Port of LA, LB proposed terminal dwell fee phases out before it began
Good morning! Happy Hump Day - let’s get it crackin’.
The traffic jams that were a defining factor of the Ports of Long Beach and Los Angeles in Southern California’s San Pedro Bay are no more. The West Coast’s overwhelming container volume seems to have been transferred to the East Coast for a variety of reasons, including labor disruption concerns and the diversification of shipping routes.
Both ports have now announced that their infamous terminal dwell fee (that was never officially implemented) is being phased out. The fee was originally announced in October 2021 as a way to charge carriers that left their cargo on the marine terminals for longer than nine days, beginning in January 2023. The threat of the fee alone assisted the port in lessening the aging cargo sitting on its docks by approximately 92%, according to port officials.
Check out today’s featured article from Supply Chain Dive to read about the ill-fated terminal dwell fee proposition that faded out before it ever began. What does the future of the Port of LA and LB look like? ☕️
Featured Article:
Port of Los Angeles, Long Beach to end terminal dwell fee | Supply Chain Dive
“The nation’s largest port complex said Friday it will end a program that threatened to fine ocean carriers for long-dwelling cargo, another sign of easing congestion on the West Coast.”
Driver Issues & Safety 🚛
Professional drivers must practice defensive driving throughout career
While drivers are often thoroughly trained with defensive driving tactics immediately upon entry into CDL school, the problems often come from a lack of follow-up training in the years that follow. Training exercises can be perceived as an act of basic compliance with company rules outlined in an HR handbook as opposed to being completely necessary for a safe and successful career.
Defensive driving is an important safety measure that can help reduce the risk of accidents and injuries on the road. It involves using proactive strategies to anticipate and avoid potential hazards and problems that may arise while driving. This includes maintaining a safe following distance, paying attention to other drivers and pedestrians, and being alert to potential hazards on the road.
There are several reasons why defensive driving is important:
It can help prevent accidents: By anticipating potential problems and being proactive in avoiding them, defensive driving can help prevent accidents and keep everyone on the road safer.
It can reduce the severity of accidents: Even if an accident does occur, defensive driving techniques can help reduce the severity of the accident, which can minimize the risk of injuries and damage.
It can save lives: By reducing the risk of accidents, defensive driving can save lives and prevent serious injuries.
It can save money: Accidents can be costly, both in terms of property damage and medical expenses. By practicing defensive driving, drivers can help reduce the risk of accidents and save employers money on insurance premiums and other costs associated with accidents.
Ports & Industry Growth 🚢
Container volume levels increase 11% at Port of Houston
Located in Houston, Texas, on the Gulf Coast, the Port of Houston is made up of more than 200 private terminals, which handle a wide range of cargo, including containerized cargo, breakbulk cargo, roll-on/roll-off (RoRo) cargo, and liquid bulk cargo. An 11% leap in cargo volume was recorded in November - a stark difference in comparison to year-over-year numbers at other major ports in the United States.
The eastward import shift to the Gulf and East Coasts of the U.S. has been notable at Houston - the port now ranks number four. Roger Guenther, Executive Director at Port Houston, is celebrating the growth. He notes that “The long term for container growth in Houston is extremely favorable,” and that the “vessel queue is now reduced to single digits and will likely be caught up in the coming weeks.”
Let’s Get Global 🌎
As Told By Ginger Nicksplat GIF via GIPHY
🇨🇳 The U.S. Trade Representative is extending tariff exclusions on Chinese products. A total of 352 products from China were issued tariff exclusions that were scheduled to conclude within the following two weeks at the close of 2022. A tariff is a tax or fee that is levied on imported or exported goods and it is designed to protect domestic industries and producers from foreign competition. The Congressional Research Service and several legislators are raising questions regarding the USTR’s decision to extend the exemptions - accusing the decision of being overtly selective and picking “winners and losers”. The American Apparel & Footwear Association President and CEO Steve Lamar have in turn praised the decision, citing that the move only helps the American economy.
🇻🇳 Bye, Brits! Vietnam wins a spot in the U.S. top 7 trading partners. The United Kingdom is being pushed out of the exclusive list for the first time since 2004 as Vietnam’s share of the U.S. merchandise trade grew this year by 2.7%. For nearly two decades, Canada, Mexico, China, Japan, Germany, South Korea, and the U.K. have rotated positions but remained on the “Big Seven” list. If Vietnam’s tracking numbers remain as expected throughout the end of 2022, it will be the first time that the Big Seven will consist of a majority of Asian countries. Great Britain’s share of the trade dropped 2.6% this year.
iLevel With You
More topics for the average American household to consider…
🧐 Making one big uncomfortable decision to make up for a thousand “trivial ones”. Seth’s Blog tackles the topic of decision-making on both a personal and company-wide level. Organizations tend to spend an inordinate amount of time discussing “trivial decisions” - such as a new logo - instead of focusing on big decisions, such as where to place their new office.
🧑⚖️ There are certain places companies should avoid getting sued. Georgia, California, and New York judges have been notable for issuing legendary and severe judgments on defendants in the trucking industry. Court rules, court rulings, jurors, docket congestions, and litigation funding permissiveness all play a factor in how likely a nuclear verdict could destroy a trucking business.
🔋 Electric vehicle adoption has been less lackluster than it did last year. With inflation and high-interest rates crippling bank accounts across the nation, the electric vehicles business is expecting continued business issues into 2023. The current median expectation for electric vehicle sales by 2030 is now 35%… when it was 65% one year ago. International consulting and accounting firm KPMG is reporting that automotive executives are a little less confident about the vehicle transition.
♻️ EPA has updated its standards for the first time since 2001. The Environmental Protection Agency’s tougher pollution standards will be issued for compliance on 2027 models of large trucks, delivery vans, and buses. EPA Administrator Michael Regan is arguing the move will protect public health, particularly those who live close to trucking routes throughout the country. The new standards will require heavy-duty trucks to reduce nitrogen oxide emissions by 50% in 2045.
GET SMART
Ramp up that brain power for these advanced topics…
📊 Supply chain teams should refocus on organizational alignment. Organizational alignment refers to the degree to which different parts of an organization are working towards the same goals and objectives. It involves aligning various functions and processes within the organization so that they support the overall strategic direction of the company. This process can create clarity of the company's vision, mission, values, and employee roles in achieving these goals. The Supply Chain Shaman (Lora) is asking supply chains to take advantage of this period of time to deploy organizational alignment.
🤖 Cause-and-Effect reasoning is needed to develop an efficient supply chain. Cause-and-effect reasoning is the process of identifying the cause or causes of a particular event or outcome. This involves understanding the relationship between different variables and how they may have contributed to the event or outcome in question. Artificial Intelligence is the simplest connection for supply chains to progress with KPI optimization platforms and look at the bigger picture.
😵💫 The logistics industry is volatile, but you can prepare now for next year. Flexibility seems to be the key when so many supply chain companies are forced to pivot every which way in light of the challenges posed over the past three years. Justin Cramer, the co-founder of ProShip, says that proper documentation of a logistics company’s performance will be essential when planning for the following peak season.
Artificial Intelligence 🤖
Knight-Swift receives first Embark-powered truck | DC Velocity
DC Velocity Staff writes about the launch of Knight-Swift’s autonomous driving technology on the road between Phoenix and Los Angeles.
More Than Shipping contributor Oguzhan Baskin writes about how computers and computer science have transformed the industries of the 21st century.
Q&A: Kenworth on its Autonomous-Truck Development | Trucking Info
Trucking Info contributor Jack Roberts writes about 680 tractors fitted with Aurora Drive autonomous controls displayed at the 2022 American Trucking Associations’ annual meeting in San Diego in October.
Business Strategy 💡
How Retailers and Brands Can Prepare for 2023 Supply Chain Challenges | Food Logistics
Food Logistics contributor Barry Bradley from Crisp writes about what companies can do to compete in the upcoming challenging year.
Subduing the rising tide of procurement stress: CIPS | Supply Chain Digital
Supply Chain Digital contributor Ilkhan Ozsevim writes about the impact procurements has on teams in supply chain companies.
Inflation 💸
Freight rates may be reaching bottom, but inflation still impacting industry | The Trucker
The Trucker contributor Cliff Abbott writes about the latest benchmark interest rate hike by the Federal Reserve for the seventh time in 2022. What does this mean for trucking?
Industry Forecast 📊
Trucking index hit lowest measure in October since April 2020 | DC Velocity
DC Velocity Staff writes about the plunging diesel prices contributing to the trucking index dropping in early 2020 levels.
Supply Chain Digest writes about Cass Information Systems’ monthly freight report for November.
Freight Shippers Facing a Tough Road | MHL News
MH&L Staff writes about the latest report by UPS Capital that explains the challenges ahead for the freight transportation industry.
Trucking tech hit major milestones in 2022 | Transport Dive
Transport Dive Associate Editor David Taube writes about the notable achievements in trucking tech over the past year.
Leadership 🏆
Meet HDT’s 2022 Top Green Fleets | Trucking Info
Trucking Info contributor Deborah Lockridge writes about HDT’s 2022 Top Green Fleets - recognition for some of the fleets that are notably committed to sustainable practices.
The tools and equipment of winning operations | Fleet Maintenance
Fleet Maintenance contributor Tyler Fussner writes about the industry’s best technicians and maintenance managers’ recommendations for tools and equipment that will best serve fleets.
Trucker’s Lounge 🧢
The Story Behind the Ruan Truck at ATA Headquarters | TT News
TT News Senior Reporter Eric Miller writes about American Trucking Associations’ new Washington, D.C., headquarters.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.