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Perspective on the Trucking Perspective on the Trucking IndustryIndustry
Jim GillCalifornia Cartage Company
March 23, 2006
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A Busy Day at Anchor in LB/LA Port
June to December 2004
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A Busy Day at Terminals in LB/LA PortA Busy Day at Terminals in LB/LA Port
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Port Terminal Congestion Day to NightPort Terminal Congestion Day to Night
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What A Difference A Year MakesWhat A Difference A Year MakesMid-Year 2004 to 2005 ComparisonMid-Year 2004 to 2005 Comparison
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What A Difference A Year Makes Cont.What A Difference A Year Makes Cont.End-Year 2004 to 2005 ComparisonEnd-Year 2004 to 2005 Comparison
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LA/LB Port Trade in 2005 and Estimated 2006LA/LB Port Trade in 2005 and Estimated 2006
Los Angeles = 7.5 Million TEUs Increased 2.3%
Long Beach = Nearly 7.0 Million TEUs Increase of 16% Estimated Increase in 2006 = 8%
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Major Importers Impact on PortsMajor Importers Impact on Ports
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Major Commodities Major Commodities
Phoenician Proverb
All you need for All you need for successful international tradesuccessful international trade is: is:
A Buyer,A Buyer,
a Seller,a Seller, a Boat,a Boat,
and and a Trucka Truck!!
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Presentation Presentation AgendaAgenda
Growth Trend of Long Beach/ Growth Trend of Long Beach/ Los AngelesLos Angeles
Key Performance Indicators for Trucking- Cost of Operations- Number of Daily Turns (Productivity)- Supply of Trucking Manpower
Impact of Pier Pass
Issues and Concerns
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2.23.8 5.4
9.5 9.65 10.63 11.84 13.115.5
19.6
35.3
26.3
0
5
10
15
20
25
30
35
40
45
1985 1990 1995 2000 2001 2002 2003 2004 2005 2010 2015 2020
Million (TEU)
News on the PortsNews on the Ports
Growth Trend at Long Beach/ Los Angeles PortGrowth Trend at Long Beach/ Los Angeles Port
Twenty-Foot Equivalent Units (TEU)
28,000 Truck Trips /dayBy 2005 +44%+44%50,000 Truck Trips /dayBy 2010
+34%+34%
60,000 Truck Trips /dayBy 2015
+34%+34%
80,000 Truck Trips /day**By 2020
Business is Good !!Are There Enough Resources?
Business is Good !!Are There Enough Resources?
Source*: http://www.polb.com and http://www.portoflosangeles.orgSource**: http://www.aapa-ports.org/programs/seminar_presentations/05_OpsIT/Larking,%20Paul.pdf and http://www.portmod.org/news/2005/April/PierPASSWCupdate.pdf
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Presentation Presentation AgendaAgenda
Issues and Concerns
Impact of Pier Pass
Key Performance Indicators for Key Performance Indicators for Tucking Tucking - Cost of Operations- Cost of Operations- Number of Daily Turns (Productivity)Number of Daily Turns (Productivity)- Supply of Trucking ManpowerSupply of Trucking Manpower
Growth Trend of Long Beach/Growth Trend of Long Beach/Los AngelesLos Angeles
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Key Performance Indicators for TruckingKey Performance Indicators for Trucking
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2000 2001 2002 2003 2004 2005
Insurance
100%100%
Fuel
60%60%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2000 2001 2002 2003 2004 2005
Registration (Tractor Plates)
90%90%
$0
$1,000
$2,000
$3,000
$4,000$5,000
$6,000
$7,000
$8,000
$9,000
2000 2001 2002 2003 2004 2005
Maintenance
30%30%
Cost of OperationsCost of Operations
Source: Independent Truck drivers survey
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Presentation Presentation AgendaAgenda
Key Performance Indicators For Key Performance Indicators For TruckingTrucking-- Cost of OperationsCost of Operations- Number of Daily Turns Number of Daily Turns (Productivity)(Productivity)- Supply of Trucking ManpowerSupply of Trucking Manpower
Growth Trend of Long Beach/Growth Trend of Long Beach/Los AngelesLos Angeles
Impact of Pier Pass
Issues and Concerns
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0
1
2
3
4
5
Pier to LA Rail 4 4 3 2.4 2.5 2.2
Pier to Ontario 3 2.6 2.2 2 1.6 1.5
2000 2001 2002 2003 2004 2005
Average Number of Daily Turns (Productivity)
Key Performance Indicators for TruckingKey Performance Indicators for Trucking
Avg
. Dai
ly #
Tu
rns
-50%
Source: Independent Truck drivers survey
Decrease in Productivity = Shortage of Drivers IncreasesDecrease in Productivity = Shortage of Drivers Increases
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““Driver market is the tightest it has Driver market is the tightest it has been in 20 years… it is critical we been in 20 years… it is critical we find ways to tap a new labor pool, find ways to tap a new labor pool, increase wages and recruit new increase wages and recruit new people into the industry that keeps people into the industry that keeps our national economy moving.” our national economy moving.”
By Bill GravesBy Bill GravesPresident of ATAPresident of ATASpring 2005Spring 2005
Key Performance Indicators for TruckingKey Performance Indicators for Trucking
Supply of Trucking ManpowerSupply of Trucking Manpower
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USAUSASupply of Truck Drivers Both Heavy and Tractor-Trailer
Key Performance Indicators for TruckingKey Performance Indicators for Trucking
Source: www.bls.gov/oesCountry: USAArea: All StatesSupersector: Transportation and UtilitiesIndustry: Truck Transportation
2004: -20,000 Drivers2004: -20,000 Drivers2014: -111,000 Drivers2014: -111,000 DriversSource: ATA Study, May 2005Source: ATA Study, May 2005
2004: -20,000 Drivers2004: -20,000 Drivers2014: -111,000 Drivers2014: -111,000 DriversSource: ATA Study, May 2005Source: ATA Study, May 2005
Trucking Manpower SupplyTrucking Manpower Supply
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Both The City of Los Angeles and Long BeachBoth The City of Los Angeles and Long BeachSupply of Truck Drivers both Heavy and Tractor- Trailer
Key Performance Indicators for TruckingKey Performance Indicators for Trucking
Source: www.bls.gov/oesState: CaliforniaArea: Los Angeles-Long Beach-Glendale, CA Metropolitan DivisionSupersector: Transportation and UtilitiesIndustry: Truck Transportation
-20%
Trucking Manpower SupplyTrucking Manpower Supply
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Issues and Concerns
1. The Shortage of Drivers is Increasing
• New Truck Driver Shortage
• Turnover is Above Normal
2. Drivers Are Working Fewer Hours (HOS) so fewer Turns Are
Made
• Waiting Time is Not Being Compensated for
3. A Rise in the Cost of Operations: Maintenance, Fuel, etc.
4. A 30 – 40% Decrease in Both Revenue and Productivity
5. No Change in Rates for Approximately 15 Years
Supply of Truck DriversSupply of Truck Drivers
Supply of Trucking ManpowerSupply of Trucking Manpower
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Supply of Truck DriversSupply of Truck Drivers
1. Interest qualified drivers, hire them, and make them want to stay Rise in
Productivity of Drivers
2. Keep the ports open longer PIER PASS(?)
3. The Automate Interchange Process *OCR, **RFID*OCR: Optical Character Recognition**RFID: Radio Frequency Identification
4. Improve the efficiency between the ocean terminal and the drivers
Obstacles and Solutions
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Presentation Presentation AgendaAgenda
Issues or Concerns
Impact of Pier PassImpact of Pier Pass
Key Performance Indicators for Key Performance Indicators for TruckingTrucking-- Cost of Operations Cost of Operations- Number of Daily Turns (Productivity)Number of Daily Turns (Productivity)- Supply of Trucking ManpowerSupply of Trucking Manpower
Growth Trend of Long Beach/Growth Trend of Long Beach/Los AngelesLos Angeles
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Impact of Pier Pass on the Trucking IndustryImpact of Pier Pass on the Trucking Industry
1. Start up very difficult• Change driver lifestyle• Driver slow to accept night work• Need additional compensation• Additional compensation received slow acceptance
2. Driver acceptance• Based on their ability to make more money• More money equates to more turns per shift• Drivers forced to nights by client pressure
Impact of Pier Pass on Drivers
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1. Start up very difficult• Additional staffing and cost to drayage firms• Increased concerns of security• Increased cost of insurance
Impact of Pier Pass on the Trucking IndustryImpact of Pier Pass on the Trucking Industry
Impact of Pier Pass on Drayage Firms
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1. Pier Pass Benefits• Added a second shift to move volume• Reduced traffic in peak hours
2. Pier Pass Deficiencies• Has not increased turn times• Has not put increased money in drivers pockets• A need for continual roll over day to night gate• Need for continuous work- no terminal down time
3. Future Pier Pass Concerns• Pier pass fee to increase by mid year• Drivers want part of the increase to haul nights• Price rise will drive more importers to off peak
Impact of Pier Pass on the Trucking IndustryImpact of Pier Pass on the Trucking Industry
Benefits, Deficiencies, and Concerns
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Concerns Going ForwardConcerns Going Forward
1. Import volume increase/ terminal congestion• More big vessels – 8,000 TEUS+• More technology
• RFID tag for all trucks – security• Radiation portals at all terminals• More on dock rail movement
2. Infrastructure congestion• Highway system for trucks• Rail capacity at Los Angeles Terminals
3. Diesel fuel prices• Need for a uniform fuel surcharge program
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Concerns Going Forward cont.Concerns Going Forward cont.
1. Development of an environment green zone• Both ports have a mandate• Rail to provide alternate power sources• Drayage firms to consider new fuel sources
• Liquefied natural gas -LNG
2. Develop inland container terminals• Distribution centers further from port• Move short haul inland by rail• Make better use of Alameda corridor
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Going The Next Mile Together NowGoing The Next Mile Together Now
1. Priorities• Security• Environment• Improved Infrastructure
2. Opportunities• Partnerships• Collaboration
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March 23, 2006March 23, 2006
THANK YOU!THANK YOU!
