Twenty year trucker on why the shipping crisis will not end soon
Over at Medium Ryan Johnson has a comprehensive article that goes through just about every level that affects the supply chain crisis we are in. Your Irascible Correspondent has witnessed how long it takes to get into and pick up a delivery at the huge customs warehouses, even though the forklifts are zipping around like crazy hummingbirds on crack. As of yesterday we have 110 ships waiting off the coast to unload cargo, a new record. This crisis has been a long time coming and it is going to be a long time getting cleaned up.
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.
There’s more, much more and every scrap of it is worth your attention.