BY MARK B. SOLOMON, SENIOR EDITOR
MARITIME/PORTS
GOLFERS LIVE AND DIE BY THEIR PUTTERS.
A bad green game will waste all the good that came
before it. So it goes with drayage, the job of hauling
ocean containers between seaports, intermodal
yards, and shippers’ facilities. If the dray isn’t properly executed, nothing else matters. Imports won’t
leave the terminals when they’re supposed to.
Exports won’t get loaded aboard vessels in a timely
manner. And mile-wide seams start to appear in
an otherwise perfectly synchronized supply chain.
Unfortunately, the drayage business is in a world
of hurt. Base rates for drayage services have been
stagnant for about a decade, according to drayage executives. In an extreme example of rate
hemorrhaging, Greg Gorno, owner of All Points
Noncompensatory rates have a negative cascading effect through the pipeline.
Drivers, mostly owner-operators responsible for their own expenses, are generally not well paid. To make matters worse, increasing congestion at the nation’s
ports forces drivers to wait for hours to either pick up or drop off their loads,
cutting into their productivity and earning power. Drivers that are paid by the
load can stew for two, four, and sometimes six hours at a marine terminal to
offload a box, take on another one, and leave the facility. A study of 1,600 trucks
serving the ports of Los Angeles and Long Beach, the nation’s busiest port complex, from October 2012 to May 2013 found that 20 percent of all truck moves
took more than two hours; as a general rule, waits of more than one hour are
considered unacceptable from both an economic and environmental stand-
transportationreport
Ignore the
dray, and
it could
go away
The drayage business is
in bad shape and suffers
from benign neglect.
Can technology and a
more enlightened
stakeholder attitude
reverse the decline?