Jason Hilsenbeck LoadMatch & Drayage.com President Founder

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Jemima Stanley
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1 Jason Hilsenbeck LoadMatch & Drayage.com President Founder

Phonebook of Draymen 2000+ unique draymen profiles listed (last year at this time was 1900 draymen) Search draymen in USA & Canada for chassis, haz-mat,

2 Phonebook of Draymen unique draymen profiles listed (last year at this time was 1900 draymen) Search draymen in USA & Canada for chassis, haz-mat, transloading-warehousing, customs bonded, parking, CY operations, SCAC, TWIC, dry / refrigerated / household / tank drayage Blast an out to a group of draymen that matches your requirements 2

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6 Intermodal Equipment Matching Drayage truckers post having empty containers Shippers/Freight Forwarders/Ocean Lines/IMCs post loads needing containers or XML message is sent to each party when a posting matches a need with a have Free to post no transaction fees Street Turn or Match Back 6

7 Since 1999, our goal is to provide visibility online of container capacity and loads to the Intermodal - Import/Export community Full Membership is flat $50 per month Independently owned; not affiliated with any customer or vendor LoadMatch doesn t broker and doesn t own any trucks 7

8 We get to hear from many, many draymen all over the U.S. and Canada of the operational challenges they face. Each city metro has unique issues, but throughout both countries, coast-to-coast, at both rail and port terminals, two complaints stand out: 1. Gate Throughput 2. Ocean Chassis Pool Condition 8

9 Line to Maher Terminal Feb 2014

10 Line to Maher Terminal Feb 2014

11 Entrance Gate throughput ALWAYS needs to keep up with internal lift machine capacity Increase total number of gates OR decrease check-in process time * Terminal throughput should never be gate challenged * Speed Gate where extra fee paid to access separate gate (an express line)? 11

12 Lunch break closures? Really? How much does that lunch break really cost considering the idling of assets of the terminal and cost of wait time of the trucking assets? 100 trucks waiting for 1 hour x $50 /hour per driver + asset is $5,000 /hour for that lunch break! Would it be worth a contract negotiation to increase union workers pay and not have a closure during the middle of the day? 12

13 Everyone in the biz knows the ocean chassis issues, but the question remains: where will the money come from to improve ocean container chassis pool conditions? (other than truckers paying for chassis tires!) With the condition of ocean container chassis pools as they are now, it is no surprise the failure of terminal operations under stress of cold weather. 13

14 CSX Cleveland ramp, note snow mound blocking aisle, no access Feb 2014

15 Consolidation of chassis into pools means a reduction in overall count of ocean chassis. * pooled effect means fewer chassis are needed for the number of containers moved better utilization but tradeoff is less cushion for spikes in demand. Colder the weather = the bigger the spike in demand. Why are more chassis needed in cold weather? 15

16 16 When receiving companies are closed due to bad weather, it takes longer for containers to be unloaded. Containers wait longer for delivery appointments, and on drop accounts takes longer to be unloaded. Effect is that many chassis are removed out of the pool. When train length is reduced, loaded containers are left behind sitting on wheels within the terminal, waiting extra days to get loaded onto a train. Effect is that many chassis are removed out of the pool.

Terminals won t voluntarily remove containers off chassis within their terminal because who will pay for that lift off, and the lift back on? Effect is chassis are removed out of the pool.

17 Terminals won t voluntarily remove containers off chassis within their terminal because who will pay for that lift off, and the lift back on? Effect is chassis are removed out of the pool. When cold weather creates longer terminal turntimes for the draymen (blocked aisles, buried containers, long gate lines, long lift lines) draymen are less likely to terminate empty containers. Effect is chassis are removed out of the pool. 17

18 Good chassis are taken out of the terminal if those good chassis are slower to come back, the percentage of chassis needing repair within the terminal goes up. If greater percentage of chassis left in terminal need repair, it takes draymen longer to get chassis road-legal and outgate, creating longer turn time. 18

19 19 As fewer good chassis return to the terminal, more chassis needing repair are what remain, creating longer turn times, more congestion. Congestion makes draymen even less likely to terminate good chassis back at the terminal, accentuating the shortage, creating a spiraling, out-of-control situation at the terminal.

20 At 4x per month chassis loads: 30,000 chassis pool will move 120,000 containers per month If loads per chassis go down 3 x per month: 40,000 chassis are now needed to move 120,000 containers! (just 2.5 days longer has that effect!) * Who will pay for 10,000 more chassis? * Where do you source them for three months, then store them when turn times shorten? (don t count chassis that are in the pools that never get used) 20

21 Chassis pool operators need to understand how percentage of chassis needing repair effects entire terminal throughput. (will there ever be 100% good order chassis pool?) RULE: the longer driver throughput, the longer it takes to get those good chassis back. PREPARE: no surprise, but Dec, Jan, Feb are cold. Once big winter storms hit, it s too late to improve the quality of your chassis pool. 21

22 If chassis get dislocated, bring them back! There are always power units available, just a matter of effort put in by your pool coordinator and price to get it done. (Provide the chains and binders to the driver if stacking chassis. Blast an out to the Drayage Directory asking for power.) Make an incentive to terminate empties (ie: offer $25 for certain boxes or chassis if terminated at certain days/hours). Open up gate off hours for empty termination. 22

23 Make a penalty for keeping chassis extra days (ie: after 7 days outgate, increase chassis rental to $40/day, after 14 days make $100/day) That will get chassis back! * Normal turn time on chassis: 5-8 days * Since January in Midwest and East Coast: 12, 15 and upwards of 20 days in some areas before chassis are returned. 23

24 Why not send a mechanic out to proactively prep chassis rather than waiting for a driver to identify what to repair? (How can there be 500 chassis at Maher and none roadable / ready to go after three months?) If you won t make chassis road-legal ahead of time, pay the repair person per job done, not per hour. 24

Jason Hilsenbeck President LoadMatch & Drayage.com Naperville, IL www.loadmatch.

25 Jason Hilsenbeck President LoadMatch & Drayage.com Naperville, IL = Equipment Matching = Phonebook of Draymen x114

V I r g I n I A. T h e M A g A z I n e O f T h e P O r T O f V I r g I n I A. November- December 20 09

V I r g I n I A. T h e M A g A z I n e O f T h e P O r T O f V I r g I n I A. November- December 20 09 V I r g I n I A November- December 20 09 T h e M A g A z I n e O f T h e P O r T O f V I r g I n I A Re-printed with the permission of the Port Authority of Virginia. The Port at Work Part Ten in a series