STRATEGIESTO
MAXIMIZEASSET
UTILIZATIONINTHE
CALIFORNIAFREIGHT
SYSTEM:PARTII–
STRATEGIES
March2016
AWhitePaperfromtheFreightEfficiency
StrategiesDevelopmentGroup
LeadAuthor:MiguelJaller,UniversityofCaliforniaDavis
WorkingGroupMembers:AlisonBird,FedEx;MikeChristensen,
PortofLongBeach;ChrisShimoda,CaliforniaTruckingAssociation;
AnnieNam,SouthernCaliforniaAssociationofGovernments;Lee
Kindberg,MaerskLine;KerryCartwright,PortofLosAngeles;and
ElizabethFretheim,Walmart
AbouttheFreightEfficiencyStrategiesDevelopmentGroup
InJuly2015,GovernorJerryBrownissuedExecutiveOrderB-32-15,directingseveralstate
agenciestoworktogetherindevelopinganintegratedactionplanthatwill“establishclear
targetstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincrease
competitivenessofCalifornia’sfreightsystem”andthattheplanshould“identifystatepolicies,
programs,andinvestmentstoachievethesetargets”.Inresponse,aninteragencygroupwas
formedtooverseethedevelopmentoftheCaliforniaSustainableFreightActionPlan(CSFAP).
MembersoftheinteragencygroupincludetheCaliforniaAirResourcesBoard,theCalifornia
DepartmentofTransportation(Caltrans),theCaliforniaEnergyCommission(CEC),andthe
Governor'sOfficeofBusinessandEconomicDevelopment(GO-Biz).Aspartofdevelopingthe
plan,theinteragencygrouphassolicitedfeedbackfromabroadrangeofstakeholdersthrough
avarietyofengagementactivitiesandoutreachefforts.Acomponentofthisengagementwas
thedevelopmentoftheFreightEfficiencyStrategiesDevelopmentGroup(FESDG)madeupof
freightexpertsfromacademia,industry,andgovernment.Thepurposeandmaintaskofthis
groupwastoproduceaseriesofwhitepapersthatidentifypromisingstrategiesforincreasing
theefficiencyofthefreightsystem.Aseriesofsixpapersweredevelopedoverthecourseofsix
months.Eachpaperfocusesonaspecificthemeforincreasingfreightefficiencywithinthe
largerfreightsystem.
AbouttheNationalCenterforSustainableTransportation
TheNationalCenterforSustainableTransportationisaconsortiumofleadinguniversities
committedtoadvancinganenvironmentallysustainabletransportationsystemthroughcuttingedgeresearch,directpolicyengagement,andeducationofourfutureleaders.Consortium
membersinclude:UniversityofCalifornia,Davis;UniversityofCalifornia,Riverside;University
ofSouthernCalifornia;CaliforniaStateUniversity,LongBeach;GeorgiaInstituteofTechnology;
andUniversityofVermont.Moreinformationcanbefoundat:ncst.ucdavis.edu.
Disclaimer
Thecontentofthewhitepapersproducedbythegrouprepresentsdiscussionsamongmany
individualsrepresentingvariousfreightindustrystakeholders.Itmaynotreflectconsensuson
thepartofalloftheparticipants,nordothesepapersnecessarilyrepresenttheofficialopinion
orpolicyoftherepresentedorganizations,butratherarangeofthinkingthatmightbeusedto
informandbuildconsensusforthedevelopmentoftheCaliforniaSustainableFreightAction
Plan.Giventheperspectiveofthevariousfreightstakeholders,paperauthorshaveattempted
toincludedissentingopinionsandareasofconcurrencewheretheymayexist.Thisdocumentis
disseminatedunderthesponsorshipoftheUnitedStatesDepartmentofTransportation’s
UniversityTransportationCentersprogram,intheinterestofinformationexchange.TheU.S.
GovernmentandtheStateofCaliforniaassumesnoliabilityforthecontentsorusethereof.Nor
doesthecontentnecessarilyreflecttheofficialviewsorpoliciesoftheU.S.Governmentand
theStateofCalifornia.Thisreportdoesnotconstituteastandard,specification,orregulation.
Acknowledgments
ThisstudywasfundedbyagrantfromtheNationalCenterforSustainableTransportation
(NCST),supportedbyUSDOTandCaltransthroughtheUniversityTransportationCenters
program.TheauthorswouldliketothanktheNCST,USDOT,andCaltransfortheirsupportof
university-basedresearchintransportation,andespeciallyforthefundingprovidedinsupport
ofthisproject.
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1
TABLEOFCONTENTS
EXECUTIVESUMMARY...................................................................................................................3
Abstract..........................................................................................................................................6
IntroductionandBackground........................................................................................................6
ImprovingPerformanceoftheDistributionEconomy...................................................................9
VoluntaryOff-HourDelivery(OHD)Programs(DemandManagement)..................................11
Receiver-ledConsolidation(CollaborativeLogistics)...............................................................16
InternationalGateways................................................................................................................17
DevelopmentofaChassisPoolofPoolsFullyIntegratedSystem(CollaborativeLogistics)....19
ImprovementofTrafficMitigationFeePrograms(DemandManagement)............................21
ImplementAdvancedAppointment/ReservationSystems(DemandManagement).............23
DevelopinganIntegratedSystemforDrayOperationsandServices(CollaborativeLogistics)26
LoadMatchingandMaximizingCapacity(CollaborativeLogistics).........................................27
AllLayersoftheEconomy............................................................................................................29
RelaxingVehicleSizeandWeightRestrictions(TrafficManagement).....................................29
SummaryofStrategies.................................................................................................................31
2
StrategiestoMaximizeAssetUtilizationintheCalifornia
FreightSystem:PartII–Strategies
EXECUTIVESUMMARY
Thispaper(thesecondofatwo-partseries)buildsuponthediscussionofthefreightsystem
andkeyinefficienciesinCalifornia(discussedinPartI)andputsforwardasetofstrategies
targetedatimprovingsomeofthoseinefficiencies.Thepaperfocusesonthosethatcouldhelp
improveormaximizeassetutilizationbyfosteringcollaborativelogistics(CL)practicesand/or
freightdemandmanagement(FDM).CLpracticesaredefinedasthoseactivitiesinitiated,
maintained,and/orconductedbydifferentsupplychainorfreightsystemstakeholdersinwhich
theycollaborate,coordinate,orcooperateintermsofresources,knowledge,assetsor
informationtoachieveoperationaloreconomicefficiencyimprovementsofalargersystem.
And,FDMstrategiesaredefinedastransportationpoliciesthatseektoinducechangesin
demandpatternsandfreightbehaviorstoincreaseeconomicproductivityand/orefficiency,
sustainabilityandenvironmentaljustice.Becauseoftheverynatureofthesystemitself,
strategiesdonotworkinisolation,andeachstrategymayrequirecomplementarystrategiesto
befeasibleandimplementable(e.g.,sponsoredprogramstoacquiretechnology,incentivesto
fosterbehavioralchanges,fundingforcapitalinvestments).
Thepaperprovidesinsightintoexpectedimpacts,planning,technicalandoperational
requirements,andevaluationmetricsforeachstrategybyanalyzinganumberoffactorssuch
as:
•
Nature of the Strategy: Collaborative logistics practices (collaboration/cooperation) or
freightdemandmanagement.
•
Geographic scope of the inefficiency/improvement strategy: Area(s) where the
inefficiency is acute, including at international gateways, on-road sections of the
distributionnetwork,andurbanareas.
•
Expectedbenefits:Anticipatedbenefitsofthestrategies(i.e.,reducecongestion,increase
environmental sustainability, enhance safety and security, enhance economic
competitiveness,increaserevenuegenerationandenhancelivability)
•
Levelofimplementationeffort/time/cost:Estimatedinputsrequired.
•
Primary stakeholders targeted by the strategy: Stakeholders directly affected by the
strategy.
•
Stakeholders’ role in the implementation/planning effort: Stakeholder type(s) and
anticipatedrole(s).
•
Potential for unintended consequences: Any undesirable impacts that could be linked
withastrategy.
3
Theresearchprocessincludedacriticalreviewoftheavailableinformation(e.g.,research
reports,operationalreports,implementationprograms,pilottests)ofcurrentfreight
operations,discussionsandstakeholderengagement(academia,publicandprivate
stakeholders,andgovernment)toidentifystrategiesthatcouldhelpimprovetheefficiencyof
theCalifornia’sfreightsystem.Theauthorsselectedgeographicscope(e.g.,layerofthe
economy)asacategoricalfactoranddiscussedthosestrategiesthatwouldmainlyaffectthe
distributioneconomyandtheinternationalgateways.Resultsfromtheprocessallow
identifyingthefollowingpotentialstrategies:
•
•
•
•
•
•
•
•
VoluntaryOff-HourDeliveryPrograms.Thisstrategyisbasedonavoluntaryprogramof
pick-upanddeliveryoperationsintheoff-hours.
Receiver-led Consolidation. This type of strategies seeks to foster behavioral changes
within supply chains by taking advantage of the power of receivers to push for cargo
consolidation.
DevelopmentofaChassisPoolofPoolsFullyIntegratedSystem.TheDevelopmentofa
Chassis-PoP fully integrated system that seeks to transition the current PoP to an
information and management system that provides the adequate type, quantity and
qualityofchassisavailable,andofferssimplifiedadministrativeandbillingservices.
ImprovementofTrafficMitigationFeePrograms.
Implement Advanced Appointment/ Reservation Systems. Seeks to develop and
implement and advanced appointment and reservation flexible system that integrates
withotherinformationsystemstomaximizeassetutilizations.
DevelopinganIntegratedSystemforDrayOperationsandServices.Thisstrategyseeks
to foster the development of cooperation and collaborative agreements between
drayageoperators,beneficialcargoowners,andinsomecases,shippinglinesandport
terminals,toofferasharedservice.
LoadMatchingandMaximizingCapacity.Therearemanyvariationsofloadmatching;
examples include matching empty containers with loads; first come, first take pickups;
and platforms to match small loads with available space in containers which are not
alreadyfull.
Relaxing Vehicle Size and Weight Restrictions. Allowing increases in truck length and
sizewouldprovidetheopportunityforsignificantgainsinefficiencyforcertainportions
ofthefreightindustry.
Eachstrategyshowedthatthereisvariabilityinthepotentialfortheirimpacts,thelevelsof
effortneededfortheirimplementation,andthetypeofstakeholdersinvolvedintheplanning,
research,andimplementationphases.Someofthestrategiesarelikelytobewidelyunderstood
bythepractitionercommunity,whileothersrequirecarefulanalysisandimplementationto
avoidunintendedconsequences.Aqualitativeassessmentofthestrategiesshowedthatthese
strategieshavethepotentialtogeneratepositiveeffectsintermsofincreasedoperational
efficiency,reducedcongestion,andimprovedenvironmentalsustainability;whilenot
generatingmajorimpactsonsafety,securityandenhancinglivability.However,themagnitude
ofthosebenefitscouldnotbeestimated,asadditionalresearch,simulation,modelingand
analysesarerequiredtoidentifythecorridors,and/orspecificlocations(orstakeholders)where
thosebenefitswouldberealized.Theanalysesalsoindicatethatthedevelopmentand
4
implementationofsomeofthesestrategies,althoughmainlytobeinitiatedbytheprivate
sector,wouldrequirecriticalexternalplanning,financialandpolicysupportfrom
local/regional/State/Federalgovernment,planningagencies,andotherpublicauthorities.And,
asalsodiscussedinPartIofthistwo-partseries,theanalysesshowedthatthereisnosingle
strategythatcouldaddresstherangeofinefficienciescurrentlyaffectingtheCaliforniaFreight
System.Whilesomeofthestrategiesareintendedtomitigatepressingissues,otherscould
helptoadaptandbeabletomitigatetheimpactsoffuturetrends,andoperationalpatterns.
Designingaplantoimprovethefreightefficiencyshouldconsiderasetorpackagesof
complementarystrategies.
5
Abstract
Thispaper(PartIIofatwo-partseries)discussesthekeyfindingsfromacollaborativeeffort
betweenacademia,publicandprivatestakeholders,andgovernmenttoidentifystrategiesto
improvetheefficiencyoftheCalifornia’sfreightsystem.
Thefreightsystemismulti-facetedandtherecouldbeamyriadofpotentialstrategies;
however,thepaperfocusesonthosethatcouldimproveorhelpmaximizeassetutilizationby
fosteringcollaborativelogistics(CL)practicesand/orfreightdemandmanagement(FDM).The
strategiesanalyzedinclude:receiver-ledconsolidation;voluntaryoff-hourdeliveryprograms;
developmentofanintegratedChassisPoolofPools;integratedsystemfordrayservices;load
matchingandmaximizingcapacity;improvingTrafficMitigationFeeprograms;implementing
advancedappointmentandreservationsystems;andrelaxingvehiclesizeandweight
restrictions.Thepaperdiscusseseachstrategytermsofitsnature(CLorFDM);thegeographic
scopeoftheinefficiencyorimplementation;theexpectedbenefits;levelofimplementation
effort/time/cost;theprimarystakeholderstargeted;thestakeholders’roleinthe
implementation/planningeffort;thepotentialforunintendedconsequences;andbarriersfor
implementation.
Theresearchshowedthatthereisgreatvariabilityinthelevelofdataavailable(e.g.,research
reports,operationalreports,implementationprograms,pilottests)toconductdetailed
assessments,highlightingtheneedforadditionaleffortstobeabletoestimatethemagnitude
ofthepotentialeffectsofeachstrategytoreduceinefficiencies(e.g.,congestion/delays,
environmentalemissions,safety,andeconomicimpacts,andcosts,amongothers).However,
stakeholderengagementduringtheresearchprocessallowedforaqualitativeassessment
basedonempiricalevidencefromon-goingefforts.
IntroductionandBackground
InPartI,wediscussedsomeofthecharacteristicsoftheCaliforniaFreightSystem,somekey
inefficiencies,andimportantaspectstoconsiderwhenaddressingsuchissues.PartIIdelves
intostrategiestoaddresssomeofthoseinefficiencies.Thefreightsystemismulti-facetedand
therecouldbeamyriadofpotentialstrategies.Thispaperfocusesonthosethatcouldimprove
ormaximizeassetutilizationbyfosteringcollaborativelogistics(CL)practicesand/orfreight
demandmanagement(FDM)strategies.Forthepurposeofthispaper,CLpracticesaredefined
asthoseactivitiesinitiated,maintained,and/orconductedbydifferentsupplychainorfreight
systemstakeholdersinwhichtheycollaborate,coordinate,orcooperateintermsofresources,
knowledge,assetsorinformationtoachieveoperationaloreconomicefficiencyimprovements
ofalargersystem.And,FDMstrategiesaredefinedastransportationpoliciesthatseekto
inducechangesindemandpatternsandfreightbehaviorstoincreaseeconomicproductivity
and/orefficiency,sustainabilityandenvironmentaljustice.Itisimportanttomakethe
distinctionbetweenFDMandfreighttrafficcontrol.Freighttrafficcontrolstrategiestryto
modifythefreighttrafficinthenetwork,withoutconsiderationoffreightdemand,i.e.,higher
tollsinahighway.Instead,FDMstrategiestrytomodifyfreightdemandthatcouldtranslate
intoareducednumberoffreighttrips.
6
Becauseoftheverynatureofthesystemitself,strategiesdonotworkinisolation,andeach
strategymayrequirecomplementarystrategiestobefeasibleandimplementable(e.g.,
sponsoredprogramstoacquiretechnology,incentivestofosterbehavioralchanges,fundingfor
capitalinvestments).Thisisespeciallythecaseforcollaborativeandcooperativebased
strategies.Ithasbeenalongstandingpracticeinthefreightsystemtoengageincollaborative
orcooperationagreements,whetherbysharinginformationandknowledgeorphysicalassets.
Thishasbeenthecasewhenfacilitatedbyathirdpartywhichcandemonstrateultimate
benefitstocargointerestsandcarriers.Regardlessofcollaborativeandcooperativebehaviors,
thesupplychainalsoremainsanexceptionallycompetitiveplace,andconsumersaroundthe
globeandinyourneighborhoodalikebenefitfromthecontinualdownwardpressureonthe
ratespaidtotransportgoods.
Thepaperdiscussessomespecificstrategiesandprovidesinsightintoexpectedimpacts,
planning,technicalandoperationalrequirements,andevaluationmetrics.Error!Reference
sourcenotfound.showsasummaryofthetypesofsuggestedimprovementstrategies.
Thekeyfactorsidentifiedandanalyzedforthesestrategiesinclude:
•
Nature of the Strategy: Collaborative logistics practices (collaboration/cooperation) or
freight demand management. Strategies may fall into either category, or may be a
combinationofboth.
•
Geographic scope of the inefficiency/improvement strategy: Area(s) where the
inefficiency is acute, including at international gateways, on-road sections of the
distributionnetwork,andurbanareas.Moredetailedgeographicscopescanbe:statewide,
or specific to a layer of the economy, freight corridors, a certain metropolitan area, or
particular locations within the State. Considerations of scope acknowledge the fact that
thefreightsystem,andthesupplychainswithinit,spanacrossvariousgeographicareas,
someofwhichextendbeyondCalifornia.
•
Expectedbenefits:Anticipatedbenefitsofthestrategies.Strategieswillbeabletoaddress
specificissuesandinefficienciesbasedonthebenefitstheyareexpectedtobringabout.
Benefitsmayinclude:
o ReducedCongestion
o IncreasedEnvironmentalSustainability
o EnhancedSafety
o EnhancedSecurity
o EnhancedEconomicCompetitiveness
o IncreasedRevenueGeneration
o EnhancedLivability
•
Level of implementation effort/time/cost: Estimated inputs required. While some
strategies may require lower levels of implementation and design effort, smaller costs,
andshorterimplementationscales,othersmayrequirelargecommitmentsofresources,
7
coordination, planning and policies. It is important to consider these factors when
examiningthefeasibilityandviabilityofstrategicoptions.
•
Primary stakeholders targeted by the strategy: Stakeholders directly affected by the
strategy.Stakeholdertypescaninclude:shippers,receivers,orcarriers.Definingprimary
stakeholdershelpstoidentifythetypesofmodes,industriesorfreightfacilitiesthatwould
be directly impacted by the strategy. This is significant, for instance, because it is
importanttobeabletoanticipatedetailsinregardstotrafficgeneration(includingheavydutytraffic,lightdutytraffic,through-traffic,largetrafficgenerators(e.g.,ports,airports,
andwarehouses),rail,maritime,andinlandwaterways,amongothers).
•
Stakeholders’ role in the implementation/planning effort: Stakeholder type(s) and
anticipated role(s). Strategies analyzed in this paper will require the participation of
various stakeholders. Nearly all efficiency strategies will require private sector
stakeholderstotaketheleadforthesuccessfulimplementationofsuchstrategieswithin
their supply chains. Additionally, public entities will need to provide critical external
planning,financial,orpolicysupport.
•
Potential for unintended consequences: Any undesirable impacts that could be linked
with a strategy. It is imperative to analyze, anticipate, and avoid unidentified and
unintendedconsequences.Whilerealworldresultscannottrulybeknownuntilafterthe
implementationofanimprovementstrategy,stepscanbetakentoanticipateandavoid
anynegativeconsequences.Pastexperiencescanbeanalyzedtoshedlightontopotential
issuesandmethodstocircumventsuchissues.
Table1:SummaryofStrategies
Layer of the Economy Nature of the Strategy
Collaboration/ Cooperation
Distribution Economy
Freight Demand
Management
Collaboration/ Cooperation
Trade and Manufacturing
Economies
All
Freight Demand
Management
Traffic Management
Strategy
Receiver-Led Consolidation
Voluntary Off-Hour Deliveries
[Chassis] Pool of Pools (C-PoP)
Integrated Dray Services
Load Matching/ Maximizing Capacity
Improving Traffic Mitigation Fee Programs
Implement Advanced
Appointment/Reservation Systems
Relaxing Vehicle Size and Weight
Restrictions
TheremainderofthispaperwilldiscussinSectionII,thosestrategiesrelatedtothedistribution
economy;SectionIIIfocusesontheinternationalgateways;andSectionIVprovidesasummary
overviewofthevariousstrategieswithrespecttotheirimpactsandotherplanningfactors.
8
ImprovingPerformanceoftheDistributionEconomy
Thedistribution(urban)freightsystemisusuallyoverlooked,despitethefactthatitcan
representthevastmajorityofthefreighttrafficinaregion.Thistrafficincludesfreightand
servicestripstocommercialestablishmentsaswellasresidentiallocations.AsdiscussedinPart
Iofthispaperseries,insomecases,internaldistributioncanrepresentupto80%ofthefreight
traffic1andareducednumberoflocations(largebuilding,conglomerateofestablishments)
withinanurbancoremaycouldgeneratemorefreighttrafficthanaseaportorairport2.
Transportationpolicyshouldensurethatfreightismovedasefficientlyaspossible,as
hamperingtheflowofcargoisboundtohaveanegativeeffectontheeconomy.Improvingthe
efficiencyofthesystemguaranteesthatfreightshipmentsarereliableandarriveontimeso
thattherearenoeconomiclossesduetolostsales.Inaddition,reliableoperationswould
increasebusinessthroughputbyanefficientsupplyofrawmaterials.Arecentprojectfunded
bythe(TransportationResearchBoard)NationalCooperativeFreightResearchProgram
(ProjectReport33)conductedanin-depthanalysisofthevariouspublicandprivatesector
strategiesthatcouldbeimplementedtoimprovefreightsystemsperformanceinmetropolitan
areas3.Thereportproducedacomprehensiveclassificationandcriticalexaminationofthe
nationalandinternationalevidenceconcerningtheiroverallperformance.Morethan40main
strategiesarediscussedandgroupedintosevenmajorcategories.Advantages,limitations,
planningneedsandeffortsarediscussedforeachofthestrategies.Theserangefromthose
addressingsupplyatoneendanddemandattheotherend.Operationalandfinancialstrategies
areinthemiddleofthecontinuum.Thecategoriesinclude:InfrastructureManagement;
Parking/LoadingAreasManagement;Vehicle-RelatedStrategies;TrafficManagement;Pricing,
IncentivesandTaxation;LogisticalManagement;andFreightDemand/LandUseManagement
(seeFigure1).
1
http://scagrtpscs.net/Documents/2016/draft/d2016RTPSCS_GoodsMovement.pdf
Jaller, M., X. Wang, and J. Holguín-Veras (2015). Large Urban Freight Traffic Generators: Opportunities for City
LogisticsInitiatives.JournalofTransportandLandUse(JTLU),8.1,1–17
3
http://onlinepubs.trb.org/onlinepubs/ncfrp/ncfrp_rpt_033.pdf
2
9
• RingRoads,UpgradedInfrastructure,IntermodalTerminals
• Removalofgeometricconstraints,rampsforforklifts
InfrastructureManagement
• On-streetparking,loadingzones,reservationsystems
• Off-streetparking,enhancebuildingcodes,upgraded
infrastructure
Parking/LoadingAreas
Management
• Emissionstandards
• Lownoisedeliveryprograms
Vehicle-relatedStrategies
• Accessandvehiclerestrictions,truckroutes,lowemissionzones
• TrafIiccontrolandlandmanagement
TrafIicManagement
Pricing,IncentivesandTaxation
• Roadpricing,parkingpricing
• Recognitionprograms,certiIication,incentives
• Cargoconsolidation
• ITS,lastmiledeliverypractices
LogisticalManagement
Freight/LandUseManagement
• Off-hourdeliveryprograms,consolidation
• Landusepolicy,largetrafIicgenerators
4
Figure1:Urbanfreightstrategies Thereport,discussesthepotentialofsomeofthesestrategiestohelpalleviatemajorissues
suchascongestion,environmentalandhealthimpacts,andimprovequalityoflifeandthe
competitivenessoftheeconomy.However,thepotentialresultsfromtheimplementationof
eachstrategyaredependentonsoundplanningandimplementationefforts.Planningagencies
andprivatesectorbusinessesshouldcarefullyanalyzethefeasibilityandapplicabilityofthese
strategiestotheircontextandspecificissues.
Onekeyaspect,relatedtofreightefficiencyinurbanareasistheadequateallocationand
managementofparking,loadingandunloadingareas5.Inmanylocations,curbspaceis
requiredtoconductfreightoperations(freightpick-upsanddeliveries);butatthesametime,
otherusersareconstantlycompetingforthescarceresource.Inothercases,assigningthe
highestprioritytofreightmaystillrequireadditionaloperationalchangestoavoidtheissues
associatedwithurbanfreightparking.Freightparkingisakeyissuefortheindustrythat
extendsbeyondtheurbanenvironments.Thisissueshouldbeintheagendaofanyplanning
andtransportationorganization.Similardifficultiesareexperiencedwhenanalyzingnetwork
capacity.ExamplesofFDMincludeoff-hourdeliveryprogramswhichincentivizereceiversofthe
cargotoacceptdeliveriesintheoff-hours;andstaggeredfreightprogramsinwhichbusinesses
coordinatetheirdeliveriesorpick-upsthroughouttheday,ratherthanconcentratingthemin
specifictimeperiods(usuallyduringtrafficpeakperiods).Consideringtheexperiencesfrom
nationalandinternationalpilottestsandimplementationsprograms,VoluntaryOff-Hour
DeliveryProgramshavethepotentialtoplayakeyroleintheState’sefforttoimprovefreight
efficiency,astheyseektomodifyfreightbehaviors.IntermsofCLpractices,amongthevarious
alternatives,Receiver-ledconsolidationprogramsshowgreatpotentialastheyoffersimilar
4
http://onlinepubs.trb.org/onlinepubs/ncfrp/ncfrp_rpt_033.pdf
Jaller, M., J. Holguín-Veras and S. D. Hodge (2013). "Parking in The City: Challenges For Freight Traffic."
TransportationResearchRecord2379:46-56.
5
10
benefitstotraditionalcargoconsolidationschemeswhileovercomingsomeofthelimitations
andimplementationchallenges.Thefollowingsectionswilldiscussthesetwostrategies.
VoluntaryOff-HourDelivery(OHD)Programs(DemandManagement)
Off-hoursisusuallyassociatedwithlateeveningsandearlymornings,thoughitvariesfrom
industrytoindustry,geographiclocationandlanduse.Thisstrategyisbasedonavoluntary
programofpick-upanddeliveryoperationsintheoff-hours.Usually,participationisfostered
byofferingincentivestoreceiverestablishmentssothattheychangebehaviorsandallowtheir
suppliersorcarrierstomakeOHD.Althoughparticipationisvoluntary,asuccessful
implementationoftheprogramrequirespublicsectorsupport.AttheStateorFederallevel,
publicagenciesshouldincorporatethetypeoffundingandresourcesupportneededforthe
designandimplementationoftheprogramintothelegislation.Theprogramwillthenbe
designedandimplementedbylocaljurisdictions.Fundingandsupportwillbeneededforthe
developmentofthespecifictypesofprograms,thedesignoftheincentivescheme,stakeholder
engagementandoutreachactivities,andmoreimportantlyforthestafftoimplementthe
variousactivitiesassociatedwiththeprogram.Although,thereareanumberofsuccessful
experiences,carefuldesignandplanningwillrequireadditionalresearchtofullyunderstandthe
freightbehaviorsintheareasunderanalysis.Theresearchwillhelpidentifythepotentialtarget
marketsforimplementation,thetypesandlevelsofincentives,thebarriersfor
implementation,andtoidentifytheappropriateperformancemeasurestobeused.
Theresourcesrequiredfortheincentiveprogram,willdirectlydependonthetypeofOHD
program.Forinstance,thetypeofincentivesanalyzedintheliteratureincludethosethatare
continuouslyofferedthroughoutthedurationoftheprogram,andthosethataregivenasan
initialone-timeincentive.Incentivescouldbemonetaryorotherwise.Theprogram
implementationprocessinNewYorkCityevaluatedvarioustypesofincentives6.Themonetary
incentivesrangedfromaone-timeincentiveof$500toa$50,000incentivewithshiftpotentials
rangingfrom10%to30%.Theindustrysectorofthetargetedstakeholdersisakeyfactor
determiningthereachofanincentivepackage.Table2summarizessomeofthestudiesthat
haveinvestigatedthereceiverbehaviorinrelationtothelikelihoodtoparticipateinthe
program.Ingeneral,researchresultsshowthatfoodandretailrelatedindustriesaremore
likelytoparticipate.Similarly,
Table3showstheresultsfortwodifferent(butcontiguous)locationsinNewYorkCity.
ThevariousexperiencesandinternationalstudiesaboutthepotentialimplementationofOHD
programsindicatethatcarrierscanhavedirectbenefitsseenintheformofreductionsintravel
timesduringtheoff-hours(giventhatlowertrafficvolumesallowforhigherspeeds)7.InNew
YorkCity,modestshiftpercentagescanproducebenefitsof5%toallnetworkusers.Moreover,
6
Jaller, M., and J. Holguín-Veras (2013). “Comparative Analyses of the Stated Behavioral Responses to Off-Hour
DeliveryPolicies”.TransportationResearchRecord(TRR),JournaloftheTransportationResearchBoard.(2379):
18-28.
7
Holguín-Veras, J., K. Ozbay, A. L. Kornhauser, M. Brom, S. Iyer, W. Yushimito, S. Ukkusuri, B. Allen and M. Silas
(2011)."OverallImpactsofOff-HourDeliveryProgramsintheNewYorkCityMetropolitanArea."Transportation
ResearchRecord2238:68-76.
11
duringapilottestconductedintheCity,thetravelmeanspeedsfromthewarehousestothe
firststopinthedeliveryrouteimprovedby70%.Otherbenefitsinclude:
•
•
•
•
•
Reductionsinservice/deliverytimesduetonothavingtowaitfortheirdelivery/parkingspot;
Reductioninidletimessincetherewasnowaitforthereceivertoacceptthecargo;
Easy access to parking, loading and unloading zones closer to the establishment. This allowed the
carrier to unload and transport larger shipments, thus reducing service times, and in some cases,
tripstotheestablishment8;
Reductions in traffic infractions (with pre-implementation infractions in the order of $500 to
$1,000+pertruckpermonth);and
In some cases, travel time reductions allowed carriers to include additional stops per tour, thus
minimizingtheroutessenttothecity.Thistranslatesinhigherloadfactors,andassetutilization.
Theprogram,couldgenerateadditionalcostsforcarriersincludingwagedifferentialtodrivers
intheoff-hours;capitalinvestmentsininformationtechnologysystemstoimproveoperations,
e.g.,routing,dispatching,monitoring;andincreasedsecuritycosts.However,accordingto
interviewsandtheexperiencesoftheparticipants,theirbenefitswerehigherthantheincurred
costs.Itisimportanttorecognizethatsomecarriersarenotabletoparticipateinthistypeof
programs.Parcelandcourierservices,maynothavetheabilitytoparticipateduetotheir
customersunwillingnesstoparticipate,regulatoryconstraints,accessconstraints,andhoursof
operationsandservicerules,amongothers.
8
Jaller,M.,J.Holguín-Veras,andS.Hodge(2013).ParkingintheCity:ChallengesforFreightTraffic.Transportation
ResearchRecord(TRR),JournaloftheTransportationResearchBoard.(2379):46-56.
12
Table2:Summaryofbehavioralresearch9
Variables
Industry Sector
Food and beverage stores
Press and book
Clothing stores
Apparel manufacturing
Accommodation
Non-durable wholesalers
Miscellaneous stores
Performing arts
Furniture stores
Personal laundry services
Commodity Received
Commodity: Alcohol
Commodity: Wood Lumber
Commodity: Food
Commodity: Textiles/clothing
Commodity: Medical supplies
Commodity: Office supplies
Commodity: Paper
Incentive
Tax deduction
One-time monetary incentive
Trusted vendor
Shipping discounts
Public recognition
Business support
Other receiver attributes
Type of facility is single
External warehouse
Employment
Number of vendors
Number of deliveries
HV 2007
HV 2013
DOM-S 2013 DOM-B 2013
*
*
*
*
*
*
*
*
*
*
+++
*
+
++
*
+
+
+
*
-
+
+++
++
*
*
*
*
*
*
*
+++
++
*
*
++
*
*
*
+
*
+++
++
+
+
+
+
+
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
++
*
*
++
*
*
*
+++
+++
++
+
+
+++
*
*
*
*
*
+++
*
*
*
*
*
+++
*
+
+
*
*
*
*
*
-
*
++
*
*
*
*
*
*
*
*
Notation:(*)denotesnotconsideredornotfoundstatisticallysignificant.(-)denotesalownegative
effect.(+)denotesalowpositiveeffect.(++)denotesamoderatepositiveeffect.(+++)denotesahigh
10
11
12
positiveeffect.Notes:NewYorkCityHV2007 ;HV2013 ;DOM-S2013 thecaseofSantander;and
DOM-B2013thecaseofBarcelona.
9
Holguín-Veras, J., I. Sánchez-Díaz, M. Jaller, F. Aros-Vera, S. Campbell, C. Wang, and S. Hodge (2014). Off-Hour
DeliveryPrograms.CityLogistics:MappingTheFuture.E.TaniguchiandR.Thomson(eds).CRCPress,Taylor&
FrancisGroup,BocaRaton,Fl.
10
Holguín-Veras, J., M. A. Silas, J. Polimeni and B. Cruz (2007). "An Investigation on the Effectiveness of Joint
Receiver-Carrier Policies to Increase Truck Traffic in the Off-Peak Hours: Part I: The Behaviors of Receivers."
NetworksandSpatialEconomics7(3):277-295.10.1007/s11067-006-9002-7
11
HolguínVeras,J.,C.Wang,S.D.Hodge,I.Sánchez-Díaz,S.Campbell,S.Rothbard,M.Jaller,J.WojtowiczandR.
Marquis (2013). "Unassisted Off-Hour Deliveries and Their Role in Urban Freight Demand Management." (in
review).
13
Table3:ComparativeanalysesofthebehavioralresponsestoOHDindifferentgeographicareas13
R1: Tax deduction
for accepting OHD
Man.
Rec.
Notes:
Factors impacting the behavioral response to the policies
Industry Segment
Policy
+++
Bro.
Rec. Int.
++
--
R2: Shipping
C1: Requests from C2: Requests from
discounts for OHD customers and toll
customers and
savings
financial rewards
Man.
Rec.
Bro.
Rec. Int.
+++
+ (i)
Man.
Car.
Bro.
Car. / Int.
Man.
Car.
Bro.
Car. / Int.
+++ (ii)
++ (iii)
++ (ii)
+++ (iv)
++ (ii)
+ (v)
++ (ii)
+ (vi)
Wood/lumber
+
+
++
Medical supplies
+
+
+
Paper
+
+
++
Alcohol
+
++
-Food
+
+
Metal
+
++
+
Furniture
+
+
-Electronics
+
Stone and concrete
+++ --Textiles/clothing
+
+++
Construction and hardware
-++
-Office supplies
+
Petroleum/coal
++
Plastic/rubber
++
-Machinery
+++
Household goods
-Number of employees
++
+
+
++
Increased operational costs
-----Hours of operation
+
Shipments from NJ
++
Number of deliveries
+
Accesibility to building
------No control of delivery times
-Number suppliers
+
Truck drivers
++
Containers from Baltimore
++
Containers from Connecticut
-Trips to Manhattan
+++
Located in Brooklyn
--Time/distance to first stop
Trips to the Bronx and NJ
-Type of facility
++ (vii)
Line of business
--+++ (ix) +++ (x)
Delivering to the Bronx
Union regulations
-Parking related issues
-Most likely to accept OHD (+++) to Least likely to accept OHD (---)
(i) Only companies that receive and ship
(ii) Request from customers
(iii) Toll savings only for petroleum/coal, wood/lumber, food, and textiles/clothing
industries
(iv) Toll savings
(v) Financial reward for food, computer/electronics, and textile/clothing industries
(vi) Financial reward for machinery/automotive and paper industries
+
+
+
-
++
-
-
+
--
-+
+
-
+
+
-- (viii)
-- (xi)
---
-
(vii) Single
(viii) Headquarters
(ix) For shipper, 3PL, trucking, warehouse and
mover carriers
(x) For shipper, manufacture, trucking and
warehoue carriers
(xi) For Warehouse carriers
12
Domínguez, A., J. Holguín-Veras and Á. Ibeas (2012). "Receivers’ response to new urban freight policies."
Procedia-SocialandBehavioralSciences54:886-896.
13
Jaller,M.,andJ.Holguín-Veras(2013).“ComparativeAnalysesoftheStatedBehavioralResponsestoOff-Hour
DeliveryPolicies”.TransportationResearchRecord(TRR),JournaloftheTransportationResearchBoard.(2379):
18-28.
14
Inthecaseofreceivers,benefitsincludereliabilityimprovementsintheservicetimes,staff
optimization,andenvironmentalemissionsreductions,amongothers.Forthecaseswhenthe
establishmentsareclosedduringtheoff-hours,costsmaybeincurredtohirepersonnel.
Alternatively,unassistedoff-hourdeliveryprogramscanbedeveloped(useofdoubledoor
systems,closedcircuitTV,remoteaccesscontrol)14,15.
Anadditionalbenefitfromthestrategyistheimpactinthetrafficflowandparkingconditions
intheimplementationarea.AparkinganalysisinNewYorkCityrevealedthatabout25%ofthe
ZIPcodesinManhattanhaveademandforfreightparkingthatexceedcapacity.Moreover,the
studyanalyzedthebenefitsofOHDtomitigatetheparkingissues.Inadditiontoalleviating
congestionandparkingissues,estimatesforNewYorkCityshowthattheprogramcouldleadto
yearlyreductionsof202.7metrictonsofcarbonmonoxide;40tonnesofhydrocarbons;11.8
tonnesofnitrogenoxide;and69.9kgofparticulatematter16;similaranalysesfortheMexico
FederalDistrictareaindicatethattheprogramcouldhelpoverallemissionbetween.8%and4%
(seeFigure2)17.
Oneofthekeyaspectsoftheprogramisitsvoluntarynature.Onlythosebusinessesthatare
abletoparticipate(withorwithouttheincentivepackage)willdoit.However,thereareseveral
barriersthatcouldhamperparticipation:trafficconstraintsduringtheoff-hours(regulation
banningfreightvehiclesduringthoseperiodsoftime);limitedaccesstothebuildingor
businesses;staffingorscheduling;unionregulations;overtimecosts;driverissues;hoursof
servicerules;safetyandsecurityreasons.Asmentionedbefore,theresearchhaveshownthat
receiverparticipationisvitaltothesuccessoftheprograms,ascarriersdonothavetheability
toimposeoff-hourdeliverytimestotheircustomers.Itisnotrecommendedthatoff-hour
deliveriesbemandatedasitcouldintroduceinefficiencies,increasecostsandexternalities,and
reduceeconomiccompetitivenesstothosefreightoperationsthatcouldnotimplementthem.
Giventhebodyofknowledgeabouttheprogram,itcouldbeexpectedthatwithadditional
researchtoexplicitlyconsiderspecificfreightbehaviorsinCalifornia,theProgramcouldbe
designedandimplementedinarelativelyshort-term.Though,theprogramwouldrequirethe
involvementofalargenumberofstakeholderstoidentifyparticipants,conductplanningand
research,pilottesttheincentiveprogram,implementandmonitor.Thedesignmustalsopay
specialattentiontomitigatingpotentialnoisedisturbancesandcommunityperceptions.This
typeofFDMmustalsobeassociatedwithpassengerdemandmanagementstrategiesto
mitigatethepotentialissuesofinduceddemand.
14
Holguín-Veras,J.,R.Marquis,S.Campbell,J.Wojtowicz,X.Wang,M.Jaller,S.Hodge,S.Rothbard,andR.
Goevaers(2013).FosteringtheUseofUnassistedOff-HourDeliveries:OperationalandLowNoiseTruck
Technologies.TransportationResearchRecord(TRR),JournaloftheTransportationResearchBoard.(2379):5663.
15
Jaller,M.,X.Wang,andJ.Holguín-Veras(2015).LargeUrbanFreightTrafficGenerators:OpportunitiesforCity
LogisticsInitiatives.JournalofTransportandLandUse(JTLU),8.1,1–17.
16
Holguín-Veras, J., J.M. Wojtowicz, C. Wang, M. Jaller, X.J. Ban, F. Aros-Vera, S. Campbell, X. Yang, I.
Sanchez-Diaz, J. Amaya, C. González-Calderón, R. Marquis, S.D. Hodge, T. Maguire, M. Marsico, S. Zhang, S.
Rothbard, K. Ozbay, E.F. Morgul, S. Iyer, K. Xie, and E.E. Ozguven. Integrative Freight Demand Management in
the New York City Metropolitan Area: Implementation Phase. United States Department of Transportation, 2013.
17
Jaller, M., S. Sanchez, J. Green, and M. Fandiño (2016). Quantifying the impacts of sustainable city logistics
measures in the Mexico City Metropolitan Area. Transportation Research Procedia. (12):613-626
15
12.0%
30%
10.0%
25%
8.0%
20%
6.0%
15%
5%
10%
21%
5%
5%
4%
4.0%
2.0%
16%
16%
1.0%
0.8%
0.2%
0.8%
1%
0.0%
10%
9%
10%
5%
1%0%
0%
10%
0.15% 1% 1%
0%
RecutionsinVHT
ReductionsinVMT
250,000
PM2.5 (ton/año)
200,000
150,000
100,000
50,000
-
100
90
80
70
60
50
40
30
20
10
-
ReductionsinCO2
ReductionsinPM2.5
Figure2:ExamplepotentialbenefitsfromtheimplementationofOHD
Receiver-ledConsolidation(CollaborativeLogistics)
Thistypeofstrategiesseekstofosterbehavioralchangeswithinsupplychainsbytaking
advantageofthepowerofreceiverstopushforcargoconsolidation.18Theobjectiveofthe
strategyistoachieveareductioninthenumberofdeliveries.Thiscouldbeachievedby
18
Holguín-Veras,J.,Sánchez-Díaz,I.FreightDemandManagementandthePotentialofReceiver-LedConsolidation
programs.Transport.Res.PartA(2015),http://dx.doi.org/10.1016/j.tra.2015.06.013
5%
4%
1%
2%
CO2 (ton/año)
9%
16
1%
reducingthenumberofsuppliersorvendors,orbyfosteringtheuseofurbanconsolidation
centersfromtheexistingsuppliers.Thegeneralbenefitsassociatedwiththistypeofstrategies
includethosetothereceivers,suppliers,andthesystem.Receiversbenefitingfromhaving
consolidatedshipments,avoidingtheneedtodealwithmultiplevendors.Insomecases,the
canachieveeconomicbenefitsbybeingabletonegotiatepreferentialorvolumerates.
Suppliersandcarrierscanincreaseproductivity,withthenegativeconsequencethatsome
supplierswillbereplaced.Theoverallreductionindeliveries,willtranslateinreducedfreight
trafficandtheassociatedconsequences.
ThefirstcasehavebeensuccessfullyimplementedthroughtheimplementationofDelivery
ServicingPlans(DSP).19TheideabehindDSP,developedbyTransportforLondon,isthat
commercialestablishmentsinlargebuildingsorlargetrafficgenerators,orlargecorporations
withdecentralizedprocurementpracticesconducttripgenerationassessmentsandidentify
potentialsforconsolidation.InLondon,regulationrequiresthatnewdevelopmentspropose
constructionlogisticsplansandDSPs.However,theseplansarenotsubsequentlyenforced,and
landlordsormanagersmaynothaveincentivestoinvesttheresourcesrequiredfortheir
implementation.ForanimplementationinCalifornia,thepublicagenciescoulddevelop
incentivesschemestofostertheimplementationofthesetypesofplans.Successful
implementationsinlargebuildingshaveshowntheirpotentialtoreducethenumberoftruck
tripsgeneratedfrom20%to60%.20Consideringthatinlargedenseurbanareas,theremayexist
largetrafficgeneratorswhichcouldrepresentasignificantproportionofthetotalfreighttraffic
andassociatedexternalities,theseplanscouldhelpimprovethefreightefficiencyand
performance21.AnalysesofthepotentialforimplementationofthistypeofstrategiesinNew
YorkCity,showedthattheycouldreducetrucktrafficbetween6.5%and21%.
Publicagenciesshouldidentifythetypesofregulationsthatcouldfacilitatethedevelopmentof
thesetypesofstrategies,consideringthatthefocuswouldbeonthereceiverofthecargo.
Moreover,researchisstillneededtodesignprogramsthatconsiderthecharacteristicsand
behaviorsoftheCaliforniafreightsystem.
InternationalGateways
TheinternationaltradeeconomyisofhighimportanceinCalifornia,especiallyduetothesheer
volumeofcargohandledinSouthernCaliforniabytheSanPedroBayPorts.Approximately60%
oftotalwestcoastintermodalcontainerspassthroughthePortofLosAngelesandLongBeach,
andtheexceptionallybusyinternationalbordercrossingsbetweenCaliforniaandMexico.
Withrespecttotheseaports,alongwiththebenefitsofhandlingmorecontainersthanany
otherportcomplexinNorthAmericacomethelogisticalinefficienciesofwaitsinandaround
terminals,congestionatcorridorsfeedingthesegateways,andotherissuesintroducedby
19
Transport for London. (2013a). "Delivery Servicing Plans." Retrieved July 04, 2013, 2013, from
http://www.tfl.gov.uk/microsites/freight/delivery_servicing_plans.aspx.
20
Transport for London. (2013c). "A Pilot Delivery Servicing Plan for TfL’s Palestra Offices in Southwark: A Case
Study." Retrieved July 12, 2013, 2013, from http://www.tfl.gov.uk/microsites/freight/documents/20090921DSP-Palestra-Case-Study.pdf.
21
Jaller,M.,X.Wang,andJ.Holguín-Veras(2015).LargeUrbanFreightTrafficGenerators:OpportunitiesforCity
LogisticsInitiatives.JournalofTransportandLandUse(JTLU),8.1,1–17
17
labor-relatedfactors.Myriaddifferenttypesofinefficiencieswithinmarineterminalscanaffect
boththetrucktrafficandvesseloperationsatinternationalgateways.Forexample,although
non-recurrent,portdowntimescannegativelyaffecttheshippingcompaniesthatowndelayed
vessels.However,vesselsaretypicallyhandledefficiently,andmostoftheinefficienciesexistin
thetransferofcontainersfromtheterminaltodrayman.
Portterminalinefficienciescanbeexacerbatedbythearrivaloflargerships,coupledwiththe
rapidincreaseinpopularityofVesselSharingAlliances(VSAs).VSAsareagreatexampleof
collaborativelogisticsstrategies,whereanumberofindependentshippinglinesconsolidateto
shareassetsandmaximizetheuseoftheirresources.Whilelargershipsandalliancesare
tremendouslyimportantimprovementsinefficiencyforoceancarriers,theycanpose
additionallogisticalchallengesformarineterminals.Alargevesseldischargingcargofrom
multipleoceancarrierscancomplicateterminalmanagement,aseachshippinglineinan
alliancemayhaveitsownterminalagreements,truckingcontracts,dispatchingagreements,
railroadagreementandoperationsmanagement.Insomecases,oncethecontainersare
unloaded,allsynergiesdisappear.Theselargevesselscanalsocreatecargosurgesofmorethan
10,000containermovespercall.ThisisalsocoupledwithVSAshavingasmanyassixcarriersin
onevessel(withsomeothereffectssuchasthescatteringofcontainersacrossmultiple
terminals).Thecallsurgescanresultinanincreasednumberofcontainerrepositioningmoves
withintheterminalsbeforetheboxesaredeliveredtoatrucker,furtherincreasingterminal
congestion.Whenthisprocessisrepeatedweekafterweek,itcanmakethedeliveryof
containersmorecomplex,costly,andinefficient.
However,asVSAsarebecomingthenorm,andthegreatefficienciesandadvantagesoflarger
vesselsareinternalizedintothesupplychain,marineterminalsandpublicportauthoritiesare
workingeffectivelyandefficientlyinordertohandletheincreasesindemand.Positive
examplesresultingfrompreparedness,planningandcollaborationincludetherecent
experiencesfromportcallsof15,000and18,000TEUvessels.Within10daysinDecember
2015,thePortofLosAngeles(POLA)AMPTterminalhandled2ofthelargestvesselsevertocall
aportintheAmerica’s(15,000+18,000TEUvessels);inFebruary2016,thePortofLongBeach
(POLB)PCTterminalPCTterminalhandledtheBenjaminFranklin,a18,000TEUvesselaswell.
AccordingtoPortAuthorityofficials,all3vesselcallswereextremelywellcoordinatedwithall
supplychainpartners,includinglabor,andnocongestionwasexperienced.
Giventhesechallenges,itisimportanttodevelopstrategiestofostercollaborationbetween
beneficialcargoowners,portterminals,thetruckingandrailindustry,equipmentproviders,
andancillaryfacilitiessuchaswarehousesanddistributioncenters.Althoughthesewouldbe
privatedriveninitiatives,publicfundingorincentivescouldbeusedtohelpsupportthe
developmentofcollaborativerelationshipsinstrategicportionsofthesupplychainthatcould
helpmaximizeassetutilization.Inaddition,fundscouldbeallocatedtoinvestigateandidentify
thesuccessfactorsoftherecentmega-shiphandlingexperiencesmega-ships.Thefollowing
sectionsdiscusssomestrategiesthatcouldbeusedtohelpmitigatesomeoftheissues
previouslydiscussedandthoseinPartI.
18
Development of a Chassis Pool of Pools Fully Integrated System (Collaborative
Logistics)
Chassismanagementhasbecomeamajorissuefortheintermodalsupplychain,bothinterms
ofchassisavailabilityandalsolevelsofutilizationacrossthesupplychains.Theseissues
primarilyemergedaftermanyoceancarriers´decidedtonolongerownandmanagetheirown
proprietarychassisfleets.Ironically,manyofthesenewinefficienciesaretheresultofocean
carriers’movetowardsgreatersystemefficiencieswherebytheyremovedequipment
ownershipbarriersandterminalspecificityissues.Theseissuespersistedintheintermodal
systemasaresultofthelines’traditionalchassisownershipandprovisionmodel.Forpurposes
ofthisstrategy,itisimportanttonotethatnomatterwhoownstheequipment,chassisare
criticaltointermodalism,anditisimpossibletomovecontainersbytruckon-roadwithout
them.Asaresult,beingabletoreducethetimeandcostsofchassismanagementby
eliminatingshortagesormaintenanceproblemscouldimprovesystemefficiencyandbecomea
commercialadvantageintheservicesprovided22.
Tocopewithshortagesofchassis’,andalsogeneralavailabilityproblems,thePoolofPools
(PoP)initiativewascreated.ThisprivateinitiativeiscomprisedbytheDirectChassisLinkPool
(DCLP),TracPacificSouthwestPool(TPSP)andFlexi-VanLosAngelesBasinPool(FLBP)23.The
PoPhavealleviatedtheproblembyprovidingmorethan81,500chassistobeused
interchangeablyandanewconfigurationofsuppliers.TheportsofLosAngelesandLongBeach
utilize31,866chassisdailyrepresenting40%ofthetotalfleet.ThePoPhavehelpedreduce
costsinoperatingprivatefleetsandhasaninterchangeablepooltobeutilizedamongall
stakeholdersreducingflips24,decreasingtimesandfuelconsumption,aswellasgeneratinga
collaborativeenvironmentwithstakeholderstoshareassetsandinformationabouttheir
operations.However,thePoPexperiencesanumberofissuesincluding25:
• “Thenumberofchassisdwellingonterminalforgreaterthan60daysisalmost7,000units.
Weneedhelpingettingtheseunitsbackintocirculation.”
• “ThenumberofOutofServicechassisisstillover5,000.Weneedhelpingettingtheseunits
repairedandbackintoservice.”
• “Repositioningofchassiscouldbelimitedduringthisperiod,PoolofPoolswillneedeachMTO
toreleasesurpluson-terminalchassis.”
These,amongotherissues,provideimprovementopportunitiesforthePoP.Therefore,this
strategysuggests:
TheDevelopmentofaChassis-PoPfullyintegratedsystemthatseekstotransitionthecurrent
PoP to an information and management system that provides the adequate type, quantity
andqualityofchassisavailable,andofferssimplifiedadministrativeandbillingservices.
22
http://www.fmc.gov/assets/1/Page/PortForumReport_FINALwebAll.pdf
http://www.morethanshipping.com/the-gray-chassis-pool-and-what-it-means-to-you/
24
“Needtotransferacontainerfromthechassisitisrestingupontoanotherchassis”,NCFRPReport20
25
http://www.pop-lalb.com,accessedNovember30th,2015
23
19
Aneffectiveprovisionofchassisrequirestheoptimalandreliableprovisionof“certified”
equipmenttotruckers.Tobesuccessfulinthelongrun,thestrategyrequiresthattheprivate
andpublicsectorworktogethertocreateareliableinformationandmanagementsystemthat
providesanadequatequantityofchassisinoptimalconditions.Theschemeofa“graypool”
requiresfullyinterchangeableequipment,simplificationofmanagementandbilling,goodand
regularmaintenanceandrepairofassets,andthedevelopmentofrobustinformationsystems
whichprovidetoparticipantsinthesupplychaindataregardingequipmentavailabilitytimely
andaccurately.Havingthisinformationabouttheincomingequipmentcouldhelpdetermine
thereconfigurationofchassisatterminalsandatvirtualandoff-siteyards,andimprovelevelof
service.Inaddition,theaveragestreetdwelltimeforchassisis4.5days,thusreducingdwell
timewillimprovetheavailabilityofchassis26.
AreportreleasedbytheFederalMaritimeCommission(FMC)inJuly201527,containsan
overviewofdiscussionsfromdifferentstakeholdersaboutportcongestionandsupplychain
issues.Participantsagreedontheneedofmore“graypools”toprovidechassisinteroperability.
Graypoolsaremosteffectivewhentherearen’trulesorprovisionslimitingmotorcarriersfrom
utilizinganyparticularchassis,orchassisprovider,andmotorcarriersareabletopickthe
providerfromthepoolthatbestsuitstheirrequirements.Thistypeofequipment
intermodalismispossibleonlywhenfacilitatedbylegalinterchangeagreements.Inthisregard,
thereisaUniformIntermodalInterchangeandFacilitiesAccessAgreement(UIIA)28whichisan
industrycontractbetweentruckersanddrayagecompaniesandwaterandrailcarriersand
leasingcompaniesthatservesasastandardinterchangeagreementforequipmentbutisnot
appliedforchassis.ThePoPhasinstituteditsowninterchangestandardstofacilitateitspool.
TheimprovedChassis-PoPshouldcombineboththecollaborationofdifferentleasing
companiesthatshareacommoninterchangeableagreementofequipmentbutcompetingin
serviceandprice,andtheabilitytoimprovethelandoperationsattheportfacilitieswithina
separateoff-terminalyardoryards.Ingeneral,itwouldhelpreducethenumberofflips
betweentrucksandchassisandreducethetimesofrepairandinspection.Flipsandtripsto
deliverchassisthatbelongtooneterminaloroperatorisaninefficiencyofthecurrentsystem.
Moreover,itwouldhelpreducetruckturntimesatmarineterminals,increasingthenumberof
turnspervehicle,reducethenumberofmovementsperchassis,andthenumberofoutof
servicechassis.
ThenewChassis-PoPintegratedsystemwillalsohelptoimproveroadabilityinadditionto
relievingcongestionandinefficiency.TheFederalMotorCarrierSafetyAdministration
(FMCSA)29requireschassistobeinoptimalconditionsbeforeinterchange,buttruckersat
marineterminalsareinconveniencediftheyareonlytoldoftheneedtomakerepairsatthe
roadabilitygateaftertheyhavealreadyreceivedthechassis.Theproblemhereoccurswhen
26
JournalofCommerce(JOC)(2015),“ExtendedfreetimecontributestochassisshortagesinLA-LongBeach”,
October1,http://www.joc.com/port-news/us-ports/extended-free-time-contributes-chassis-shortages-la-longbeach_20151001.html,accessedOctober2015
27
U.S.ContainerPortCongestionandRelatedInternationalSupplyChainIssues:Causes,Consequencesand
Challenges,2015
28
http://www.uiia.org/about/index.php
29
https://www.fmcsa.dot.gov
20
roadabilityinspectionsareperformedafterthechassisisprovidedtothetrucker.There’sno
inboundchassisinterchangeinspection,becausetruckersmustreportchassisconditionsor
problemswhentheydroptheequipmentasrequiredbytheFMCSA,butmostdonot.Without
theserequiredreportsbeingfiled,noqualityassurancesystemexiststoensurethatchassis
providedareingoodconditionsuntilitisprovidedtothenexttrucker.Mostchassisare
repairedonlyifatruckerdecidestotakeittotheroadabilitygatewhichimpactstheirhoursof
service,becausetheyhavetowaitforthemtobeready.Underthisstrategy,because
roadabilitywillbeimproved,itwillstoptheinefficienciesthatresultfromachassisinbad
conditionjustgoingbackintothepoolandbeingdirectedtoanothertruckerwhichwillhaveto
facethesameproblemsanddelay.
The POLA/POLB C-PoP is currently developing and implementing management systems to improve
operations.Also,theFMCsanctionedPOLA/POLB“SupplyChainOptimization”effortisworkingwiththe
C-PoP to explore system improvements, including possible integration with other intermodal logistics
managementsystemssuchas:eModalandtheUSDOT’sFRATISproject,currentlyinthedemonstration
phase. The POLA/POLB are also working with LA METRO and CARB for incorporation of the
aforementionedsystemsand“connectedvehiclesystems”intotheproposedState’sCARBSustainable
FreightActionPlan(SFAC)PilotProject,beingconsideredforfunding.
Asdemonstratedbythecurrentefforts,thesuccessfulimplementationofthisstrategyand
expansiontootherportswouldrequirecollaborationbetweenvariousstakeholders.Moreover,
theeffectivenessofthesystemtomaximizeassetutilizationrequiresintegrationwithother
managementandinformationsystems,withinthemarineterminals,andparticipating
stakeholders.Publicagenciessupportforpilottestingwillbecrucialinthedevelopmentand
evaluationofsuchintegratedsystems.
ImprovementofTrafficMitigationFeePrograms(DemandManagement)
TheTrafficMitigationFee(TMF)Program,PierPass,hasbeenasuccessintheSanPedroBay
ports.Thisprogramfostersfreightoperationsintheoff-hours.Since2005,asaresultofsevere
congestion,theOffPeakprogramhasbeeninplaceandaTMFhasbeenchargedtocontainer
movementsduringthedayshiftstopayforthenighttimeshifts.Theprogramhandles17,000
trucktripsonaveragepernightduringthe6pmto3amshift;thisrepresentsaround55%of
thedailytrucktrips30,31.In2015,thePortofOaklandannouncedthatitsmarineterminalsare
consideringtheimplementationofasimilarOffpeakprogramcalledOakPass.
Accordingtoapublicreport,whilemanycarriersexpresswillingnesstomovetheiroperations
tonighttimedeliveries,theredoesn’tappeartobeacorrespondingresponseonthesideofthe
businessestooperateduringoff-peaknighttimehours32.Duringtheinterviewsconductedas
partofthispaper,itwasidentifiedthataboutonethirdofthewarehousesintheSCAGregion
operateintheoff-hoursmainlybecausetheyarepartofthePierPassprogram.Byperforming
30
PierPASS(2015),“OffPeakInformation”,http://www.pierpass.org/offpeak-information/,accessedOctober2015
http://www.pierpass.org/wp-content/uploads/2015/07/2014-Operational-Costs-and-Financial-Report_Final.pdf
32
TheTiogaGroup,Inc.–DowlingAssociates,Inc.(2008).Truckparkingfacilityfeasibilityandlocationstudy.
Availablefrom:
http://www.alamedactc.org/files/managed/Document/10635/Truck_Parking_Facility_Feasibility_and_Location_
Study.pdf.
31
21
operationsduringthesetimes,theprogramisabletoimproveoperationsrelatedto:timespent
waitingbetweendispatches,timespentwaitingtoentertheterminal,andtimespentinsidethe
terminaleitherpickingupordroppingoffaload.Moreover,reducedtrucktrafficduringthe
peakhoursimprovesoperationstoallusersinthenetwork.Consideringthatabout95%ofall
thetrucktripsto/fromthePOLA/POLBareto/fromcontainerterminals,anyreductioninthe
numberoftripsduringthedaytimewouldhaveasignificantenvironmentalandtrafficimpact.
DespitetheinitialsuccessofPierPass,therearecurrentissuesaffectingitsperformancewhich
couldbeoptimized.Thefirstissuehastodealwiththeperceptionoftruckdriversaboutthe
directbenefitsofoperatingatthenighttimes.Duetoclaimsofinsufficientdemandtomeetthe
increasedcostsofoperatingintheoff-hours,anumberofportterminalshavereducedthe
numberofnight(andweekend)shiftsprovided(only4-5terminals).Insomecases,this
reductionofshiftshaveresultedinperceiveddiminishingbenefitsfromcustomersduringthese
timeperiods.ThereductionindirectbenefitscoupledwithanincreaseintheTMFof$69.15
perTEU,havepromptedcriticismtotheprogram.Effortshavebeeninvestedbytheterminal
operatorstoexplainandsupportthefeeincreases33,34.
Inaddition,duetothefixedandstaticformatoftheprogram,queuesformoutsideterminals
beforethenightshifts(bythenumberofdriversthatwanttotakeadvantageofthedifferential
pricing).Therefore,withtheimprovementofPierPassitisalsoimportanttoimprovethe
efficiencyoftruckdwelltimesandvalidationsprocesses.AccordingtoPierPASS,usualtruck
turntimesareatabout60-70minutesaverage,40minutesforapick-uptransactionand20-30
foradrop-off.Butifsomeinformationaboutthetruckisnotfullysupportedby
documentation,onlineappointmentvalidationoranyotherissuethatcouldraise,truckersare
requiredtogotothetroubleticketwindowswhichcantakeonaverage1hour(butcouldbe
muchlonger).AspartoftheSupplyChainOptimization(SCO)effort,thePOLA/POLBare
workingwiththeMetropolitanTransportationOrganizationandothersupplypartnersto
exploremodifications/improvementstothePierPasssystem,includingbettermeasuringof
turntimesandappointmentsystems.Regardingturntimes,thePOLA/POLBareconsidering
partneringwithanewsystemsoontobelaunchedbytheHarborTruckingAssociation,which
utilizesasmartphone/tabletapplicationtoconstantlytracktrucks,andproduceturntimes.
AdditionallythePOLA/POLBisconsideringincorporatingthissystem,intotheaforementioned
CARBSFACPilotProject.
Ingeneral,theprogramhasprovidedbenefitstothesystem,andhasshownthesuccessof
implementingaTrafficMitigationFeethatischargedtocargoownersinsteadtothetruckers
(asitistypicalinotherpricingorchargingschemes).Therefore,thestrategyputforwardhere,
seekstoimprovetheTMFProgram.Thiscouldbeaccomplishedby:
•
Addressing inefficiencies within the marine terminal to increase the benefits experienced by the
Program users. Inefficiencies in marine terminals exist regardless of the time period, therefore, to
increasethebenefitsfromtheProgram,therootcauseoftheseinefficienciesmustbeaddressed.
33
Rule7oftheWCMTOASchedulereads:“…theFeeshallbeadjustedannuallytoreflectincreasesinlaborcosts
basedonPacificMaritimeAssociationmaritimelaborcostfigures.”Theapproximate3.5%increaseintheTMF
reflectsthisfee.ItispartofongoingrateincreasesappliedperthisRule.
34
http://www.pierpass.org/wp-content/uploads/2015/11/PierPass-Financial-Overview_10-21-2015.pdf
22
When looking at system level improvements, terminal operators are best positioned to engineer
solutions.Portscanhelptofosterterminaloptimizationandbestpractices,butnon-operatingports
cannot develop and implement a program. As part of the SCO effort, the POLA/POLB is exploring
“push(asopposedtopull)terminallogisticsITsystemstoconveycontainersto/fromdrayman.
Revisingthecurrentpricingscheme.Amoredynamiccongestionmanagementpricingschememay
provemoreoptimalatreducingcongestionandimprovingefficienciesduringboththedayandoffpeak hours. These charges could be lower during periods of lower utilization during the day and
some minimal charges could be instituted for periods of high demand and utilization during offpeak. Although a fully dynamic pricing scheme would optimize the port (terminal) utilization, it
could create confusion among the various stakeholders. An alternative would be to identify
block/segments of time, and charge them differently. The development of an appropriate pricing
schemerequiresadditionalresearch.
Normalizethemultipleexistingindustryperformanceandefficiencyindicatorsinordertomeasure
improvementsordegradationsofoff-peakprograms.
Implementingappointment/reservationsystems.TheTMFProgramcouldalsobecombinedwiththe
implementationofappointmentandreservationsystems.
•
•
•
Implementationofthesestrategicchangeswouldreduceturntimesoftrucksandimprove
terminalefficiency.Thisinturn,wouldhelpreducecongestion,truckwaitingtimesatthe
queues,andincreasethroughput.Someofthechangesdescribedbelowcouldbeaddressedin
theshort-term,thoughcarefulplanningandresearchaboutoptimalprogramdesigncould
requireadditionaltimeandfundingsupport.Publicagenciescouldprovidethefundingand
planningsupportforthedevelopmentoftheimprovedprogram,andatthesametime,work
withPortAuthorities,terminalsandotherstakeholderstoidentifyadditionalopportunitiesfor
perceivedbenefits.Ifadynamicsystemisfoundtobetheoptimalpricingscheme,adata
collectionandinformationdisseminationframeworkandsystemmustbedeveloped.Thiscould
requireinvestmentandplanningbeyondthemarineterminals,thusrequiringahigherlevelof
coordination,planningandfunding.
Tobesuccessful,thereisaneedforsomespecificcommonmetricstomeasuretheturntime.
Aswiththecurrentsystem,queuesoutsidetheterminalconstituteapotentialunintended
consequence.Theabilityofthesystem,theincentives/penalties,andtheimplementationof
thereservationssystemcouldalleviatethoseissues.Oneimportantaspecttobeconsidered
whendesigningthepricingschemeishowthisFDMstrategywillaffectthecorridorsand
locationssurroundingthemarineterminals.Researchtoinvestigatesuchpotentialoutcomesis
recommended.
ImplementAdvancedAppointment/ReservationSystems(DemandManagement)
Itisclearthattruckingisoftencharacterizedasthemostirregularandunpredictablemodeof
transportinport-relatedoperations.Inastudyontruckannouncementtimes,vanAsperenet
al.notesthat“…ifweconsiderthedifferenttransportmodesacontainerterminalhastodeal
with,thenroadtransportbytruckistheleastcoordinated”35.Despitealackofcoordination
betweentruckingcompaniesandotherpartsintheintermodalmachine,generalresearch
resultshaveshownthattotalnumberoftruckarrivalstendtofollowcertainpatterns.Whilea
35
van Asperen, Eelco, Bram Borgman, and Rommert Dekker. “Evaluating Impact of Truck Announcements on
ContainerStackingEfficiency.”Springer.19Oct2015.Web.23July2011.
23
specifictruckmaynotbepredictable,truckarrivalnumbershavebeenshowntopeakduring
certainhourwindowswithinaday.Thisinefficientcharacteristiclendsitselfwelltobeing
addressedbytruckschedulingstrategies.
Consequently,thestrategyputforwardhereseekstodevelopandimplementandadvanced
appointmentandreservationflexiblesystemthatintegrateswithotherinformationsystems
tomaximizeassetutilizations.However,developingsuchasystemrequirestheanalysesof
variousoperationalaspectsandpotentialconsequencesresultingfromthesystem’s
implementationandtheresearchabouttheeffectivenessofappointmentsystemsisnot
conclusive.
Manystudieshavechosentousetruckline(orqueue)lengthsand/ortruckturn-around(or
waiting)timesasmeasurementsofefficiency.Reducinglinelengthsandoverallwaittime
lessensorerasesthephysicalrepresentationoftrucktrafficoutsideofports,henceaddressing
themostvisibleproblemwithcontainer-movementinefficiency.Appointmentwindowshave
beenapopularsolution,underliningtheultimategoalofeveningouttruckappointmentsover
thedayinordertotakeadvantageoflessbusytimeperiodsandavoidpeakdemand.Current
trendsindicatethattruckswillberequiredtoscheduleappointmentsin10outthe13container
terminalsintheSanPedroBaybytheendofnextyear36.
InaMarseillesstudy37,authorsattributethesuccessoftheirtruckappointmentsystem(TAS)to
thefactthatthesystemwaswellthought-outandthorough,ratherthanmyopic.Theauthors
ofthestudynotethatpreviousstudieshavefailedtoincludeallofthepiecesofasystemthat
needtobeconsideredinordertoeffectivelyimplementaschedulingstrategy.Intheirstudy,
theyfocusedonthesupply-demandrelationshipbetweentruckorvesselarrivalsandcargohandlingequipmentavailabilityattimeofarrival.Thiscouldbeevaluatedforapplicationin
Californiaports.
Accordingtoareportthatanalyzedinitialappointmentsystemsimplementedinsome
terminalsinCaliforniaindicatedthat“…theestimatesofpotentialturntimesavingsfrom
appointmentssuggeststhatalargeproportionoftripswouldhavetouseappointments,and
appointmenttripswouldhavetobegivensomeprioritytorealizesignificanttimesavings.Itis
onlyundertheseconditionsthatanappointmentsystemwouldreducetruckqueuingenough
toresultinlowertruckemissions...”38
Otherstudieshaveshownnoimpactorhaveevenshownanegativeresult.Incontrastwiththe
successseenatMarseilles,Le-Griffinetal.39concludedthataddressingtruckcongestionby
36
http://www.polb.com/news/displaynews.asp?NewsID=1491,accessedOctober2015
Zehendner,ElisabethandDominiqueFeillet.“Benefitsofatruckappointmentsystemontheservicequalityof
inlandtransportmodesatamultimodalcontainerterminal”.EuropeanJournalofOperationalResearch.19Oct
2015.Web.15July2013.
38
Giuliano,G.,&O’Brien,T.(2007).Reducingport-relatedtruckemissions:Theterminalgateappointmentsystem
atthePortsofLosAngelesandLongBeach.TransportationResearchPartD:TransportandEnvironment,12(7),
460-473.
39
Le-Griffin,HahnD.,LamMai,andMarkGriffin.“ImpactofcontainerchassismanagementpracticesintheUnited
States on terminal operational efficiency: An operations and mitigation policy analysis.” Research in
TransportationEconomics.19Oct2015.Web.20July2011.
37
24
makingappointmentstolettrucksthroughterminalentrancegatesmorequicklysimplyshifted
theinefficiencyofthesystemfromoutsideofthegatetoinsideofthegate.Unintended
consequencesmustbeconsidered.Thisdemonstratesthattakingawaythemostvisible
representationofaproblem,suchastrucks,doesnotnecessarilymeanthatthatproblemhas
beenfixed,orthatanotherproblemhasnotbeencreated.
Historically,truckappointmentsystemshavenotbeenasappealingtoterminalsbecausetruck
queuesweremoreofaburdentotruckingcompanieswaitinginlinethantheywerefor
terminaloperatorsservingthoselines.Inaddition,itisclaimedthatbysettingappointments
inefficienciesareintroducedastheyareassociatedwithafixednumberoftransactionsina
day.However,asdemonstratedbytheMarseillesstudy,someresearchinrecentyearshas
beguntohighlighttheimportanceofconsideringtheinterconnectionofallmodesoperating
bothinandoutofaterminal.Thevalueincoordinationisstartingtobemorestrongly
recognized
Astruckingappointmentsystemshavebeenevaluatedinmanystudiesaroundtheglobe,
investigatingtheirfeasibilityinreducingcongestionandimprovingefficiencyinCaliforniaports
wouldbewise.Developingsuchsystemrequiresanintegratedeffortbetweenthepublicand
privatesector.Itisimportanttoidentifytherootcausesfortheirregularandunpredictable
operationsbothinandoutofthemarineterminals.Thiswouldallowdefiningtherulesand
logicsoftheflexiblesystem,anddefiningtheappropriatetimewindowsconsideringthe
uncertaintiesabouttheexacttransactiontimes.Duetothemixedresultsreportedinthe
literature,appointmentsystemsshouldnotbeimplementedlightly,rathertheyshouldbethe
resultofsignificantresearchandplanningefforts.Thepublicauthoritiesshouldprovidethe
support(funding,accesstoinformation,stakeholderengagement)neededforthoseactivities.
Oneimportantaspectthatwouldrequirecarefulattentionishowtodealwiththepenaltiesand
enforcementofappointmentsandreservations.Similarlyaswiththeotherstrategies,the
appointmentsystemshouldbeintegratedwiththeothermanagementsystemsputinplaceby
someofthesystemstakeholders.
Nevertheless,itisexpectedthatanappointmentsystem(grantedthatterminaloperationsare
optimized)wouldhelpmitigatesomeoftheinefficienciescurrentlyobserved.Theappointment
systemneedstobeflexibleenoughtohandletheoperationalneedswhenimplementing
strategiesrangingfrompushsystems,topeel-offandfree-flow.
Asmentionedbefore,aspartoftheSCOeffort,thePOLA/POLBisworkingwiththeMTOand
othersupplypartnerstoexploremodifications/improvementstothePierPasssystem,including
appointmentsystems.Anexistingintermodallogisticssystem,eModal,whichhasbeenin
existenceandusedbytruckingcompanies,terminaloperators,customsbrokers,3PL,etc.,
since2002,providesappointmentsystemsforseveralofthePOLA/POLBterminalsalready.
Emodalwillbeexpandingtheirappointmentsystemstomoreterminalsin2016.The
POLA/POLBisworkingwitheModalandtheterminaloperatorstohaveauniversalanduniform
systeminplaceinthenearfuture.Additionally,thePOLA/POLBisconsideringincorporatingthis
systemintotheaforementionedCARBSFACPilotProject.
25
Developing an Integrated System for Dray Operations and Services (Collaborative
Logistics)
Thisstrategyseekstofosterthedevelopmentofcooperationandcollaborativeagreements
betweendrayageoperators,beneficialcargoowners,andinsomecases,shippinglinesand
portterminals,toofferasharedservicethatcanfacilitatepracticessuchas“freeflow”or“peel
off.”ThemainobjectivewouldbetooptimizecontainerflowinPortTerminals.Adray
agreementdoesnotnecessarilyinvolvetheprovisionofapoolofvehicles,butitwouldrequire
theimplementationofinformationsystemsthatallow,amongotherthings,containervisibility
toentiresupplychains,realtimetrafficdata,roadsandterminalturntimeandqueues.
Inaddition,astrategylikethiscouldhelpwithnewportparadigmssuchaspushsystems.As
thenameindicates,inpushsystems,containersare“pushed”outoftheterminalinsteadof
beingpulledbybeneficialcargoownersattheirdiscretion.Thisinessencewouldhelpreduce
cost,increasecontainervelocityandtruckturns,improvereliabilityandpredictability,and
improvelaborandequipmentdeployment.
Thesenewpractices,pushsystems,peel-off,dray-off,andfreeflowaresimilarinthesensethat
theytrytomoveboxesoutoftheterminalmoreefficiently.Howevertheymayimpose
additionalchallengestoindividualoperators,especiallydrayagecompaniesthathavecontracts
withspecificclients.Pushsystemsandpeel-offtypeofsystemscouldbeimplementedtogether,
aspushcouldbeimplementedforallsizedshippers,andpeel-offforlargebeneficialcargo
owners.Thesuccessofthesestrategiesheavilydependsonthefluidityofthesystemwhichis
affecteduponinlandfacilityoperationsandcapacity40.
ThecreationoftheDraysystem,wouldworksimilarlyasthepeel-off/dray-offcostmodel,but
extendedtotheintegratedoperationswithotherstakeholdersinthesupplychain.Peeloff/dray-offmodelsgenerallyassumethatthecontrolandownershipofeachboxfromshipto
doorisallmanagedbyasingleagencythatminimizesoverallcosts.Ingeneral,themodel
estimatestotalterminalanddrayagecostsbasedonunitcapitalandoperatingcostsandtypical
productivityfactors
Thepublicsector,asinthecaseoftheChassis-PoP,shouldfosteracompetitiveand
collaborativeenvironment.Moreover,investmentswouldbeneededtodeveloptheintegrated
informationsystemthatshouldbecompatiblewithsolutionssuchastheCaliforniaFreight
AdvanceTrafficInformationSystem(FRATIS),andothercommercialsystems.Apilottestatthe
PortofLosAngelesshowedthatusingacommercial(onlineandapp-basedbrokerage)system
andafreeflowstrategycouldincreaseproductivityby500%(250containerdeliveriespershift
vs.50)andreducetheaveragedriverturntimesinhalf(42minsvs.85mins).41
Animportantaspectofastrategylikethiswouldbetheneedfortheimplementationof
incentivesorthecreationofanappointmentsystemthatiscapableofhandlingthedifferent
40
Davies,P.andM.Kieran(2015).PortCongestionandDrayageEfficiency.Presentationatthe2015INUFMetrans
Conference.LongBeach,CA.
41
Harman, D. (2016) On-demand Load Matching for Trucks. Presentation at the 2016 TRB Annual Conference
Urban Freight Workshop on On-Demand Technology and Sharing Economy for Freight. Washington, D.C.
th
January10 .
26
requirementsofportrelatedactivities,dependingonthetypeofoperationalstrategyinplace.
Moreover,thistypesofsystemsthatrelyoninformationsharingandtechnologiesneedtobe
developedconsideringdataaccessandcustodial,aswellastheframeworkfortheir
management.Whilethepublicsectorcouldnotmandatethecollaborationbetweendray
operatorsandservices,itcouldprovidethesupportfortheanalysisandresearchofeffective
incentiveprogramsthatfosterparticipationandabehavioralchange.
AspartoftheSCOeffort,thePOLA/POLBisexploring“push”(asopposedtopull)terminal
logisticsITsystemstoconveycontainersto/fromdrayman.
LoadMatchingandMaximizingCapacity(CollaborativeLogistics)
Ascargoratesareincreasing,portsarefacingchallengestomeetdemand.Schedulingarrivalof
shipsandaligningotherelementsinthesupplychaintoachieveagoodlevelofservicerequires
informationsystemsandcollaborationamongstakeholders.Oneoftheby-productsofan
effectiveandglobalizedcontainerizedcargoistheabilityofthesystemtokeepahealthy
numberof“empties”inthesystemandavailableforshippers.Thenumberofemptiesalso
reflectstherelativebalanceoftradebetweennations,whichisafunctionoftheinternational
economyandfactorsoutofthecontrolofanyoneseaport.AsaresultoftheUnitedStates’
currentimbalanceoftrade,forinstance,in2015atthePortsofLosAngeles,whileempties
accountedforonly2.8%ofimportedcontainerstheyaccountedfor57.3%ofallexported
containers(2.2millionTEUs).42Thetransportationoftheseemptycontainers,primarilybackto
theterminalforexport,requiretransportationservicestoandfromfacilitiesafteruse,but
thesearerepositioningmoveswhicharenotrevenue-generating,andalthoughneeded,the
transportofemptycontainerscanaddtototalsysteminefficiency.Someofthecausesof
emptycontainerinefficienciesarisefromsizeandtypeofequipment,lackofvisibilityand
collaborationwithinstakeholdersaswellasinformationsystemstotrackcontainers43.
Toremediatethisissue,LoadMatchingStrategiescouldprovidekeybenefits.Theobjectiveof
loadmatchingstrategiesistoreduceVMTassociatedwithemptytrips.Therearemany
variationsofloadmatching;examplesincludematchingemptycontainerswithloads;first
come,firsttakepickups;andplatformstomatchsmallloadswithavailablespaceincontainers
whicharenotalreadyfull.
Thesetypesofstrategieshavebeenimplementedwithsomesuccessinvariousregionsofthe
country.Forempties,empiricalevidenceindicatesthatitispossibletomatchbetween20-30%
ofthetrips.However,themainlimitationismostcasesisthepositioningcost,orthecostto
transporttheemptycontainerbetweenitslocationandthelocationofthecargo.Although,
analysesarestillneeded,thesecostscouldbeintheorderof$200-$300permovement.44
Therefore,thepublicsectorcoulddevelopanincentiveprogramtoincreasethelikelihoodof
matchingandthuscontributetoreducethenumberofemptytripsinthesystem.Considering
42
https://www.portoflosangeles.org/Stats/stats_2015.html
Lee,Meng,ed.,HandbookofOceanContainerTransportLogistics:MakingGlobalSupplyChainsEffective,
Switzerland,Springer,2015
44
Turman,R.(2015)SoutheastStreamline.Developersofload-matchingsystemforimportersandexportersonthe
EastCost.CoalitionofResponsibleTransportation.Personalcommunication.
43
27
thehighernumbersofemptiescomparedtoloadedoutboundshipments,thepotentialbenefits
offosteringthesetypesofstrategiesishigh.
Otherexamplesinvolvethedevelopmentanduseofinformationtechnologiestofacilitate
traditionalfreightservicessuchasfreightbrokerage.Thesetypesoftechnologyplatformsallow
participationfromcarriers,manufacturersanddistributors,freightforwarders,3PLs,brokers,or
businessesthatregularlyorsporadicallyhavefreightneeds.Oneofthekeyfactorsthatbenefits
fromthesetechnologiesistheabilitytoprovideinformationaboutunusedcapacity,asset
visibilityandreductionof“deadhead”milesorempties.Thesesystemscouldhelpreducesome
oftheinefficienciesatthelonghaul(citytocity)transport,short-haul,lastmile,international,
andevenatthecourierexpressservices.Complementarystrategieshavealsobeendeveloped
tohelpmitigatesomeoftheproblemsassociatedwith“empties”atthewarehousinglevel.
Figure3showsexamplesofthesesystems45.
Figure3:ExamplesofOn-DemandLogisticsPlatforms
AlthoughsomeoftheexamplesinFigure3arenewtechnologicalplatformsfortraditional
freightservices,currenton-demandtechnologiesandsharingpracticeshaveresultedinnew
freightoperationsandbehaviors.Publicagenciesshouldsupporttheplanningandresearchfor
thepotentialapplicationsofsuchservices.However,itisclearthattechnologyandinformation
systemscouldplayakeyroleinmaximizingassetutilization.Publicsectoragenciesshouldalso
identifytheadequateallocationofresourcessuchthattheseplanningandresearcheffortsare
conducivetoanefficientsystemanddonotinterferewithprivatebusinessmodels.
45
th
Pazour,J.(2016).TheOn-DemandEconomyandUrbanFreight.Presentationatthe95 TransportationResearch
BoardAnnualMeeting,Washington,D.C.
28
ThePortsofLosAngelesandLongBeachareexploringaVirtualContainerYard(VCY)aspartof
theirSupplyChainOptimizationeffort(SCO).ThePortshavebeenindiscussionwithaprivate
entitywhichwillsoonbelaunchingaVCYservice.ThePortsandSCOparticipantswillcontinue
topromotesuchaservice,andothersthatmightemerge.However,thePortswillnotactually
deployitsownVCYtosupplantorsupplementotherVCYservices.
AllLayersoftheEconomy
Thepreviousstrategieshaveconcentratedinfreightdemandmanagementandcollaborative
logistics;however,trafficmanagementintheformofrelaxingvehiclesizeandweight
restrictionscouldhavethepotentialtocontributetomaximizingassetutilization.Thisstrategy
couldaffectthedistributioneconomyaswellasthefreightcorridorsintheinternational
gateways.
RelaxingVehicleSizeandWeightRestrictions(TrafficManagement)
Thisfinalstrategy,doesnotspecificallyrelatetodemandmanagementorcollaborative
logistics;however,duetoitsimportancetoalleviatesomepressingissues(investmentinrail
infrastructure,drivershortages,andfreighttraffic)itisdiscussedhere.
Allowingincreasesintrucklengthandsizewouldprovidetheopportunityforsignificantgains
inefficiencyforcertainportionsofthefreightindustry.HeavierGVWmaximumsandlonger
trailerconfigurations,e.g.,97,000lbweightlimitsoruseof2-3trailerlongcombination
vehicles(LCVs),couldprovidebenefitsinmultipledifferentforms.Intermsofexpected
benefits,examplesofmetricsmeasuresusedinsomestudieslookingattheUSsysteminclude
reducednumberoftrips,reducedadministrativecosts,lesscongestion,fewerhoursofidling,
lessdemandfordrivers,reducedtotalfuelusage,andlowertotalemissions.
TruckweightandsizelimitsintheUShavenotbeenchangedsincethe1982,whentheSurface
TransportationAssistanceAct(STAA)mandatedan80,000lbfederalweight(GVW)limitfor
interstatehighways.Thisisexacerbatedbythecontinuedexistenceofapreviousprohibition
[from53yearsbefore2009]thatrequiresthat,inordertoincreasetheirsizeorweightlimitson
sectionsoftheinterstatehighwaywithintheirborders,individualstatesmustdemonstratea
grandfatheredright(frombefore1956)todoso.Additionally,in1991ISTEAfrozetheweights,
lengths,androutesofoperationoflongcombinationvehicles(LCVs).Itisclearthatvehiclesize
andweightrestrictionsisacomplexissue.
Afewdifferentopportunitiesexistwheretruckweightand/orsizeincreaseswouldprovide
easilyachievableefficiencybenefits.“ItisgenerallyacceptedthatintheU.S.theratioofmasslimitedtovolume-limitedsemitrailersrangesfromabout50/5046to40/60”47.Accordingtoa
surveyoftheNPTC,86percentofcompaniesexperiencesomeweightout,76percent
experiencesomecubeout,and66percenthavebothweighoutsandcubeouts.Amorein
46
NRC[NationalResearchCouncil](2010).TechnologiesandApproachestoReducingtheFuelConsumptionof
Medium-andHeavy-DutyVehicles.Availableat:http://www.nap.edu/catalog.php?record_id=12845
47
Woodrooffe,J.(2014).Reducingtruckfueluseandemissions:tires,aerodynamics,engineefficiency,andsize
andweightregulations.
http://deepblue.lib.umich.edu/bitstream/handle/2027.42/109749/103144.pdf?sequence=1&isAllowed=y
29
depthsurveyfoundthatfifty-sixpercentofcompanies’shipmentsregularlyweightout,and34
percentregularlycubeout.Anysituationthatinvolvesaweightoutcanbeequatedwithan
opportunityforheavierweightallowancestohaveanimpactonefficiencies.Similarly,any
situationinvolvingacubeoutrepresentsanopportunityfortrailersize/lengthincreasessuchas
theuseofLCVs.
Inthebrightside,companiesestimatedthattheycouldseea10%reductionintrucktripsif
weightrestrictionswereincreased,anda6percentreductionintripsifLCVswereallowed.For
5companiesthatcouldbenefitfromweightrestrictionincreases,anincreaseof8,000lbsin
GVWallowancewouldsave7.5milliongallonsoffuel,andanincreaseof14,000lbswouldsave
10.8milliongallons.UseofLCVsareestimatedtoachievea34.9%reductioninfuelusage,on
average.“Ofthethreescenariosevaluated,theLCVoptionhasthegreatestprojectedinfluence
onfuelconsumptionandemissionsreduction”48.Lookingatthescenarios,combined,can
provideevenmorebenefits.Assumingallcompaniesinthestudyarerepresentativeofthe
generaltruckpopulationintheUS(anissuetheauthorsacknowledgedwasanunknown),if
botha8,000lbincreaseanduseoftwin53-fttrailerLCVswereallowed,nationalannualdiesel
fuelusagewoulddecreaseby2.6billiongallons.Ifa14,000lbincreaseandLCVswereused,
thatreductionwouldbenearly3billiongallons.
Investigatingthepotentialforlongerand/orheaviertrucksinCaliforniawouldprovidea
significantprospecttoaddressgoalsspecifiedbytheGovernor’sExecutiveOrder.Comparedto
othercountriesthatalreadyhavelooserrestrictionsonsizeandweight,theUShasalarge
opportunitytoincreasetheirefficiencyandhaveamorecompetitivefreightsystem.“The
potentialgainsinfreightefficiencyforfreightthatcouldmakeuseofvehicleweightincreases
matchingourNAFTApartnersCanadaandMexicoare44and53percent,respectively”49.Large
increasesinefficiencythatcouldbeachievedbyadjustmentstothefederalweightandsize
limitscouldprovideefficiencygainsthatcouldpossiblymeetorexceedtheGovernor’sgoal.It
isimportanttoconsider,however,severalfactorsthatcanhavelargeeffectsonestimated
results50:
•
•
•
Each company has different areas where efficiency gains can be achieved through the
expansionofsizeandweightlimits;notallcompanieswouldbenefitfromeachpossible
looseninginregulation;
“Larger trucks, including LCVs, will not be suitable for all roads, and route selection,
permittingandmonitoringwillbeimportantissues”;
Therecouldbeincreasedwear-and-tearonthetrucks,tires,andtrailers,affectingthe
lifetimesoftheequipment;
48
Woodrooffe,J.,Belzowski,B.M.,Reece,J.,&Sweatman,P.(2009).Analysisofthepotentialbenefitsoflarger
trucksforUSbusinessesoperatingprivatefleets.
http://deepblue.lib.umich.edu/bitstream/handle/2027.42/65000/102510.pdf?sequence=1&isAllowed=y
49
Woodrooffe,J.(2014).Reducingtruckfueluseandemissions:tires,aerodynamics,engineefficiency,andsize
andweightregulations.
http://deepblue.lib.umich.edu/bitstream/handle/2027.42/109749/103144.pdf?sequence=1&isAllowed=y
50
Woodrooffe,J.,Belzowski,B.M.,Reece,J.,&Sweatman,P.(2009).Analysisofthepotentialbenefitsoflarger
trucksforUSbusinessesoperatingprivatefleets.
http://deepblue.lib.umich.edu/bitstream/handle/2027.42/65000/102510.pdf?sequence=1&isAllowed=y
30
•
•
•
•
Weight increases would be compatible with most existing infrastructure, but bridge
weightrestrictionsneedtobeconsideredinadditiontointerstatehighwayrestrictions;
Heavier trailers that only have 2 axles will need a third axle in order to handle more
weight.Thisraisescostconcernsandissuessurroundingwhoownsthetrailer/wouldbe
responsibleforretrofits/turnoverinthetrailerfleet.Estimatingretrofitcostswouldbe
verydifficult,consideringthelargevarietyofequipment/uses;
LCVusehaslimitationslargelybasedoninfrastructure-relatedgeometricconstraints;
o LCVswilllikelyrequirespecialgovernmentpermittingandadditionaltrainingfor
drivers; they also would require significant infrastructure changes in different
areas of use, including on roads and also at the point of transition from
interstatetourbanarea(e.g.needingdropyards);operationaladjustments,on
thesideofthecompanies,wouldbeneededaswell;
Theuseoffor-hirecarriers,versusprivatecarriers,canhaveanimpactonthefeasibility
(andcostburden)ofweightincreasesandLCVuse.
Additionally,impactsonCalifornia’sroadwaysandpavementsneedtobeconsidered.The
TransportationInstituteatTexasA&Mhasconductedresearchinthisgeneralarea,andtheir
findingsshouldbelookedatandconsideredwhenlookingatthepotentialofheaviertrucksin
California.Althoughacomplextopic,thepotentialforimprovementsduetomodifyingsizeand
weightsrestrictionswarrantstheneedforadditionalresearchtoidentifythoselocationsor
corridorswheretheycouldbeimplemented.FederalandStateAgenciesshouldtakethelead
onidentifyingthoseopportunities.Concernsaboutinfrastructuredamage,safety,andother
issuesarevalidreasonstoinvestresourcestoidentifythefeasibilityofsuchstrategies.
However,technicalfeasibilitymaynotequatewithregulatoryconstraints.
SummaryofStrategies
Ingeneral,thediscussionsforeachstrategyshowedthatthereisvariabilityinthepotentialfor
theirimpacts,thelevelsofeffortneededfortheirimplementation,andthetypeof
stakeholdersinvolvedintheplanning,research,andimplementationphases.Someofthe
strategiesarelikelytobewidelyunderstoodbythepractitionercommunity,whileothers
requirecarefulanalysisandimplementationtoavoidunintendedconsequences.Moreover,the
amountofpublicinformationavailableaboutexperiencesandassessments,variesfrom
strategytostrategy;thisisespeciallythecasefortherequiredlevelofcostsand
implementationefforts.Thissectionsummarizesthevariousproposedstrategiesbasedona
qualitativeassessmentofsomeofthefactorsdiscussedinSectionI:potentialbenefits;
stakeholders’roleintheimplementation/planningeffort;requirements;andtheopportunities
fortheimplementationofnewtechnologies.Thequalitativeassessmentisbasedonthe
discussionandcriticalanalysisofeachstrategy.Foreachfactor,a3-levelscaleisused,
indicatinglow,mediumandhighrelationship(i.e.,positiveeffect,levelofinvolvement,and
levelofeffort/investment).Lackofanassessmentindicatesthatthecriteriondoesnotapplyto
thestrategy,orthattherelationshipisverylow.Ingeneraltheassessmentismadeconsidering
thatthestrategyisfeasibleforimplementation,andthattheunintendedconsequenceshave
beenaddressed.Thisassessmentshouldbeusedasageneralguideline,andforcomparison
31
purposesbetweenthestrategies.Theassessmentdoesnotimplytherealmagnitudeofthe
effectsasitwilldependonthespecificsoftheprogramtobeimplemented.
Forexample,
32
Table4showsthepotentialbenefitsexpectedfromtheimplementationofeachofthe
strategies.Theassessmentclearlyindicatesthatthesestrategieshavethepotentialtogenerate
positiveeffectsintermsofincreasedoperationalefficiency,reducedcongestion,andimproved
environmentalsustainability;whilenotgeneratingmajorimpactsonsafety,securityand
enhancinglivability.However,themagnitudeofthosebenefitscouldnotbeestimated,as
additionalresearch,simulation,modelingandanalysesarerequiredtoidentifythecorridors,
and/orspecificlocations(orstakeholders)wherethosebenefitswouldberealized.For
example,whilesomeofthebenefitscouldbeperceivedinsidemaritimeterminals,other
beneftissuchasreducedcongestioncouldimpactallnetworkusers(thusquantifyingthemisa
complextask).Forthecasesforwhichinformationisavailable,overallemissionreductions
couldbeintheorderof4%asinthecaseofOff-HourDeliveries.Anotherimportantaspectthat
limitstheabilitytoquantifythebenefitsisthefactthat,inmostcases,theimplementationof
variousstrategiesdoesnothaveanadditiveeffect.Though,controllingforunintended
consequencessuchasinduceddemand,itisexpectedthatthebenefitwouldbeacompounded
positiveeffect.
33
Table4:PotentialBenefits
Potential
Benefit
Strategy
Environ
Enhanc
-mental
e
Sustain
Safety
a-bility
Enhanc
e
Securit
y
Enhance
Econom
ic
Competi
tiveness
Public
Sector
Revenue
Generatio
n
Enhanc
e
Livabilit
y
Increase
Operation
al
Efficiency
Reduce
Congestio
n
Chassis-PoP
+++
++
+
++
Integrated
Dray
Services
++
+++
+++
+
++
Advanced
Appointmen
t/
Reservation
Systems
+
+
++
+
+
+
+
+
Load
Matching/
Maximizing
Capacity
++
++
++
+++
+
Improving
Traffic
Mitigation
Fee
Programs
++
++
++
+
+
+
+
Relaxing
VehicleSize
andWeight
Restrictions
+++
+
+
++
+
Receiver-led
Consolidatio
n
+++
+++
++
++
+
Voluntary
Off-Hour
Delivery
Programs
+++
++
++
+
++
++
(+)denotesalowpositiveeffect.(++)denotesamoderatepositiveeffect.(+++)denotesahighpositive
effect
Whendesigingthevariousstrategiesandconductingtheplanningefforts,itisimportantto
identifythestakeholders’roleintheprocess(see
34
Table5).Forthepurposeofthispaper,whenreferingtothelocal/regional/State/Federal
government,planningagencies,andotherpublicauthorities’involvement,theanalysesreferto
thelevelofengagementrequiredfromeachofthosestakeholderstoprovidecriticalexternal
planning,financial,orpolicysupport.Acleardifferenceshouldbemadebetweenthe
stakeholderengagementforthedesign,planningandimplementationprocess,andthespecific
stakeholderstargetedbythestrategy.Forexample,whilereceiver-ledconsolidationprimarily
targetsshippersandreceiversofthecargo,otherstakeholderssuchaslogisticsoperatorsand
ancillaryfacilitieswouldneedtocoordinatethechangesinoperationalpatterns;governmental
involvementrequirementsmaybelimited.Voluntaryoff-hourdeliveryprogramsexhibitsimilar
characteristicsintermsofthetargetedstakeholders;however,theimplementationand
planningeffortsrequireengagementfrommanyotherstakeholdersincluding,local,regional
andnationalpublicagencies.
Inothercases,theplanningeffortshouldconsiderissuesresultingfromtheimprovementof
operationsofspecificmodes.Forexamples,relaxingtrucksizeandvehiclerestrictionsmay
induceanundesirablemodeshiftfromrailtotruck;moreover,theinfrastructureinvestments
tofacilitatethetrafficofheaviervehiclesmaycreateequitydifferencesbetweenthepublicly
andprivatelyownedinfrastructures(e.g.,rail).Inthisspecificexample,relaxingvehiclesizeand
weightrestrictionsforovertheroadvehicles,couldgenerateoppositionfromtherailindustry,
andcommunities.
35
+
+++
+
+
Integrated
DrayServices
++
+++
++
++
+
+++
++
+++
++
+++
+++
++
Advanced
Appointment/
Reservation
Systems
+
+++
++
+++ +++ +++ +++ +++
+
+
+
+++ +++
++
++
+
+
+
Load
Matching/
Maximizing
Capacity
++
Improving
Traffic
Mitigation
FeePrograms
++
Relaxing
VehicleSize
andWeight
Restrictions
+
+++
+
+
Receiver-led
Consolidation
++
+++
VoluntaryOffHourDelivery
Programs
++
+++
+++ +++ +++
+++ +++
Others(Tradeorganizations,
scientists,academia,
communities)
+++
Federal
State/Regional
+++
LogisticsOperators
Warehouses/DistributionCenters
++
PortTerminals
+
Receivers(LargeandSmallEstablishments)
+++
Carriers-Maritime(ShippingLines)
+
Carriers-Rail
Chassis-PoP
Carriers-Road(Drayage/Distribution)
Stakeholder
Strategy
Shippers
LocalGovernment/Planning/Authorities
Table5:Stakeholders’roleintheimplementation/planningeffort
+
+
+++
+
+
+
+
++
+
+
+
+++
+++
+++
+++ +++
+
+
+
+++
+++
+++ +++ +++
++
++
+++
(+)denotesalowinvolvement.(++)denotesamoderateinvolvement.(+++)denotesahighinvolvement
Eachstakeholdercouldparticipateintheimplementationandplanningeffortsinmanyforms.
However,thetypeofrequirementstodevelopasoundstrategycouldbecategorizedin:
cooperationandcoordinationefforts;needforincentivesortaxation;theneedforfundingor
capitalinvestment;developmentofinformationtechnologies;developmentofnew
36
technologiessuchashardware,equipment;infrastructureimprovements;andregulatory
framework.Inessence,therequirementscouldbeintermsoftechnological,financial,planning,
policyoroperationalsupport.Table6summarizesthetype/levelofrequirementsexpectedfor
eachstrategy.Theassessmentshowsthatcooperationandcoordination,developmentof
incentivesandtaxationschemes,andthedevelopmentoruseofinformationtechnologiesare
theprimaryrequirementsforthesestrategies.Designingeachstrategyshouldtrytoguarantee
participationfromthetargetedstakeholders.Examplesincludetheoff-hourdeliveryprogram
andtheuseofincentivestofosterparticipation;ortherecentexperienceswiththeSCOatthe
POLA/LB,whereanumberofstakeholdersarecooperatingandconsideringoptimizing
strategies.Thecooperationandcoordinationamongthestakeholdershaveresultedin
successfulstoriessuchasthehandlingofthe3largestvesselsevertocallaportintheUS.
Infrastructure
Improvements
RegulatoryFramework
NewTechnologies
(Hardware,Equipment,
Vehicles)
Incentives/Taxation
Chassis-PoP
+++
++
+++
+
++
+
IntegratedDray
Services
+++
++
++
+++
+
+
++
Advanced
Appointment/
ReservationSystems
++
+
+
+++
+
+
+
LoadMatching/
MaximizingCapacity
+++
++
+++
+
ImprovingTraffic
MitigationFee
Programs
++
+
+
+
RelaxingVehicleSize
andWeight
Restrictions
+
+++
+++
Receiver-led
Consolidation
+++
+++
+
+
VoluntaryOff-Hour
DeliveryPrograms
+++
+++
+
+
+
+
CapitalInvestments
Cooperationand
Coordination
Requirements
Strategy
InformationTechnologies
Table6:Requirements
(+)denotesalowlevelofeffort/investment.(++)denotesamoderatelevelofeffort/investment.(+++)
denotesahighlevelofeffort/investment.
37
Inadditiontothepreviousfactors,theproposedstrategiescouldalsoprovidesome
opportunities(directlyorindirectly)tointroduceorfostertheimplementationofnewor
sustainabletechnologies.Theseinclude,zeroornearzeroemissionvehiclesandequipment;
improvementandretrofitstoexistingfacilities;automation;andtheimplementationof
informationtechnologies.Thequalitativeassessment(seeTable7)isdoneunderthefollowing
assumptions:1)thesestrategieswillprovidesystemefficienciesthattranslateontooperational
efficienciesfortheindividualstakeholders;2)systemefficienciesalsogenerateeconomic
benefits;3)operationalandeconomicbenefitswillallowforthestakeholderstoinvestinsome
ofthosenewtechnologies;and4)otheroperationalefficiencies,andimprovementsinthe
overallsystemconditionscouldallowfortheuseofthenewtechnologieswithintheirtechnical
limitations(e.g.,rangeofelectricvehicles;loadingcapacity).Moreover,consideringthatthe
developmentofsomeofthestrategiescouldbeinvolveincentiveandfundingprograms,these
programscouldalsoincludetheadoptionofthesetechnologies.
Table7:Additionalopportunitiesfortheadoptionandimplementationofnewtechnologies
Opportunitiesfor
Strategy
Sustainable
Vehicles
Sustainable
Equipment
Improved
Facilities
Automation
Implementation
ofInformation
Technologies
+
+++
+
+
++
IntegratedDray
Services
+++
+
+
+++
++
Advanced
Appointment/
Reservation
Systems
+
++
+++
+++
LoadMatching/
Maximizing
Capacity
+
+
+
++
ImprovingTraffic
MitigationFee
Programs
+
+
++
RelaxingVehicle
SizeandWeight
Restrictions
++
+
+
+
Receiver-led
Consolidation
+
++
+
+++
++
+
+
++
Chassis-PoP
VoluntaryOff-Hour
DeliveryPrograms
(+)denotesalowpositiveeffect.(++)denotesamoderatepositiveeffect.(+++)denotesahigh
positiveeffect
38
Ingeneral,andalsodiscussedinthefirstpaperofthistwo-partseries,theanalysesshowedthat
thereisnosinglestrategythatcouldaddresstherangeofinefficienciescurrentlyaffectingthe
CaliforniaFreightSystem.Whilesomeofthestrategiesareintendedtomitigatepressingissues,
otherscouldhelptoadaptandbeabletomitigatetheimpactsoffuturetrends,andoperational
patterns.Designingaplantoimprovethefreightefficiencyshouldconsiderasetorpackagesof
complementarystrategies.
39