TRUCK PRODUCTIVITY STUDY WORKSHOPS SUMMARY
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- Lenard Little
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1 TRUCK PRODUCTIVITY STUDY WORKSHOPS SUMMARY 1 INTRODUCTION An investigation into trucking productivity and efficiency was instigated by Fremantle Ports and the Freight Logistics Council towards the end of the Fremantle Ports Truck Productivity Study (TPS) - to identify major factors affecting trucking productivity, and evaluate the possible changes that could be implemented to improve productivity. The TPS included a detailed data analysis phase, where data captured from the Container Movement Study (2011), the Annual Truck Survey, and container terminals was analysed to better understand the structure of the transport industry, and size and behaviour of operators. To complement this analysis, an online Transport Operator Survey was conducted to gain feedback from carriers on the way operations are set up and the issues that they experience in achieving optimal productivity and efficiency. The survey also indentified some suggested changes that could improve systems (VBS and ContainerChain), two-way loading, and reduce empty running. Subsequent to the survey, a handful of detailed case study interviews were conducted with selected transport operators to provide a more detailed view on some of the operating behaviours, including commercial drivers, of carriers. Two industry workshops were then conducted over the 10 th and 11 th of September with transport operators, container terminals, container parks, rail, and other industry representatives to discuss the key issues and possible solutions arising from the work to date. This was the first stage of open industry consultation. 2 ATTENDEES Number of Attendees Session 1: Tuesday 10th September Session 2: Wednesday 11th September Transport Operators 12 8 Container Terminals 3 4 ECP 1 2 DAFF - 1 Rail 1 1 Freight Forwarder - 2 Industry 6 4 Total
2 3 FORMAT/CONTENT/ACTIVITIES The TPS industry workshops were designed as an opportunity for industry stakeholders to openly discuss key issues relating to trucking productivity and efficiency, and some of the possible solutions that may help overcome these issues, with each other to encourage a whole-of-supply-chain approach. The format of the workshops was as follows: Presentation of Study Findings A short presentation of the findings of the data analysis and transport operator survey was presented to the participants. This raised some of the key structural characteristics of the transport industry, such as time of day accessing facilities and current loading and two-way patterns. Survey findings related to the primary measures of productivity considered by operators, issues impacting on operator efficiency, such as VBS and ContainerChain functionality and operational set-up, and proposed changes were also presented. Session 1: What are the key issues impacting trucking efficiency? Participants were asked to consider a list of some of the key issues arising from the study to date, discuss the impact that those issues had on their operations and brainstorm any other key issues that had not been captured. Participants were then asked to prioritise the list of issues (high, medium, or low priority), considering factors such as the strategic impact of the issue (influence on the number of trucks on road, efficiency, etc), and presented a few of the high priority issues to the group. Session 2: What are the possible solutions to address issues? In the second session, participants were shown a few examples of possible solutions that could improve trucking productivity. Two specific examples around restructuring the VBS to allow for more efficient slot scheduling, and changes to the redirection functionality in ContainerChain were presented. Participants were then asked to discuss some of the possible solutions that had been identified, brainstorm any other changes that they might like to see, and discuss some of the factors for and against these changes. Participants were then asked to rate the list of possible solutions based on their feasibility - the ability to be successfully implemented - with a rating of low, medium, or high. The individual table groups then presented some of the solutions to the audience and highlighted some of the key factors for and against the change. 2
3 Open Discussion After each table group had presented some of the solutions, the participants were asked for general comments about the solutions raised and key issues. The workshop closed with FP discussing the next stages of the study and likely timeframes. Feedback was requested from participants on the format and success of the workshop. After receiving the feedback from the first workshop, it was decided that the second workshop would be somewhat simplified. The presentation of findings was shortened, and the activities in Session 2 (relating to the solutions) were simplified to remove the feasibility assessment. More time was allowed for group discussions on the issues and solutions, and for the open discussion at the end of the workshops. This proved to be very successful, and positive feedback was received. 4 OUTCOMES 4.1 Container Terminal Operations & VBS High priority issues for industry across the two sessions related to: - Bulk runs & tagged runs (ability of transport to coordinate, resources applied at terminals, times available, etc) - The VBS mad-minute (ability to get appropriate quantity and distribution of slots, inequity between large and small carriers, etc) - Ability to coordinate consecutive zones to increase two-way or multicontainer moves - Carriers with multiple logins affecting the booking process and creating further inequity - Administrative burden related to managing slot drop process - Rail access to DPW not available at present time - Delays at ECPs impacting ability to be on time for terminal slots - Impact of flexibility into the future - requirement for more discipline to shape operator behaviour Favourable solutions discussed across the two sessions included: - Restructure VBS to allow for more efficient slot scheduling - Peak period pricing to incentivise after hours activity - Incentives for higher truck utilisation and two-way loading - Releasing import and export slots at different times - Allow advance bookings, e.g. for exports 4.2 Empty Container Parks & ContainerChain High priority issues for industry across the two sessions related to: - Mismatch of operating hours between ECPs and terminals 3
4 - Carriers not using extended ECP operating hours when available (Saturdays) - Bulk runs during the day impacting R&D - Hard copy DO s still required - Carrier behaviour (e.g. booking notifications that aren t required, early/late arrivals, etc) - Difficulty booking notifications in advance - Maintain flexibility/discipline in the notification process/balancing desire for flexibility with issues caused by those that don t adhere to required rules Favourable solutions discussed across the two sessions included: - Rate carriers through ContainerChain on their efficiencies and reward/penalise accordingly - Container parks not to accept bookings when no slots are available - Move bulk runs to evening and night shifts and require them to be notified in ContainerChain - Increase equipment/resources to service R&D 4.3 Transport Operations & Supply Chain Coordination High priority issues for industry across the two sessions related to: - Equity between large and small carriers (large creating opportunities for small carriers to compete more effectively) - Coordinating bookings between VBS & ContainerChain - Communication and coordination along the supply chain - information exchange, knowledge of parties, etc - Interface between road and rail is underutilised Favourable solutions discussed across the two sessions included: - Use of common user facilities for bulk/tagged runs and staging - Increase carrier use of bulk/tagged runs - Incentives to operate at off-peak times 5 FEEDBACK Feedback from the two workshops was very positive, with the second workshop group confirming that they found the format and smaller group settings conducive to discussion. Almost all participants indicated that they would be willing to participate in future workshops. For many participants, workshops of this nature are their only opportunity to discuss key issues experienced in their operations with other major stakeholders that are involved in the supply chain. Discussion in each of the table groups was constructive, and it was observed that some participants 4
5 were taking note of suggestions and examples of what may occur in other businesses, or changes that could be implemented in the short term, to take away for further consideration. 6 NEXT STEPS The workshops provided an opportunity for industry to have an open dialogue with other stakeholders in the supply chain on what the priority issues are and some of the possible solutions. There is a significant amount of work still to be undertaken in summarising the results of the data analysis, survey, case study, and workshop findings. 1. Distribute industry brochure on progress of study, key issues and several of the solutions to be further investigated. (October 2013) 2. Summarise findings of data analysis, survey findings and case study interviews. 3. Generate a listing of all key issues identified, causes, impacts, and priority to industry. (October 2013) 4. Generate a listing of all possible solutions identified, benefits and impacts to industry, factors that will help or hinder the implementation of the change, and categorisation of solutions by complexity (quick-win changes vs. complex structural changes), stakeholder involvement required, and timeframe to implement. (October 2013) 5. Further industry consultation - workshops to discuss specific solutions in more detail. (November 2013) 6. Industry Forum to present study outcomes and recommendations and seek comments from industry. (February/March 2014) To register your interest in participating in any of these next steps, please contact Fremantle Ports. 7 CONTACTS Jennifer Hall Doug Brindal Senior Logistics Analyst Manager Logistics P: P: E: jennifer.hall@fremantleports.com.au E: doug.brindal@fremantleports.com.au 5
6 APPENDIX A: Detailed Workshop Responses Identified Issues & Possible Solutions - Tuesday 10 th September 2013 Container Terminal Operations & VBS Issues Ability to organise bulk runs/tagged runs o Are tagged runs being used to the greatest extent possible? o Times available don t suit some transport operators o Resources applied are insufficient o Insufficient volume of transport carriers to justify a bulk run Slot drop process mad minute creates stress and limits ability to plan efficient fleet operations o Ability to get adequate distribution of slots throughout the day o Not enough slots available at the times desired by transport operators o Inequity for small and large carriers in ability to access slots Ability to book consecutive zones to achieve two-way load Carriers with multiple logins creates an unfair advantage Administrative burden on carriers related to managing the slot drop process Rail access to DPW Side loaders - staging issue Terminal break times can interfere with R&D o Containers partially loaded at commencement of break and truck stuck in terminal, etc Unbalanced relationship between Container Terminal Operators and Transport Carriers Variability of service levels (truck turn time can vary dramatically from one day to the next) Carriers not respecting terminal rules When container is unloaded from ship have to keep checking VBS system Priority to Industry High for terminals, Low issue for transport 6
7 Possible Solution Restructure VBS to allow for more efficient slot scheduling o Allocation of slots based on carrier volumes o Allocation of slots based on carrier operating hours o Reduction of slots booked through mad minute process o More equitable access to slots for smaller transport carriers o Benefit to large carriers operating at night o Increased capacity o Smoother flow of cargo o Difficult for smaller carriers to grow business o Competition issues o Forced to keep up night operations o Increased overheads for night operations - must be incentives for larger operators e.g. premium slots Open zones early when capacity exists o Issues with system automation Investigate structure of DPW breaks to allow for consistent R&D through shifts Two way service agreements Terminal to provide option for a matched import/export tagged runs to achieve two-way loading Release more slots when capacity exists Rail - better access to terminals Importers/Exporters/FF using all available time - e.g. exports all coming in on last day Better utilisation of night/bulk operations Incentives for two-way loading 2 slot drops Booking containers rather than slots Premium on day/peak slots o Government/Port charge (not from terminal) to benefit community o Money to go back into community e.g. rail, roads etc Drop more slots rather than opening zone early Feasibility / - already occurs 7
8 Empty Container Parks & ContainerChain Issues Mismatch operating hours between ECPs and terminals restricts 2 way loading opportunities Carriers not using extended ECP operating hours when available (Saturdays) Bulk runs during the day impacting R&D o Preferential treatment of bulk run trucks over R&D o Reduced resources on R&D o Long waiting times for R&D Requirement of hard copy DO's Carrier behaviour creates issues for other carriers o Booking notifications that aren't required o Excessively early/late arrivals Not always possible to book notifications in advance (container availability from client, delays in the supply chain) o Difficulty knowing when truck will arrive based on other work or delays in the supply chain o Cannot change container ID to adapt to changing requirements o Lack of flexibility/assistance form parks o 2 hour cut off before time zone restricts ability to undertake ad-hoc requirements o Half hour zones potentially not long enough Flexibility of S/L to return TEU to different park (than pick up) (S/L - ECP - exporter) Maintain flexibility/discipline (notification process) Variability for service levels Unbalanced relationship between ECPs and carriers Off-port park locations Stock availability - futile trips when containers not available or ready Priority to Industry IUM IUM Possible Solutions Move bulk runs to evening and night shifts o Reduce day time congestion o Greater flexibility o Lower waiting times Feasibility 8
9 o Quicker TTT o Additional costs o Higher planning effort Increase equipment/resources to service R&D Increase number of notifications released per zone o Ability to book beyond optimal maximum o Put cancelled notifications back into pool o Dynamic slot release - continual review of capacity by park o Increase truck utilisation o Greater 2 way running o Increase park equipment utilisation o Unused/free capacity o Increased slot revenue o Increased flexibility o Peak pricing o Too many trucks o Higher admin effort Require bulk run containers to be notified in system Align operating hours of ECPs with terminals Improve ability to change container dehire park o Improve efficiency of carrier o More off-port container parks o Decrease number of trucks/trips o Cost competition between parks o Shipping line dependent o Not all ECPs handle all type of containers o Re-positioning costs for shipping lines o Geographical location of carriers Increase length of zones Introduce more flexibility into system o Ability to change container ID o Remove advanced notice requirement (eg reduce or remove pre-notification for imports) o Select multiple timeslots at once Two way service agreements with carriers Display waiting times - Display container stock levels to industry Closer involvement of shipping lines Port slot system (ContainerChain/1-Stop link) Improved communications - coordination function /other search function to eliminate paper DO's Provide automatically matched dehire/hire notifications Improve carrier compliance with notification arrivals at ECPs and promote carriers that do the right thing / 9
10 Transport Operations & Supply Chain Coordination Issues Equity between large and small carriers o Large carriers incurring cost at night benefiting smaller operators during daylight hours Ability to coordinate bookings and notifications between VBS & ContainerChain o Risk of missed slots/no-show penalties due to delays at other facilities o Additional down time required between bookings to ensure on-time arrival - lost productivity of truck and driver Communication and coordination along the supply chain - information exchange between freight forwarders, importers, transport, documentation requirements, etc Interface between road and rail o Under utilised Terminal shift break Difficult matching export receivals windows with import container availability - limits capability to undertake twoway load Number of carriers - industry discussion about whether the large number of small carriers is creating inefficiencies in the supply chain Operating hours of carriers not aligned to terminal operating hours (predominantly daylight Mon-Fri) Prevalence of direct deliveries o Cost of operating and night and on weekends o Cost of staging operations Balance of import/export business Growth in use of 40 containers affecting truck loading Effects of expanding and contracting operating hours during peaks/troughs - lack of consistency Increasing weight of containers - may not be able to load trucks to optimal capacity Operating hours of importers o Tight delivery windows o Limits after hours delivery capability Priority to Industry / 10
11 Others influencing equipment you can use Request on door directions Influence and control by shipping lines Possible Solutions Increase use of rail to reduce requirement to access container terminals/ecps o Increased use of rail for dehires Encourage flexible delivery windows at importer premises o Develop after hours access arrangements with customers (e.g. obtain keys, access codes, etc) o Encourage longer delivery windows o More flexibility at wharf time slots o Works well with rail o Access (keys?) to premises outside hours - dehire o Cost savings for customers and transport company o Time - running costs o Less overheads o Potential noise complaints, community 'out of hours' o Potential OHS and chain responsibility o Staff - shift on costs Introduce common user agreements o Common user bulk run/tagged arrangements with carriers and terminals o Introduce common user staging facilities o Reduce transport costs o Allow smaller companies to utilise stack runs o Reduce number of trucks between port/ecps and staging area/facilities o Increase supply chain capacity o Increased efficiency o Increased costs to admin o End user cost increase o Shorter 'free time' Feasibility IUM feasibility Form of booking system encourages out of hours (benefit) Enterprise Connect - assistance/business review 11
12 Identified Issues & Possible Solutions - Wednesday 11 th September 2013 Container Terminal Operations & VBS Issues Delays at ECPs impacting ability to be on time to slots Impact of flexibility into the future, needing more discipline Lack of advanced bookings - exporters and importers should be able to plan/be aware in advance Terminal break times/variability of services (Complex issue to change) Unbalanced relationship between terminals/carriers Priority to Industry Possible Solutions Advance bookings - will have to know container number, helps planning for trans co, disruptions (eg weather etc) - can't just move all slots to the next day, issues for matching slots, dual bookings - import/export Peak pricing Incentives for two-way loading o May be unfair for exporters - could be two-way loading within port precinct however would require link between VBS and ContainerChain Incentives for high truck utilisation (containers per truck/movement) VBS Changes o Unfair on smaller carriers - ability for smaller carriers to grow, however if things continue as they are the number of carriers will increase o Freeing up space during the day for smaller carriers o Community/noise impacts o Low v peak behaviours o Hard having 1 booking system that suits all carriers o Better utilisation of trans co's equipment - spreading movements throughout the day o Ability to move more volume (twice the volume) during night compared to day o Will require increased staging or access to client premises (insurance/security issues) o Allocation of slots based on operating hours - need to know what containers you have got coming out - would only work for planning delivery to customers o Number of trucks that carriers have will effect the cycle time required ie those with less trucks will require longer cycle times - timing/scheduling of slots may be an issues Releasing import and export slots at different times - allow for booking imports 12
13 first then matching exports, will encourage 2 way loading Empty Container Parks & ContainerChain Issues Transport companies over booking slots Balance between flexibility and rules Advanced bookings - in other ports there is an ability to book a slot days in advance (information, communication) Delays FF/importers wearing the extra costs No coordinator role to increase dynamic planning Need for ContainerChain in off peak periods Quiet times there is flexibility, however in peak times there is not Priority to Industry Possible Solutions Rate carriers (through ContainerChain) on their efficiencies and reward/penalise accordingly Container parks don't accept bookings when no slots are available Educate shipping lines - bulk runs Display waiting times to public Incentive for early bookings Central coordinator for planning Increased automation of processes - e.g. gate house operations Case study of other ports eg move container parks off-port Feasibility Transport Operations & Supply Chain Coordination Issues Ability to coordinate between 1 stop and containerchain Supply chain communication information exchange Equity between large and small carriers large carriers incurring cost at night benefiting smaller operators during daylight hours Operating hours of carriers not aligned to terminal operating hours Difficulties matching export receival windows with import container availability limits capability to 2 way load 1 stop simplicity of entering bulk information Availability of off port dehire facilities Priority to Industry 13
14 Possible Solutions Common user facility - have to be close to wharf, more bulk/tagged runs will be possible Increase carrier use of bulk/tagged runs Incentives to operate at off-peak times Matching VBS/CC slots/global booking system Increase use of staging activities TMA usage o Rules would still be needed as capacity is limited - early/late arrivals VBS - scheduling issue for tagged runs Mix of flexibility and rigidity while booking slots Pre-gating trucks Business rules Feasibility IUM IUM 14
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