Report Shows Bump in Trucking Costs at Ports of Long Beach, Los Angeles
Port congestion is hitting Inland truckers in California in the pocketbook, according to a new report.
Gridlock at the twin ports of Long Beach and Los Angeles made big news in 2014 but dropped off the radar after the March resolution of a dockworkers labor dispute.
But volume and truck turn times at the ports remain high, resulting in the cost of drayage nearly doubling, according to the report by Nicole Moler and Jamil Harness for the real estate services company CBRE.
The study shows a 47% increase in average inbound rates from 2014 to July, from $429.16 to $634.34.
The Banning/Beaumont submarket showed the highest increase, 56%, $490 to $767.69.
Figures from the Harbor Trucking Association showed average turn times at 90 minutes in July, up from 62 minutes in October 2013.
“Prior to the lingering congestion, drayage drivers could make two to three trips to the Inland Empire per day depending on the final destination. Under current conditions, drayage drivers are lucky if they can make two trips to the Inland Empire in one day,” the report says.
The Inland Empire is situated directly east of the Los Angeles metro area and consists of Riverside and San Bernardino counties.
Drivers are passing costs along to clients as well as assessing surcharges from $60-$80 an hour, according to the report.
The report emphasized steps the ports are taking to reduce turn times but also noted an impact to the Inland Empire, since 70% of the containers are headed that way.