Perspective on the Trucking Industry

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Perspective on the Trucking Industry

• Jim Gill
• California Cartage Company

March 23, 2006
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A Busy Day at Anchor in LB/LA Port June to
December 2004
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A Busy Day at Terminals in LB/LA Port
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Port Terminal Congestion Day to Night
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What A Difference A Year MakesMid-Year 2004 to
2005 Comparison
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What A Difference A Year Makes Cont.End-Year
2004 to 2005 Comparison
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LA/LB Port Trade in 2005 and Estimated 2006

• Los Angeles 7.5 Million TEUs
• Increased 2.3
• Long Beach Nearly 7.0 Million TEUs
• Increase of 16
• Estimated Increase in 2006 8

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Major Importers Impact on Ports
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Major Commodities
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Phoenician Proverb All you need for successful
international trade is
a Seller,
a Boat,
and a Truck!
A Buyer,
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Presentation Agenda
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News on the Ports
Growth Trend at Long Beach/ Los Angeles Port
Twenty-Foot Equivalent Units (TEU)
Million (TEU)
Business is Good !!Are There Enough Resources?
28,000 Truck Trips /day By 2005
Source http//www.polb.com and
http//www.portoflosangeles.org Source
http//www.aapa-ports.org/programs/seminar_present
ations/05_OpsIT/Larking,20Paul.pdf and
http//www.portmod.org/news/2005/April/PierPASSWCu
pdate.pdf
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Presentation Agenda
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Key Performance Indicators for Trucking
Cost of Operations
Source Independent Truck drivers survey
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Presentation Agenda
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Key Performance Indicators for Trucking
Average Number of Daily Turns (Productivity)
Decrease in Productivity Shortage of Drivers
Increases
-50
Avg. Daily Turns
Source Independent Truck drivers survey
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Key Performance Indicators for Trucking
Supply of Trucking Manpower
Driver market is the tightest it has been in 20
years it is critical we find ways to tap a new
labor pool, increase wages and recruit new people
into the industry that keeps our national economy
moving. By Bill Graves President of
ATA Spring 2005
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Key Performance Indicators for Trucking
Trucking Manpower Supply
USA Supply of Truck Drivers Both Heavy and
Tractor-Trailer
2004 -20,000 Drivers 2014 -111,000
Drivers Source ATA Study, May 2005
Source www.bls.gov/oes Country        USAArea 
         All States Supersector   Transportation
and UtilitiesIndustry      Truck Transportation
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Key Performance Indicators for Trucking
Trucking Manpower Supply
Both The City of Los Angeles and Long
Beach Supply of Truck Drivers both Heavy and
Tractor- Trailer
Source www.bls.gov/oes State        CaliforniaA
rea         Los Angeles-Long Beach-Glendale, CA
Metropolitan DivisionSupersector  Transportation
and UtilitiesIndustry     Truck Transportation
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Supply of Truck Drivers
Supply of Trucking Manpower
Issues and Concerns

• The Shortage of Drivers is Increasing
• New Truck Driver Shortage
• Turnover is Above Normal
• Drivers Are Working Fewer Hours (HOS) so fewer
  Turns Are Made
• Waiting Time is Not Being Compensated for
• A Rise in the Cost of Operations Maintenance,
  Fuel, etc.
• A 30 40 Decrease in Both Revenue and
  Productivity
• No Change in Rates for Approximately 15 Years

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Supply of Truck Drivers
Obstacles and Solutions

• Interest qualified drivers, hire them, and make
  them want to stay ? Rise in Productivity of
  Drivers
• Keep the ports open longer ? PIER PASS(?)
• The Automate Interchange Process ?OCR, RFID
• OCR Optical Character Recognition
• RFID Radio Frequency Identification
• 4. Improve the efficiency between the ocean
  terminal and the drivers

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Presentation Agenda
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Impact of Pier Pass on the Trucking Industry
Impact of Pier Pass on Drivers

• Start up very difficult
• Change driver lifestyle
• Driver slow to accept night work
• Need additional compensation
• Additional compensation received slow acceptance
• Driver acceptance
• Based on their ability to make more money
• More money equates to more turns per shift
• Drivers forced to nights by client pressure

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Impact of Pier Pass on the Trucking Industry
Impact of Pier Pass on Drayage Firms

• Start up very difficult
• Additional staffing and cost to drayage firms
• Increased concerns of security
• Increased cost of insurance

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Impact of Pier Pass on the Trucking Industry
Benefits, Deficiencies, and Concerns

• Pier Pass Benefits
• Added a second shift to move volume
• Reduced traffic in peak hours
• Pier Pass Deficiencies
• Has not increased turn times
• Has not put increased money in drivers pockets
• A need for continual roll over day to night gate
• Need for continuous work- no terminal down time
• Future Pier Pass Concerns
• Pier pass fee to increase by mid year
• Drivers want part of the increase to haul nights
• Price rise will drive more importers to off peak

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Concerns Going Forward

• Import volume increase/ terminal congestion
• More big vessels 8,000 TEUS
• More technology
• RFID tag for all trucks security
• Radiation portals at all terminals
• More on dock rail movement
• Infrastructure congestion
• Highway system for trucks
• Rail capacity at Los Angeles Terminals
• Diesel fuel prices
• Need for a uniform fuel surcharge program

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Concerns Going Forward cont.

• Development of an environment green zone
• Both ports have a mandate
• Rail to provide alternate power sources
• Drayage firms to consider new fuel sources
• Liquefied natural gas -LNG
• Develop inland container terminals
• Distribution centers further from port
• Move short haul inland by rail
• Make better use of Alameda corridor

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Going The Next Mile Together Now

• Priorities
• Security
• Environment
• Improved Infrastructure
• Opportunities
• Partnerships
• Collaboration

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THANK YOU!
March 23, 2006