Port Of Los Angeles Rewards Wharf To Improve Truck Productivity

- Jan 26, 2021-

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As labor shortages continue to extend the turnaround time of truck drivers, the port of Los Angeles has launched an incentive program to transport trucks faster and more efficiently through container terminals.

The port's truck turnaround time and dual transaction incentive plan provide two ways for terminal operators to earn economic returns: one is to shorten the time of handling truck loading and unloading goods, the other is that trucks handle two kinds of transactions in the same journey.

According to the new incentive plan approved by the Los Angeles port board, terminals that increase truck turnaround time by 5% to 20% can earn $0.50 to $2.75 per loaded or unloaded TEU.

The proportion of reward increases with the increase of terminal time. If a terminal's average turnaround time in a month does not exceed 35 minutes, it will receive a maximum rate of $3 per TEU.

If at least half of the trucks unload one container and then leave with another, the TEU Container terminal can earn $0.40 to $1.40 per container.

This percentage is based on the number of dual transactions for all gate moves this month. Just like shift incentive, the reward ratio increases with the increase of the dual transaction percentage of the terminal.

Gene seroka, executive director of port, said: these best practices are needed more than ever to ease the ever-increasing pressure on the supply chain.

"When trucks enter and leave the port quickly, the port is more mobile; when trucks transport one container in one trip and leave with another, the port is more productive. We will reward the better performing terminals. "

In recent months, imports have dominated the flow of goods, depleting the market of containers needed for export.

This imbalance also reduces the number of chassis in circulation, causing inbound containers to pile up at the terminals and slowing down the movement of trucks in and out of the terminals.

The two incentive schemes will be paid monthly from February 1, based entirely on the amount of TEU handled by trucks. In the first year of the program, the cost of the port is estimated at $7.5 million.

Container terminals must choose to participate and provide additional data on truck movements, which will be collected and processed by port optimizer tools.

The port uses this tool to let its supply chain partners know the status of the goods before they arrive, so that terminals, truck companies, railroads and other companies can plan and allocate resources ahead of time.

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