In July 2024, the Port of Los Angeles handled nearly 940,000 twenty-foot-equivalent units (TEUs) of cargo — the highest in its 116-year history. Considering the looming strikes at the East Coasts and Gulf of Mexico, that number is expected to continue rising in the coming months. However, the astronomical numbers mean various stakeholders, including shippers and terminal operators, now have to contend with the complexities of port drayage.
As the numbers continue to rise, all hands are expected to be on deck and deploy various strategies to manage the volume. Failing to do that will only result in the all-familiar logistics bottlenecks across port operations, especially for high-volume ports like the Port of Los Angeles and Long Beach. One of the more relevant strategies for streamlining and enhancing the speed of the operation is through a robust drayage service.
It allows goods to leave the port immediately after relevant authorities clear them. Port operations can get rather complicated. However, this article provides a comprehensive list of best practices to help logistics professionals navigate the complexities of port drayage efficiently.
Drayage operations are short logistics operations. However, they are critical for shippers seeking to manage the movement of their shipments between the ports and their warehouses or distribution centers. Businesses that have underestimated the drayage process have paid for it through delays and absurd demurrage or detention charges. Streamlining is not an option, but what are the proven strategies for ensuring this? Especially for the Port of Los Angeles?
Before starting drayage operations at the Port of Los Angeles, the first step is to understand and stay updated on the various port fees or charges. This is crucial because the financial implications of port drayage can get out of hand. The business may pay for unnecessary charges or pay too much for relevant charges.
For instance, container dwell fees are usually levied on shippers and carriers that fail to pick up their containers within an allotted time. The charge could very well impose a financial burden on the business it is levied against, impacting cash flow and disrupting overall supply chain operations. Understanding charges or fees involved in port operations will enhance a better drayage process and improve cost manageability.
Sustainability is the new currency of logistics and supply chain operations. Focusing on it has proven to positively impact these operations. For example, to reduce idle times and emissions, a business will want to invest in effective scheduling of drayage operations, which also means fewer resources.
Other ways to enhance sustainability in port drayage include leveraging low-emission vehicles and reducing idling. Stakeholders can participate in the EPA SmartWay program, which enables drayage operations to be more sustainable and improve air quality at the ports. While such initiatives may require some level of investment initially, the ROI is impressive as they pay for themselves and then some more.
Monitoring the container status is essential to planning drayage operations, primarily because it helps with visibility and scheduling resources. Real-time container status is critical for improving turn times and per diem fees. Through tracking, a business can ensure that the container doesn’t stay longer than it should, enabling dray operators to allocate necessary resources when needed.
Effective container tracking helps businesses avoid costly delays and inefficiencies. Monitoring the container too early may disrupt other operations and lead to unnecessary costs, while tracking too late results in additional fees. By leveraging technologies like telematics, GPS, and other tracking solutions, businesses can ensure the container is monitored at the right time, minimizing extra charges and maximizing resource allocation.
Although the drayage operations might be as efficient as possible, there are many cases where unexpected delays and disruptions might occur. These are typically external, such as port congestion, leading to poor or slow clearance of goods. In these situations, temporary storage of goods will become necessary.
To ensure this happens seamlessly, leveraging local warehouse facilities around the ports will play a critical role. However, to do that, the following will be necessary to manage the process:
Allowing drivers to self-schedule improves their effectiveness on the job. It means they are available at the best time for them, whether day or night, thereby improving their throughputs. This way, port congestions are better managed, and the efficiency of the drayage operations improves strategically.
Here are some other reasons why self-scheduling tools have proved helpful in drayage operations: reduced wait times for drivers, automation of the entire process, enhanced transparency, and cost savings throughout the operation.
Synchronized scheduling with long-haul operations can lead to cost savings by ensuring the effective allocation and use of ground resources, including warehouses, drivers, and trucking solutions. Scheduling also ensures that goods are not left waiting too long between logistics operations.
Here are some ways to ensure effective scheduling:
Modern logistics operations are infinitely more complicated than ever. Leveraging technology solutions is not an option but a necessity for survival. In drayage operations, some advanced logistics technologies, such as GPS, RFID, and real-time analytics, can enhance operational clarity and efficiency.
For example, these tech solutions can be used to ensure quick and relevant rate quoting for drayage providers, but more importantly, they allow simple and effective real-time tracking of shipments.
Southern California is home to two of the busiest ports in the country, and it is nearly impossible to navigate these ports without leveraging a drayage partner like GSL. Building solid relationships with drayage providers ensures quality service, flexibility, and adaptability. It can also streamline the entire planning and fulfillment process.
Here are some relevant strategies for developing and maintaining beneficial partnerships with drayage providers:
Federal and local regulations are guidelines for operations. In the logistics and supply chain industry, they can impact the success of these operations because of the strict emphasis placed on them. Streamlining and optimizing the operations is essential so that failing to comply is never an issue.
Failing to comply can lead to various complications, including downtime and supply chain disruptions. Some key regulations cover driver hours of service, vehicle maintenance, and environmental standards. To ensure compliance, staying updated on these regulations, investing in technology, providing driver training, and embracing sustainable practices are important.
Since 1956, when the first standard shipping container was introduced, you will nearly never see shipments transported over long distances sans these containers. However, using these containers does incur expenses, some more than necessary, which makes it critical to optimize its usage.
The following strategies can be leveraged to improve container usage from 65% to 90%:
Like every other logistics and supply chain process, effective communication is necessary to operate effectively. It is essential in drayage operations because of their critical nature.
Effective communication ensures end-to-end visibility and proactive management. By leveraging integrated communication tools and a centralized platform, the drayage team and other logistics stakeholders can streamline the flow of information, allowing for real-time tracking, notifications, and collaboration among all parties.
In logistics management, there are many opportunities for unexpected delays, disruptions, and other devastating issues, but adequate preparation for these in the drayage process ensures that you can mitigate the consequences of these events.
Contingency planning is key to maintaining operations in the face of disruptions. Effective contingency plans for traffic jams and equipment failures can be created by anticipating potential risks and prioritizing them based on their potential impact. To do that effectively, develop alternative solutions, assign clear roles and responsibilities, and maintain open communication.
Golden State Logistics prides itself on service, expertise, and reliability. With 25 years of drayage expertise in Southern California, we have the capability to manage any challenge, earning the trust of shippers and supply chains throughout the region. With a robust network and investment in technology solutions, GSL is the partner that guarantees your business and supply chain a competitive edge. Get in touch with us today.
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