Port Efficiency's Little-Known Tipping Point: Turnaround Time

Ports are the gateways of global trade. It is then essential that the flow of cargo from port to truck is as efficient as possible. But in the real world, it's always more complicated. Turn times can vary depending on the type of cargo, location and port. In order to get the most efficient flow of goods, it is essential to consider improving truck and container turn times and prevent potential delays, which result in disruptions further down the supply-chain.

A port is a complex network of infrastructure that connects the sea and air with the land, making it possible to ship products and cargo. A vital link in the flow of goods, port management can be challenging – as well as exciting. Freight is loaded from one arrival point and transported to the next destination, so organization and time efficiency is essential. The terminal management role is a vital one in the supply chain and should be given the respect it deserves. Any errors that occur at the ports can lead to delays, detention costs and congestion. In order to effectively manage ports, it is important that an organized system is in place and that regulations are followed.

Turn Time and the Port Process 

The supply-chain depends on the flow of cargo from port to destination running smoothly and efficiently. Cargo which ends up at the ports is not yet at its final destination, so any delays in this area can affect further delay of delivery of these goods, and thereby disrupt the supply-chain in a larger sense.  When we take into account container dwell time as well as truck dwell time, we can understand where potential delays or issues may be arising and thus take steps to alleviate any issues. Some of the most common negative effects that turnaround time has at the ports includes:

Congestion Issues

When we have a long turnaround time, it slows down the outward flow of cargo from the ports which can lead to congestion and a disruption in the entire operation.

Inefficient Use of Trucks

We can often see bottlenecks occur in the case of trucks coming in and out of ports, when it comes to turn time. This is due to the fact that a truck taking longer to exit the port will impact the trucks coming in, and thus the loading and unloading process as well as security checks are affected. The increased turnaround time will decrease the efficiency of both the port and the truckers time, as now they have to wait longer to complete their loading or unloading, wasting gas and time, and the drivers are often not compensated for their time waiting which decreases their profit.

Increased Costs

It is costly to have delays at the ports, from both a logistic and business perspective. A higher turnaround time for trucks leads to decrease in their ability to make a profit, as they spend a long time waiting to load or unload. The time taken to load and unload can also then disrupt matters further down the supply chain, leading to increased freight charges and logistics costs. The longer it takes to load or unload a container, the more likely cost inflation may occur. As well, detention or demurrage charges come into play; if a container is sitting at the port for longer than its assigned time due to delays, it will incur fees.

Transport Delays

If it is taking a long time for ports to cycle out cargo, then incoming vessels are left without room to unload their stuff into storage, causing extensive delay. The vessels then will have to wait longer for the port to clear existing freight, in order to make room for incoming ones, which can delay shipping and delivery times significantly.

Improving Turnaround Times 

In order to understand how to improve turn times, it is essential to note what causes potential delays or disruptions in the process. Most often, complex loads, such as mixed pallet loads, and difficult check-in procedures contribute to longer waiting times and thus slows down the process. In order to improve turn times, it is important to consider how to address some of these weak areas. Some common or popular suggested ways to improve turnaround time includes:

Using Real-Time Data

The most effective way to make ports more efficient is to use available real-time data to help organize and make the process flow more easily. The data can help predict truck wait times, as well as provide insight into the most efficient way to schedule staff and truck appointments. By using the real-time data, we can optimize the port process, determine the most efficient gate locations, a better working schedule for trucks, and improve the loading processes. 

Outsourcing Tasks and Allowing Technology To Simplify

It is also important to work on simplifying the process by outsourcing some of the tasks, to make up for the challenges ports face. Outsourcing truck registration or even simplifying the check-in procedures by using paperless check-in technologies, and using different locations for check-ins, such as outside of the container terminal for instance, can alleviate some issues. This will allow for faster turnaround time. Automation technology such as container tracking can also help the process stay on task and avoid delays, thus helping ensure a smooth flow of cargo. 

Accurate ETAs

The biggest ports in the world are huge in size and have a massive volume of cargo. As such, operations planning is a very important process that has to be done ahead of time. Port efficiency can be improved by providing more accurate estimated times of arrival, as it allows port management to prepare for a vessel’s arrival by looking into berth allocation, availability of storage facilities and scheduling with trucks in the most efficient manner, to avoid congestion.

Using data, we can also track and find the most efficient locations for trucks to go towards. The data can help shift a truck from its original route toward a more efficient one based on insight of what's happening at the terminals.

Adding More Resources

Even the most efficient ports can benefit from more equipment such as lifting cranes to speed up the time it takes to unload containers. Updating old equipment to prevent breakdowns or errors also helps. Taking it a step further, we can also utilize more resources or technologies to simplify the gate entry process, or add more gates for registration, so that trucks do not need to stop and wait as long, rather they can verify more easily and go through.

When you think about it, the supply chain is like a village. The longer an item stays in one place, the greater the chance that problems will arise. And what's more—you can help accelerate progress by reducing dwell time at reasonable cost. 

The key to making your supply-chain as efficient as possible is ensuring that it operates smoothly. When freight is delayed, it can mean higher costs for businesses and lost sales, as well as a shortage of goods. Downtime can be a big disruptor for supply chain efficiency. From assembly to shipping, every link in the supply chain can play a part in reducing dwell time. The best way to streamline operations and improve sustainability is by keeping products moving.