July, 2014

Port of Oakland expansionWhen we talk about terminal productivity, we are talking about yard and gate operations, meaning how quickly we can get a driver in and out of the terminal. When terminal operators and ocean carriers talk about terminal productivity, they are talking about vessel operations, that is how quickly they can work a vessel, get containers discharged/loaded and get the ship back out to sea.

In Oakland, and around the country, we have been plagued by poor terminal productivity…our type of productivity…the one that ties our hands and disables us from getting drivers turned and containers picked up and delivered. We have discussed this issue in our monthly newsletters for the past year. The delays. The congestion. The frustration. The driver exodus. It has gotten so bad the FMC is even looking into the problem.

But, what can we do to fix it? The answer isn’t something the industry wants to hear. Pay more.

Terminal operators need more robust incomes in order to provide the service and operating hours necessary to move containers in a fluid and efficient manner. Additionally, we are going to have to pay our drivers more to compensate them for the lack of turns they are able to achieve.