Integrating Terminal Gate Appointment Systems at the Port of Los Angeles

Abstract

This research highlights how container terminal fluidity is impacted by the way containers are loaded at the port-of-origin and then unloaded and stacked at the port-of-destination and its terminals. If this loading, unloading, stacking, sorting and re-stacking are pursued in ways that “optimize” terminal, trucker, drayage, chassis provider, and BCO needs (not just ocean carrier needs and priorities), then appointment systems can make a significant difference and add value. However, this requires the parties to share more data (and earlier in the process), so that downstream logistics participants are given sufficient time to plan their operations and adjust. When this does not occur, and given the other “cascades” and their effects discussed in this report, there may be little that appointment systems and new digital technologies can do to improve port and marine terminal fluidity. This report, using the Port of Los Angeles and its container terminals as a case study, illustrates what can and cannot be realistically achieved with the utilization of new digital technologies when seeking to enhance appointment system productivity. Based on our findings this research offers the following recommendations:

Recommendation 1: The creation of a limited number of terminal (import) container stacks (piles) accompanied by the designation of a limited number of trucking companies (or trucking company consortiums) to those piles for appointment assignment and container pickup.

Recommendation 2: Utilize peel-off piles for import container pick-up. In the short term, peel-off piles (whether on-dock, off-dock, or near the port) can help decrease truck turn-times, increase the number of turns truckers can make each day (including empty and export drop off), and thereby help decrease port and terminal congestion.

Recommendation 3: Further study, develop and implement more push appointment systems across all terminals, supported by common business and appointment rules.

Recommendation 4: Convene a one-day virtual Summit, focusing solely on the business-model needed to support improved terminal appointment systems at the West Coast Ports of Los Angeles, Long Beach and Oakland, with said Summit and business-model discussion being API-focused.

Recommendation 5: To support Recommendations 1-4, advocate for the use of federal and state infrastructure funds to incentivize each Recommendation, thereby helping stakeholders build out the technology ecosystem needed to improve port and terminal cargo velocity.

Keywords: Port congestion, terminal appointments, appointment systems, container stacking, technology, data, data sharing, APIs

JEL Classification: M15, M21, O14, O18, O21, O31, O32, O33, O38, Q13, Q16, Q17, R11, R14, R40, R41, R42, R51, R52