Insights - May 2015 - 9

LONG BEACH - from page 7

Commission] gives us is the ability to
In response to this, we made an
work on things such as supply chain
off-dock site available that allowed
are much better today with the deoptimization.
truckers to drop off their empty
ployment of the gray chassis fleet.
The intent is to work together to
container, move on to the terminal,
In fact, when we first noticed the
address issues from a complex perspecpick up a loaded inbound container
congestion buildup, chassis were at
tive and work together to ensure that,
and dray it off. This off-site yard also
the root of that. And this interoperwhether cargo comes to L.A. or Long
allows terminals reaching capacity to
able fleet is very important because it
Beach, the supply chain, the gateway
move the containers more quickly on
cuts down on the repositioning and
and everything that we're doing is as
a free-flow basis by allowing them to
the split moves by truckers.
good as it can be.
be moved to this off-dock site, and,
The important thing is the pools
by moving them off-site, it moves the
are collaborating, which opens doors
staging operation away from the
to greater efficiencies and ensures
terminal to this site.
that the chassis are where they
That's more efficient from
are needed at any given point.
every angle, and that's why we
As far as the longshore labor
think this off-dock or free-flow
contract, we look forward to
concept is so valuable, especially
reviewing the PMA-ILWU agreeat this time.
ment provisions on chassis M&R
We're closely monitoring the
once it's made public. We haven't
status of our off-dock facility. If
seen it yet, so, at this point, it
this is something that our partwould be premature for us to
ners view as helpful, it's somecomment. But we look forward
thing that we're open to explorto reviewing that and working
Plans for Middle Harbor redevelopment at the Port of
with the chassis operators and all Long Beach include enhanced intermodal connectivity. ing on a more permanent, more
long-term basis. We are very keen
of our partners, frankly, to come (Rendering courtesy of Port of Long Beach)
on that as a potential solution
up with solutions that fall within
going forward.
that agreement.
Do you see a continued role for offIf you look at what's happening in
dock/dray-off container yards? What
How do you see the relationship
the industry, with these bigger ships
potential do you see for a free-flow
with Port of L.A., including the
bringing in much more volume at
program?
recently approved discussion agreeone point in time, when you look at
ment, as enhancing efficiencies for
The free-flow concept is not new to
how the growth in capacity of these
Southern California port users?
the Port of Long Beach. SSA, one of our
ships is outpacing the growth of the
Both ports - L.A. and Long Beach terminal operators here in Long Beach,
terminals, I think, in some ways, it's
has been using that model for 15 years,
- have worked closely together for a
inevitable.
and it has been quite effective for their
long time. The two ports have worked
In Long Beach, the average size
operation.
successfully in the past on projects
of a container terminal call has nearly
What is new is the use of this model
such as the Alameda Corridor; the
doubled over the last five years. Five
by other terminals. An example: This
intermodal container transfer facility;
years ago, the typical megavessel
off-dock site that we made available in
the Clean Air Action Plan, including
was 8,000 TEU [20-foot-equivalent
response to the cargo backlog is a way
the Clean Trucks Program; the Water
container units]. These days, we see
to move containers out of the terminals
Resources Action Plan; and, most
14,000-TEU vessels calling weekly.
and onto an off-dock site, which also
recently, the gray chassis fleet.
All the while, the terminals
served as a drop-off point for empty
We have to work together. We are
themselves have remained virtually
containers.
one complex. We are literally next
unchanged, with the same footprint.
This extra drop-off point for empty
door to each other, and, because of
They've had to make adjustments, as
containers became critical because
the big ships and alliances, cargo is
they should, but, inevitably, as these
several terminals were so congested
coming to any one of the 13 termiships continue to grow in size and
that they actually stopped accepting
nals located in the two ports.
bring more cargo at one time, there
empty containers. The problem is that,
And we will continue to work
will need to be some escape valves
when you reject an empty container,
closely together. In fact, one of the
to move the containers through the
you are also turning away the chassis,
major initiatives that this enhanced
terminals as quickly as possible. And
which further exacerbates the chassis
discussion agreement that was
this off-dock concept appears to be a
shortage.
cleared by the FMC [Federal Maritime
very good way to accomplish that.

May 2015 | Intermodal Insights 9

Insights - May 2015

Table of Contents for the Digital Edition of Insights - May 2015