Research

Project Number:
01-5

Research Project:
Reengineering the Logistics of Empty Cargo Containers in the SCAG Region

P.I. Name & Address:
Hanh Dam Le Griffin
Civil Engineering
University of Southern California
210 Kaprielian Hall
Los Angeles, CA 90089-2531
Tel: (949) 653-6590
Fax: (213) 744-1426
Email: hdle@usc.edu

Project Objective:
This project is intended as the first of a series of projects on Logistics Networks for Empty Cargo Containers in the SCAG region.This initial project will focus on defining existing logistics practices with respect to empty containers, and the structural or institutional circumstances that are shaping the movement of empty containers within the SCAG region.Subsequent projects will develop detailed mathematical models for optimizing the movements of empty containers and present policy suggestions designed to mitigate highway congestion and negative environmental effects associated with repositioning empty containers.

A key objective of this project is to understand the current logistics of empty containers related to the movement of cargo through the ports of Los Angeles and Long Beach.This analysis can in turn be used to assess the impact that these practices have-in terms of congestion, level of service, pavement degradation, environmental impacts, and public safety-on Southern California's highway network, and more specifically on the I-710 corridor.The initial phase of the overall project will produce a survey of logistic practices and industry structures presently in place, and, based on the knowledge generated by this survey, identify directions for system optimization and rationalization that would work to reduce the number and distance of empty container movements; thereby mitigating the environmental impacts and traffic system congestion associated with these movements.

This project will investigate two aspects of the existing logistics system for handling the movement of empty containers: (1) the physical movement and storage of empty containers, and (2) established structural or institutional arrangements and practices. Physical movements and storage involve decisions relating to empty container movements (on season and off season); empty container truck trips; the location and capacity of freight facilities-such as container yards at carrier terminals, intermodal facilities, warehouses, distribution centers; and other related facilities located within the SCAG region.Structural issues pertain to container ownership, financial liabilities associated with the repositioning empty containers, contractual and operational arrangements between carriers and shippers, carrier initiated rate incentives to reduce the number of empty containers, and other information related to the current management system for repositioning empty containers.Taken together, examination of these two aspects of the logistics system are likely to disclose some clear opportunities for rationalizing operations, and reducing the total number of empty container trips.Identification of these opportunities for optimization is essential to the formation of subsequent investigations.

Task Descriptions:
1.Review and research available data (9/1/01-10/1/01)
2.Design and pilot test survey instrument and information/data collection method (11/1/01-11/31/01)
3.Survey the system of cargo movement in general, including international trade and cargo movement statistics, and the physical location and operations of freight facilities (12/1/01-1/31/02)
4.Field survey and interviews: Ocean carriers, trucking companies, terminal operators at the port of Los Angeles and Long Beach, freight consolidator and freight forwarders and container leasing companies(2/1/02-4/30/02)
5.Analysis of data collection and interview results (5/1/02-5/31/02)
6.Preparation ofdraft final report(5/31/02)

Milestones, Dates:
Final Draft Report by 6/31/02

Total Budget:
$20,000

Student Involvement:
One Research Assistant @ 25% time for 4.5 months

Relationship to Other Research Projects:
Related to 99-20, 00-17;Part of goods movement and international trade focus area

Technology Transfer Activities:
Project will include collaboration with Ports of Los Angeles & Long Beach; Project report will be posted on website

Potential Benefits of the Project:
More efficient container flows, reduced freight-related congestion

TRB Keywords:
Container handling, cargo logistics

Primary Subject:
Transportation and logistics systems operations and management

Goals:
Economic growth and trade

Enabling Research:
None

Modal Orientation:
Maritime, rail, highway