Katelyn St. Ana
Network FOB
April 9th 2015
2014 CAPACITY CHALLENGES
• Polar Vortex – Terrible weather
• Truck, Rail and Intermodal Services Slowed
• Product / Commod...
2015 CAPACITY FORECAST
• West Coad Port Ramp-up already impacting Capacity
• Previously offer Intra US relief in Q1
• Driv...
ADDITIONAL GOVERNMENT REGULATION
• 2015 West Coast Port Agreement
• Involves 29 ports from San Diego, CA to Seattle, WA
• ...
WHAT IS THE PROBLEM?
• Driver’s median age is over 46 years old
• HOS revisions 2014 through 2016
• Electronic Logging Dev...
HOW DO WE MOVE FORWARD?
• Trucking Operators expanded payroll by 46,000 jobs in 2014, compared
to 24,900 in 2013.
• Driver...
of 6

L.A. Port Congestion / 2015 Outlook

A brief outlook on 2015 and the issues we face in Logistics
Published on: Mar 4, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - L.A. Port Congestion / 2015 Outlook

  • 1. Katelyn St. Ana Network FOB April 9th 2015
  • 2. 2014 CAPACITY CHALLENGES • Polar Vortex – Terrible weather • Truck, Rail and Intermodal Services Slowed • Product / Commodity shift • Increased movement of Oil and Shale • Driver Shortages • Costs skyrocketed and OTR pool diminished • Estimated 200,000 drivers short by 2020 • Government Regulation • HOS 3% loss in 2014 (ATA) • California Air Resources Board (CARB) • Transportation Provider Closures • Cold Train (August 2014) • McKay Transcold (November 2014) • Barriers to Entry • Port Congestion Cargo Ships waiting to make berth at Port of Long Beach CA 2015 Shortly after Atlanta was hit with unexpected snow late 2014
  • 3. 2015 CAPACITY FORECAST • West Coad Port Ramp-up already impacting Capacity • Previously offer Intra US relief in Q1 • Driver Shortages Increase • TL Driver Turnover is 103% • Additional Government Regulation • Barrier to Entry not Improved • Demand continues to increase • Lack of rate stabilization • Tighter Market than 2014 • One 2015 Positive: CP and CN averted strikes in L.A.
  • 4. ADDITIONAL GOVERNMENT REGULATION • 2015 West Coast Port Agreement • Involves 29 ports from San Diego, CA to Seattle, WA • Thomas Perez (U.S. Labor Secretary) was sent to intervene • Agreement was reached on February 20, 2015 • Union workers will vote on May 22, 2015 • They handle about 25% of all international trade • As of now, cargo ships off the coast are making berth as scheduled • Port delays have subsided but we still have the issue of driver shortages Thomas Perez at the Port of Long Beach
  • 5. WHAT IS THE PROBLEM? • Driver’s median age is over 46 years old • HOS revisions 2014 through 2016 • Electronic Logging Device mandate (Coming between 2017 and 2018) • Increased insurance minimums • Speed Limitations – according to Eric Starks, President of research firm FTR Transportation Intelligence “Every one mile per hour drop adds 67,000 more trucks to move same freight,” • Millennials’ are lazy and ‘resourceful’ which makes truck driving unappealing because of the “the government will take care of me” mindset.
  • 6. HOW DO WE MOVE FORWARD? • Trucking Operators expanded payroll by 46,000 jobs in 2014, compared to 24,900 in 2013. • Driver Retention Programs • The top 4 approaches are increased pay, upgrading equipment, performance based bonuses, and recognition/reward programs. • Recruiting young adults in their 20’s • Create better working conditions • Jason’s Law • There is a push to increase max weights, the bill is up later this year • ATA wants states to allow a 97,000 lb, six-axel weight limit OR an 88,000 lb, five-axel weight limit, standarize trailer lengths at 53’ and allow two 33’ double trailers, up from 28’.

Related Documents