MAJOR US ports have urged the Biden administration actively incentivise the start of an extended terminal gate times, reports IHS Media.
'When ports commit to longer gate hours, the government should incentivise other players in the system to use that opportunity,' said seven directors of major ports in a letter to the US Commerce Department.
If the government sees port congestion as an economic threat, the port directors reasoned that it would warranted to deploy the National Defense Authorisation Act of 2021.
That could be used to mandate force shippers and truckers to use night and weekend gates and reimburse port authorities.
'The 'incentives' mean the government should support the operational changes at ports and continue bringing all supply chain players and users together, as it is laudably trying to do,' the port directors wrote to the supply chain advisory committee that advises the US Department of Commerce.
'For example, when ports commit to longer gate hours, the government should incent other players in the system to use that that opportunity,' the letter said.
The port leaders stressed how they are making operational commitments. Those comments serve as a challenge to railways, truckers, and major shippers to make their own commitments to ease congestion, given the interconnectedness of shipping when shifting terminal visits to off hours when warehouses may not be open.
Port directors urged President Joe Biden to use his 'bully pulpit to encourage and possibly incent cargo owners and truck/rail transport providers to make use of the extended hours to ease freight congestion.'
'Longer hours are meaningless if customers or downstream entities do not use them, or if labour costs are prohibitive,' wrote the port leaders, whose gateways handle nearly 80 per cent of US container volumes.
More than three weeks after the ports of Los Angeles and Long Beach launched an effort to extend gates at night and on weekends, terminal operators say they're getting little traction from shippers and consignees.
With 15 consecutive months of record and near-record import volumes that are forecast to?continue into next year, marine terminals see little signs of relief ahead.
Mario Cordero of Long Beach and Gene Seroka of Los Angeles signed the letter along with the heads of five other major ports: Danny Wan of Oakland, John Wolfe of the Northwest Seaport Alliance, Sam Ruda of the Port of New York/ New Jersey, Stephen Edwards of Virginia, and Griff Lynch of Georgia Ports Authority.
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'When ports commit to longer gate hours, the government should incentivise other players in the system to use that opportunity,' said seven directors of major ports in a letter to the US Commerce Department.
If the government sees port congestion as an economic threat, the port directors reasoned that it would warranted to deploy the National Defense Authorisation Act of 2021.
That could be used to mandate force shippers and truckers to use night and weekend gates and reimburse port authorities.
'The 'incentives' mean the government should support the operational changes at ports and continue bringing all supply chain players and users together, as it is laudably trying to do,' the port directors wrote to the supply chain advisory committee that advises the US Department of Commerce.
'For example, when ports commit to longer gate hours, the government should incent other players in the system to use that that opportunity,' the letter said.
The port leaders stressed how they are making operational commitments. Those comments serve as a challenge to railways, truckers, and major shippers to make their own commitments to ease congestion, given the interconnectedness of shipping when shifting terminal visits to off hours when warehouses may not be open.
Port directors urged President Joe Biden to use his 'bully pulpit to encourage and possibly incent cargo owners and truck/rail transport providers to make use of the extended hours to ease freight congestion.'
'Longer hours are meaningless if customers or downstream entities do not use them, or if labour costs are prohibitive,' wrote the port leaders, whose gateways handle nearly 80 per cent of US container volumes.
More than three weeks after the ports of Los Angeles and Long Beach launched an effort to extend gates at night and on weekends, terminal operators say they're getting little traction from shippers and consignees.
With 15 consecutive months of record and near-record import volumes that are forecast to?continue into next year, marine terminals see little signs of relief ahead.
Mario Cordero of Long Beach and Gene Seroka of Los Angeles signed the letter along with the heads of five other major ports: Danny Wan of Oakland, John Wolfe of the Northwest Seaport Alliance, Sam Ruda of the Port of New York/ New Jersey, Stephen Edwards of Virginia, and Griff Lynch of Georgia Ports Authority.
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