The Role of the Trucking Industry in Solving the Congestion Crisis at West Coast Ports

The ports of Los Angeles and Long Beach in California are experiencing historic logistical bottlenecks, with all parties in the supply chain trying to clarify the root causes of the congestion. However, there remains significant disagreement within the industry over the causes of the bottlenecks at the San Pedro Bay port complex.

Ports and trucking fleets have long been plagued by difficulties in dispatching trailers and containers. Chassis and dry vans are scattered across the country, with some vehicles waiting far longer than usual to unload and return to ports or warehouses. The situation has become so severe that some carriers are charging customers detention fees for滞留 trailers.

"I've never seen anything like this," said Brent Hutto, chief relationship officer at Truckstop.com, a freight information platform that posts about one million freight orders daily.

Trucking industry experts believe the sector can help alleviate the situation at California ports, but they also point out that trucking issues are not the whole cause of the congestion, nor even the primary one.

The core of the congestion problem

The global supply chain has been operating beyond capacity for over a year, with logistics activity consistently above average. This has sparked much speculation within the industry and externally about the causes of the problems and potential solutions.

Matt Schrap, CEO of the Harbor Trucking Association, noted that the shortage of over-the-road (OTR) drivers is often seen by outsiders as a breakthrough point for solving port congestion. In a LinkedIn post on October 28,he stated this is a misguided solution. He told Transport Dive that adding drivers would do nothing to help port congestion. In fact, there is no driver shortage at the ports, and chassis are not the main problem facing port carriers.

Schrap said he sees many carriers having to send drivers home empty because they cannot get appointments to return empty containers, thus unable to release chassis. He added that under this reality, more drivers would only worsen the congestion.

"There is no driver shortage at the ports," Schrap said. The nationwide OTR driver shortage is a "scapegoat" and a "misleading issue."

"Empty containers are the core of the problem... they are overwhelming carriers' yards," Schrap emphasized.

Schrap said some might think carriers need more chassis, but many chassis are trapped under empty containers. In that sense, chassis are being used as storage tools.

"This isn't necessarily a trucking problem," Hutto said, "but rather the inefficiency of the terminal yards themselves."

According to Gene Seroka, executive director of the Port of Los Angeles, at amedia briefingon November 16, last week approximately65,000 empty containerswere stranded at the port's terminals. This left marine terminals with almost no spare space for trucks to return empty containers until vessels load them and ship them back across the Pacific.

"It's all about productivity," Schrap said, "and that cannot be overemphasized."

RPT 11/19: 159 total ships inport LA/LB incl. 95 at anchor or loitering & 64 at berths. Of the 159, 101 are container ships incl. 71 at anchor or loitering & 30 at berth. 46 vessels loitering; 36 container ships, 4 tankers, 3 bulk, 3 general cargo.
More: https://t.co/5aY5tXPsjq pic.twitter.com/Euy1YYh0CX

— Marine Exchange (@MXSOCAL) November 19, 2021

Hutto believes the port yards are understaffed, causing delays in unloading cargo and transferring it to trucks or rail. Seroka refuted this claim.

"We haveplenty of dockworkers to get the job done," Seroka said in October. Since March 2020, workers of the International Longshore and Warehouse Union (ILWU) have averaged six days of work per week. Additionally, the union has expanded its workforce and strengthened training programs in recent months.

So how exactly can the trucking industry help unclog the ports? The answer may be that trucking can only contribute partially, as it is just one link in the entire supply chain.

Freight modes collaborate on solutions

On October 26, Chris Spear, president and CEO of the American Trucking Associations (ATA), told media at the ATA Management Conference & Exhibition in Nashville that the trucking industry will work with other modes such as rail and ocean shipping to propose solutions for easing bottlenecks at ports and other supply chain nodes.

"In certain areas, containers can be temporarily stacked from two to four high," Spear said. "This helps free up yard space. With space, the flow of empty and loaded containers will greatly improve. Right now, everyone is running out of space."

The Port of Long Beach has recently allowed containers to be stacked four high, but Schrap noted that companies must have the appropriate stacking equipment, which creates another logistical challenge.

Hutto believes local governments should take on more responsibility. The ports of Los Angeles and Long Beach are governed by the city governments of the two cities respectively. Both cities and the state of California have begun investigating the bottlenecks.

On Wednesday, California Governor Gavin Newsom acknowledged the progress made at the ports and announced regulatory waivers to speed up truck flow at the two mega-ports.

One measure is extending hours at some Department of Motor Vehicles (DMV) offices to ease labor constraints in the truck driver market. Newsom said at the Port of Long Beach this would nearly double monthly CDL (commercial driver's license) tests from 5,000 to 9,700.

Another measure isrelaxing weight limits, raising the weight limit on state highways and interstates between the ports of Los Angeles, Long Beach, and inland California distribution centers from 80,000 to 88,000 pounds.

Schrap is skeptical about the practical effect of the higher weight limit. Many containers arriving at the ports are loaded with lightweight retail goods such as shoes. Currently, members of the Harbor Trucking Association are not eagerly applying to Caltrans for permits to carry heavier loads.

At LA and Long Beach ports today talking about how we can alleviate supply chain issues.

Good news -- we’ve seen a 32% DROP over 2 weeks for containers sitting on docks.

Today, CA’s issuing a temporary truck weight exemption on our highways to keep goods moving efficiently.

— Gavin Newsom (@GavinNewsom) November 17, 2021

Schrap said his association's members have taken their own measures to address the empty container problem. Trucking companies have leased sites outside the ports, even as far as Arizona, "renting wherever they can find space," Schrap said.

But even with off-site storage solutions, problems persist. Schrap said a survey found that its members have at least 9,438 empty containers, of which 8,117 are still on chassis. If fleets use chassis for storage, they cannot be used for unloading operations.

Schrap hopes to see two things: the introduction of "sweeper vessels"—ocean carriers dedicated to returning empty containers to Asia—and the establishment of more officially recognized empty container yards—acknowledged by yard operators, ocean carriers, and equipment providers—with no additional fees at such yards.

Hutto noted that change will not come quickly, as government agencies, like large ships, turn slowly. Spear also holds little hope for miracles in the short term, especially before the holiday season.

"This problem cannot be solved before Christmas," Spear said. "Working with other modes and policymakers to jointly understand the nature of the problem is the fastest way to solve it."