The Port of Long Beach launched a pilot program this week to test out the push to expand gate hours for trucks in an effort to move freight more quickly amid an unprecedented and ongoing cargo surge in the San Pedro Bay port complex.
Total Terminals International container terminal on Pier T, in the Port of Long Beach, has implemented the pilot hours Mondays through Thursdays. It expands container pickup and drop-off times to accommodate appointments from 11 p.m. to 1:30 a.m. at the terminal.
“We’re working around the clock to identify solutions that will bring those ships to discharge,” said Noel Hacegaba, managing director of Commercial Operations at the Port of Long Beach.
As dozens of ships sit outside the ports of Los Angeles and Long Beach — the two busiest in the nation — all eyes are on the push to make the supply chain more efficient.
The Long Beach port has already provided up to 65 acres of land that is available to move containers that need temporary storage, which will free up more space to bring in additional cargo at berth, Hacegaba said.
“We’re creating capacity by activating vacant land, building out (automated) terminals like the Long Beach Container Terminal and maximizing gate hours to expand nighttime gates,” he said. “That’s all in an effort to create capacity, to bring those ships at anchorage to berth.”
The pilot at Pier T will be promoted “very aggressively,” Hacegaba said.
“It effectively opens up the truck gates at TTI for 24 hours a day, four days a week, Monday through Thursday,” he added. “Our objective is to start there and scale up.”
Port of Los Angeles Executive Director Gene Seroka said that port is also implementing a pilot program, but that one will focus on getting commitments from importers to pick up cargo by appointment. Currently, he said, some 30% of truck appointments available are not being filled.
“It’s a number of issues,” he said of the nacklog. “Some importers may not need their cargo (immediately), some may have extended the (wait) time, warehouses are overflowing and really don’t have the empty space, a driver may be stuck in traffic, the ships may be off schedule.”
Seroka said the focus will be on providing incentives for picking up cargo on time. Some truckers make multiple appointments as they don’t get a clear direction about which terminals also are taking the empties they may have to drop off, Seroka said. The goal, he said, “is to maximize every shift” and get commitments from importers to pick up as much cargo as they can when it’s ready.
The extended-gate plan, dubbed “Accelerate Cargo,” was formulated with input from supply chain stakeholders and the U.S. Department of Transportation, along with both ports.
The idea is to expand terminal gate hours for truckers, along with nighttime and weekend hours for longshore crews, to get freight moved out more quickly.
That’s needed since the stunning cargo surge continues to “park” ships filled with cargo outside the twin ports.
But fixing the problem is neither quick nor easy.
The entire supply chain — which includes transport via truck or rail and warehouse availability once cargo is unloaded — is in need of a major tune up in efficiency, officials have said.
The issues were addressed recently at a supply chain summit hosted by the Port of Long Beach that brought leading voices together on Tuesday, Sept. 21, to explore how to move forward.
“Many of the supply chain challenges we are witnessing were already occurring prior to the pandemic,” said Port of Long Beach Executive Director Mario Cordero, “but now are magnified due to our high cargo volumes.”
State and federal representatives have been brought in to seek relief from the bottlenecks that also have led to price spikes.
As for the pilot, it’s only a beginning, Hacegaba said.
“The plan is to monitor the utilization of nighttime gates and scale up to expand that to other terminals,” he said. “But it will all depend on utilization.
“The common question,” Hacegaba added, “is why are there so many ships at anchorage? The short answer is the magnitude of the cargo surge that commenced last July (2020), the doubling of e-commerce and the effort to replenish inventory. All of that is continuing with a warehouse sector that’s full.”
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September 25, 2021 at 09:00PM
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Port of Long Beach launches pilot program to extend gate hours - Long Beach Press Telegram
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