The American shipping crisis has been making news all over the world and has been the subject of discussions across many media platforms and the industry..
Even US President Joe Biden commented on the supply chain disruptions and set up task teams to find solutions for the problems.. Biden announced a number of steps to achieve this objective including moves by the nation’s two largest ports Los Angeles and Long Beach to expand to 24-hour operation, and also to ramp up efforts by big conglomerates like Walmart, FedEx, UPS, Samsung, Target, and The Home Depot for quicker cargo clearance..
There have been several commentaries across the whole spectrum of the supply chain from various experts from shipping, freight forwarding, trucking, and trade backgrounds..
However, none of the discussions and explanations seem as lucid as the message conveyed by a 20 year veteran US truck driver.. I am sharing below, the article was written by Ryan Johnson wherein he gives his perspective on the situation and why he feels that America’s “Shipping Crisis” will not end unless…………………
Ryan Johnson’s perspective
I have a simple question for every ‘expert’ who thinks they understand the root causes of the shipping crisis: Why is there only one crane for every 50–100 trucks at every port in America?
No ‘expert’ will answer this question.
I’m a Class A truck driver with experience in nearly every aspect of freight. My experience in the trucking industry of 20 years tells me that nothing is going to change in the shipping industry.
Let’s start with understanding some things about ports. Outside of dedicated port trucking companies, most trucking companies won’t touch shipping containers. There is a reason for that.
Think of going to the port as going to Walmart on Black Friday, but imagine only ONE cashier for thousands of customers. Think about the lines. Except at a port, there are at least THREE lines to get a container in or out. The first line is the ‘in’ gate, where hundreds of trucks daily have to pass through 5–10 available gates. The second line is waiting to pick up your container.
The third line is for waiting to get out. For each of these lines, the wait time is a minimum of an hour, and I’ve waited up to 8 hours in the first line just to get into the port. Some ports are worse than others, but excessive wait times are not uncommon.
It’s a rare day when a driver gets in and out in under two hours. By ‘rare day’, I mean maybe a handful of times a year. Ports don’t even begin to have enough workers to keep the ports fluid, and it doesn’t matter where you are, coastal or inland port, union or non-union port, it’s the same everywhere.
Furthermore, I’m fortunate enough to be a Teamster — a union driver — an employee paid by the hour. Most port drivers are ‘independent contractors, leased onto a carrier who is paying them by the load. Whether their load takes two hours, fourteen hours, or three days to complete, they get paid the same, and they have to pay 90% of their truck operating expenses (the carrier might pay the other 10%, but usually less.)
The rates paid to non-union drivers for shipping container transport are usually extremely low. In a majority of cases, these drivers don’t come close to my union wages. They pay for all their own repairs and fuel, and all truck-related expenses.
I honestly don’t understand how many of them can even afford to show up for work. There’s no guarantee of ANY wage (not even minimum wage), and in many cases, these drivers make far below minimum wage. In some cases, they work 70 hour weeks and still end up owing money to their carrier.
So when the coastal ports started getting clogged up last spring due to the impacts of COVID on business everywhere, drivers started refusing to show up. Congestion got so bad that instead of being able to do three loads a day, they could only do one.
They took a 2/3 pay cut and most of these drivers were working 12 hours a day or more. While carriers were charging increased pandemic shipping rates, none of those rate increases went to the driver wages. Many drivers simply quit. However, while the pickup rate for containers severely decreased, they were still being offloaded from the boats. And it’s only gotten worse.
Earlier this summer, both BNSF and Union Pacific Railways shut down their container yards in the Chicago area for a week for inbound containers. These are some of the busiest ports in the country. They had miles upon miles of stack (container) trains waiting to get in to be unloaded.
According to BNSF, containers were sitting in the port 1/3 longer than usual, and they simply ran out of space to put them until some of the ones already on the ground had been picked up. Though they did reopen the area ports, they are still overcapacity. Stack trains are still sitting loaded, all over the country, waiting to get into a port to unload. And they have to be unloaded, there is a finite number of railcars. Equipment shortages are a large part of this problem.
One of these critical shortages is …………………