Resistance to port productivity metrics a disservice to shippers

Mark Szakonyi, Executive Editor, JOC.com | Jul 31, 2016 9:00AM EDT

The fierce resistance to a U.S. shipper-supported effort to determine how best to monitor port productivity reflects somewhat justified fears that such metrics could be used unfairly in longshore negotiations and to draw unreasonable comparisons between ports. But the intensity of the push-back displayed at a mid-July meeting by some of the very stakeholders tasked by Congress to make recommendations on how to monitor port productivity also smacks of an industry afraid to turn a critical eye on itself, and happy to keep finger-pointing.

That’s an insult to shippers that have little, if any, control over whether labor, terminals and railroads come together to curb port congestion. The showdown between U.S. West Coast longshoremen and waterfront employers that nearly crippled ports from Long Beach to Seattle is over. The threat of congestion still looms, however, to ports that are crucial to keeping the U.S. economy — and to a lesser extent, the broader global economy — running. The push-back by members of the Port Performance Freight Statistics Working Group also flies in the face where the rest of the business world is heading: Creating metrics out of data to track performance and make more informed decisions.

Metrics aren’t going to save the day, but they provide a quantitative complement and a common language on how to measure productivity as ports adopt best-practices and working groups explore trucking appointment systems and new technology. In fact, the data for the proposed metrics are already available — just not collected on a national scale. Many working group members shut down the idea of looking at crane moves, choosing instead to focus on port and terminal capacity, instead of velocity of cargo movement.

The barometers, to be delivered annually by the Bureau of Transportation Statistics to Congress, will provide a glimpse into whether port productivity is improving or worsening, and what links in the containerized supply chains most need shoring up. The report — in which port authorities, labor, terminals, railroads and too few shippers are giving their views — will also keep the issue of port productivity in front of legislators, who can boost infrastructure funding and freight network planning.

Considering that the original congressional push for metrics began as a way to determine whether port productivity declined during labor negotiations, the International Longshoremen’s Associations and International Longshore Warehouse Union are naturally suspicious. The marching orders to BTS have changed, however, taking out that provision. Besides, the BTS is looking to collect already-available data, which is often used at the bargaining table by waterfront employers. 

Another argument against the creation of metrics is that there are too many factors to calculate, and major industry changes, from new shipping alliances to larger ships, make it impossible to lock down productivity levels and compare them on an annual basis. That line of reasoning suggests that port productivity is something that can’t be measured — even if the barometers give indications of productivity, rather than a definitive calculation of the speed in which cargo moves from the ship to outside terminal gates. And the dramatic industry changes challenging port productivity are precisely why the industry needs to measure performance in order to put these forces into context.

There is also fear that the metrics will allow the industry to make unfair comparisons of port productivity, disregarding each port’s different terminal capacity, intermodal rail capabilities, crane sizes and other factors. Making mistaken assumptions using metrics is a collateral risk anytime something is being measured, but concern of spurious conclusions shouldn’t stop the industry from trying to gauge.

The creation of port productivity metrics isn’t going to be easy, and it’s going to take increased trust from labor, marine terminals, port authorities and railroads. Instead of resisting the inevitable measuring of productivity, no matter how painful and embarrassing it might be for some, the industry should embrace the opportunity to show its customers, shippers, that it understands their plight and wants to help.

“This legislation was called for by numerous cargo owners because of perceived and real lack of transparency,” said Gene Seroka, executive director at the Port of Los Angeles. “We in the industry put ourselves in this position.”