL PNCT PNCT PNCT ASI APM TERMINAL ASI ASI COSCO PNCT Maher - berth 64 Maher - berth 64 Maher - berth 64 Maher - berth 64 PNCT Maher - berth 64 Maher - berth 64 PNCT Maher - berth 64 Maher - berth 64 Maher - berth 64 Maher - berth 64 CSAV - LIBRA PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT Evergreen PNCT PNCT PNCT MAHER - BERTH 64 CALL EVERGREEN PNCT PNCT PNCT PNCT PNCT PNCT PNCT PNCT HLL - Hapag Lloyd IRONBOUND IRONBOUND IRONBOUND IRONBOUND IRONBOUND PNCT IRONBOUND PNCT PNCT IRONBOUND IRONBOUND IRONBOUND IRONBOUND Maersk/P&O APM TERMINAL APM TERMINAL APM TERMINAL APM TERMINAL APM TERMINAL APM TERMINAL APM TERMINAL APM TERMINAL APM TERMINAL IRONBOUND APM TERMINAL IRONBOUND IRONBOUND NYK GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL OOCL IRONBOUND IRONBOUND IRONBOUND CALL OOCL IRONBOUND IRONBOUND IRONBOUND IRONBOUND IRONBOUND CALL OOCL CALL OOCL CALL OOCL CALL OOCL PNCT Empty Locations Effective TUESDAY 2/16/2010 FOR RETURN Remarks: Remarks: Remarks: Remarks: 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 enordstedt@cosco-usa.com Remarks: CSAV and Libra use Metro Pool chassis Remarks: EVERGREEN USES METRO POOL CHASSIS. 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. Remarks: OFFHIRE PREFIXES YOU NEED TO CALL 757-961-2103 . FBXU, GCNU, DBKU, MSGU, TRDU, ACCU, CIIU, EAGU, CPIU, ACLU Remarks: Cosco is using the NERP (NYK and OOCL) chassis pool for import and export cargo at 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 Figure 10–1. PNCT empty return instructions for 2/16/2010.

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 10–2a) 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 10–2b). 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 Extra Drayage Trips 79 LOCAL CUSTOMER CONTAINER DEPOT MARINE TERMINAL 1 2 3 4 5 6 1. Empty container move to marine terminal 2. Bobtail outgate (to next assignment) 3. Empty container move to depot for off-hiring 4. Bare chassis return to terminal 5. Empty container move to terminal (for repositioning to Asia) 6. Base chassis return to depot LOCAL CUSTOMER CONTAINER DEPOT MARINE TERMINAL 1 2 4 5 3 1. Empty container move to depot 2. Bare chassis return to terminal 3. Bobtail outgate (to next assignment) 4. Empty container move to terminal (for repositioning to Asia) 5. Base chassis return to depot (a) Current off-hiring. (b) Depot direct off-hiring. Figure 10–2. Depot off-hiring trips.

drayage firms and ocean carriers. Such issues arising at entrance gates are likely to result in trou- ble tickets. Issues arising over damage to the container or chassis also will result in a trouble ticket and a delay. Empty containers returned with soiling or the remnants of packing materials are a special problem for drayage drivers. In principle, the driver should have checked the interior con- dition when picking up the empty container form the consignee. Time pressure or recalcitrant employees at the consignee’s loading dock may, however, saddle the driver with a dirty or clut- tered unit. If so, the driver must empty and clean the unit before it will be accepted at the marine terminal. Too often, the driver winds up dumping any remnants of packing, broken pallets, and other debris by the side of the road or in a vacant lot. Because the ultimate origin and destination of the box and chassis are uncertain at time of pick up, the motor carriers have sought relief under the provisions of the UIIA, which obligates the motor carrier only to return the equipment to the pick-up point. Motor Carrier Shuttles and Drayoffs Motor carriers with nearby terminals often make shuttle moves between marine and motor carrier terminals. These shuttle moves serve some of the following purposes: • The shuttle drivers are very savvy regarding marine terminal services and can complete the marine terminal processes more quickly than less experienced drivers. • A shuttle may buffer and extend the practical range of a long- or medium-haul operation. The over-the-road driver turns at the local terminal rather than at the marine terminal. • The shuttle service may be necessary if the motor carrier’s other drivers do not have the proper credentials to enter the marine terminal (TWIC or Sea Link) or has a tractor that does not meet port emission standards. • Particularly for firms with company drivers, it may pay a motor carrier to use shuttle moves to fill a driver’s work day. Shuttle or drayoff operations break what would have been single trip legs into two parts: a move between marine terminal and motor carrier terminal, and a second trip between the motor carrier terminal and the customer. The reverse takes place on the return trip. These practices add miles and time to the drayage move, but may be the most efficient way for the trucking company to handle business. A handoff is almost certainly preferable to sending a non-eligible or unfamil- iar driver and tractor into the marine terminal. It is likely that these practices will increase with the spread of TWIC, clean truck programs, RFID requirements, and other factors that distinguish port drayage as a specialized business. Increased complexity appears to be a necessary cost of achieving security and emissions goals. The upside of these practices is that more of the drayage business will be handled by knowledge- able, experienced, and specialized firms capable of increasingly efficient port drayage operations. Extra Trip Solutions Planning and Communications In site visits and from other contacts, the study team observed a high degree of operational planning at both marine terminals and drayage firms. Those plans, however, are neither coordi- nated nor shared. Communications are essentially one-way marine terminal Web sites and announcements. Some marine terminal operators use booking and vessel manifest information to gauge likely gate volumes and labor requirements for the next day, but most confine that plan- ning effort to labor that handles the CY and the vessel. 80 Truck Drayage Productivity Guide

Drayage firms around the country have repeatedly expressed a desire for stable, predictable, and coordinated operating practices among the marine terminals at a port. These include • The same gate hours and functions at all terminals, • The same identification and documentation requirements at all terminals, and • Consistent empty return instructions that do not change from day to day or on short notice. The main function of a marine terminal is to unload and load the vessels of its primary cus- tomer, the ocean carrier. All other terminal functions, including efficient handling of drayage requirements, are subordinated to vessel handling. This reality is reflected in the common practice of marine terminals to close off portions of the terminal to drayage drivers or restrict the drayage functions available while working a ship. These are practices that result in drayage dry runs and delays. Equipment control (i.e., management of containers and chassis) is an important marine ter- minal and ocean carrier function but apparently does not receive full attention in the presence of vessel handling requirements. A 2003 study4 of empty container logistics in Southern Califor- nia found that ocean carrier and marine terminal equipment control personnel waited until excess empties accumulated in the terminal before having them drayed to an off-terminal depot. It was confirmed that common terminal operating systems permitted proactive equipment con- trol by issuing alternative empty return instructions when the loaded container was released, but that feature was not being used. Experienced and well-organized drayage firms can attempt to optimize operations under almost any circumstances if those circumstances are reasonably stable and consistent. Inconsis- tent and unstable circumstances put up barriers to efficient dispatching and operations that ulti- mately cost drayage firms and their customers time and money. It would be unreasonable to expect joint planning between multiple marine terminals, mul- tiple ocean carriers, and hundreds of drayage firms. It would appear reasonable, however, for marine terminals to set empty return instructions proactively so that they could remain unchanged for a week or more. It also would be valuable for marine terminals to provide advance notice of any changes in gate hours, functional restrictions, or other changes that should be reflected in drayage dispatch plans. Extra Drayage Trips 81 4 The Tioga Group, Inc., Empty Ocean Container Logistics Study, Gateway Cities Council of Governments, Port of Long Beach, and Southern California Association of Governments, May 2002.

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TRB’s National Cooperative Freight Research Program (NCFRP) Report 11: Truck Drayage Productivity Guide is designed to help improve drayage productivity and capacity while reducing emissions, costs, and port-area congestion at deepwater ports.

The guide includes suggestions designed to help shippers, receivers, draymen, marine terminal operators, ocean carriers, and port authorities address inefficiencies, control costs, and reduce associated environmental impacts of truck drayage.

The guide identifies and quantifies the impacts of bottlenecks, associated gate processes, exceptions (trouble tickets), chassis logistics, congestion, and disruption at marine container terminals. The impacts are described in terms of hours, costs, and emissions that were estimated using the Environmental Protection Agency’s DrayFLEET model.

A CD-ROM, which contains the final report on the development of NCFRP Report 11 and its appendices, is included with the print version of NCFRP Report 11.

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