The Port of Los Angles is launching a new incentive programme to move trucks faster and more efficiently through its terminals.

Port of Los Angeles

A new incentive programme at the Port of Los Angeles is anticipated to help ease congestion. Photo: Port of Los Angeles

From 1 February, the Port of Los Angeles’ Truck Turn-Time and Dual-Transaction incentive programmes will offer terminal operators two ways to earn financial rewards: one for shortening the time it takes to process trucks dropping off and/or picking up cargo, and the other for trucks handling both transactions in the same trip.

“These best practices are needed now more than ever to relieve pressure on the supply chain due to the ongoing surge,” said port executive director Gene Seroka. “Ports are more fluid when trucks move quickly in and out of the gates and more productive when a truck delivers one container and leaves with another in a single trip. We’re going to reward terminals for better performance.”

Container congestion

Drayage trucks handle approximately three-quarters of all import and export containers moving through the Port. In recent months, imports have dominated the flow of cargo, draining the market of containers needed for exports. The imbalance has also reduced the number of chassis in circulation, caused inbound containers to stack up on terminals, and slowed the movement of trucks in and out of terminals.

Under the new incentive programme, terminals that improve truck turn times by 5% to 20% can earn between 50 cents and US$2.75 per loaded or empty TEU. The rate of the reward increases on a sliding scale as terminals improve turn times. If a terminal averages turn times of 35 minutes or less in a given month, it will earn the top rate of US$3 per loaded or empty container.

Additionally, terminals can earn between 40 cents and US$1.40 per loaded TEU when at least half of all trucks calling their facilities drop off one container and depart with another on the same trip. The percentage is based on the number of dual transactions out of all gate moves for the month. Like the turn-time incentive, the rate of the reward increases as the terminal’s percentage of dual transactions grows.

To participate, container terminals must opt in and provide additional details on truck moves. The data will be collected and processed by the Port Optimizer tool.