Port Proposes Shift in Cargo "Free Time"

LONG BEACH, CA—The Port of Long Beach has proposed a new policy to change cargo delivery time at the dock, known as "free time," from four days to six shifts, which would be known as "flexible free time." The change would help to expedite cargo delivery, which is reaching record-breaking numbers. If the plan is approved by the Board of Harbor Commissioners, the Port of Long Beach would be the first in the world to use shifts instead of days to measure the time that cargo containers sit at the dock without being charged.

The port proposed the solution in response to the call for faster delivery times and increased availability. "The bigger shifts are bringing in more volume at one time, and they are essentially causing a high inventory of containers at our terminals. That is putting a strain on our terminals' ability to deliver containers quickly," Noel Hacegaba, chief commercial officer at the Port of Long Beach, tells GlobeSt.com. "By changing from days to shifts, you are giving the cargo owners the flexibility to decide how many shifts per day they will be offering depending on their cargo inventory levels. The advantage for the cargo owners is that depending how many shifts the cargo owner makes available, they'll have anywhere from three to six days to collect their container."

Hacegaba doesn't view this change as a reduction in free time but rather a different time-keeping method, although it could be the equivalent of as little as three days of free time. "Obviously, a concept like this would require greater and enhanced coordination between the marine terminal and the cargo owner. We want to understand the operational changes that this concept would require, but we also want to understand how something like this would affect their other operations. Our whole intent is to improve the system and to make life easier for the terminal operators and for the cargo owners, and that is why we want to approach this in a very deliberate way by engaging all of our stakeholders and soliciting their feedback."

The port is still far from implementation. After discussing the proposal with the stakeholders, a final plan would go to the Board of Harbor Commissioners for a vote. Once approved, Hacegaba assured that there would be a slow roll out period to curb any potential issues and allow cargo owners to make adjustments to their operations. "In order to define the effective date and the roll out date, we would get input from all of our operators," he says. "The goal here is to make things easier for them, so we will make sure that the concept evolves. As we generate more input, when we start looking at things like implementation and roll out, we want to make sure that we give every consideration to the cargo owners and their operations."

The last change in free time was made in 2005 when the port reduced cargo time at the dock from five days to four days, where it stands now. At that time, the port also made the decision to begin the free time clock as soon as an individual container was discharged, rather than the whole vessel, to further condense the time and increase cargo speed flow. This change, however, which restructures the free time system rather than just reducing it, is new for the port. "This change going from days to shifts is new," he says. "It is completely innovative and it has never been done before, and we would be leading the industry with this change."