Freight Research: Identifying the Nexus Between Efficiency

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Freight Research Identifying the Nexus Between
Efficiency Security

• Dan Murray
• American Transportation Research Institute
• (formerly the ATA Foundation)
• Northwestern University

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Phase I - Testing an Air Cargo Security System

• Goals
• Efficient movement of air cargo
• Reduce potential for air cargo tampering
• Enhance air cargo security
• - Identification
• - Deterrence

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Phase II Electronic Supply Chain Manifest

• Private Sector
• Trucking, Aviation Manufacturing firms that
  together comprise complete real-world supply
  chains
• Technology Vendors
• Public Sector
• DOT Office of Intermodalism/FHWA
• Federal Aviation Administration/TSA
• Chicago Department of Aviation
• State of Illinois
• OHare Airport
• JFK Airport

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Phase II ESCM

• Internet-based alternative to manual air cargo
  manifest
• Biometric/Smart Card system authorization
• Manufacturer gt Motor Carrier gt Airline
• Improve Intermodal Efficiency
• Increase Intermodal Security

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ESCM Security Features

• Biometric fingerprint readers
• 8K 32K Smart Cards
• Security with 192 bit DES encryption
• System computers configured to prevent data
  tampering

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Findings - Efficiencies(Supported by
Independent Evaluation)

• Per Shipment estimated time and cost savings
  demonstrated by ESCM
• Time Savings Savings
• Manufacturer 6 min 13 sec 1.52
• Motor Carrier 14 min 14 sec 3.61
• Airline 11min 11 sec 2.72

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Findings - User Perceptions(Supported by
Independent Evaluation)

• ESCM system strengths cited by participants
  include
• Ease of use
• System reliability
• Ability to track loads and potentially improve
  scheduling, planning, and customer support
• Reduced paperwork and time on task
• One-stop source for shipment information

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Findings - User Perceptions(Supported by
Independent Evaluation)

• ESCM system weaknesses cited by participants
  include
• Limited number of supply chain partners using the
  system, limiting ESCM value
• Lack of ESCM integration with participants
  corporate legacy systems resulting in duplication
  of effort

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• UPDATE Advancing Intermodal Cargo Information
  Across Modes Regions (AKA Tacoma-Chicago
  Project)

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Project Background

• There are considerable inefficiencies that exist
  between shipping, rail and trucking.
• This project
• Technical Memorandum 1-Business
  Transactions Across Modes
• Technical Memorandum 2-Technology
  Utilization Across Modes
• Technical Memorandum 3-Dray Industry Issues
  and Opportunities

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Transportation Across Three Regions
and Three Modes
Ports
Rail


Chicago
Ports
Chicago
Rail
Dray Industry
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Technical Memorandum 1

• Ocean and rail transport and port operations
  have relatively few entities, moving great
  amounts of cargo.
• Drayage operations consist of a large number
  of small, decentralized firms transporting
  vastly lower cargo volumes than the other
  modes.
• Sophisticated processes and technologies
  used by water and rail modes.
• Less formalized processes and communications
  methods used in drayage operations.

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Participants
Port of Tacoma
Union Pacific BNSF

Chicago
Port Authority of NY/NJ
Norfolk Southern CSX
Angel Logistics Blackbird Terminals Central
States Trucking Cushing Transportation Donnelly
Transportation Hammer Express Horizon Freight
Systems Stack Container
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Technical Memorandum 2

• Numerous processes, technologies and systems
  used to support cargo movement.
• Level of technological sophistication varies
  greatly within and across modes.
• Vast incompatibilities exist in systems, data
  and information exchange among entities.
• Gaps exist in extent and timeliness of
  information exchange.

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Diverse (Legacy) Systems

Chicago

• Dray Systems
• Phone
• FAX
• Internet Email
• EDI
• Dispatch Support

• Port Systems
• EDI
• Terminal Mgmt. Systems
• Web Information Applications (FIRST, eModal,
  PIERS)

• Rail Systems
• EDI
• AEI
• Yard Mgmt. Systems (OASIS)
• Web Info. Applications (RAIL, Inc.)

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Myriad Supporting Data
Chicago

• Rail
• Rail Waybills
• In/Out Gate Events and Documentation
• Equipment Requests/Matching
• Equipment Staging
• Ramping
• Train Consists and Interchange Information for
  Interconnects
• Train Releases
• En-route Location Tracking with ETAs
• Train Arrivals
• De-ramping Grounding Notifications
• In/Out Gate Events Documentation

• Ports
• Booking Information
• Manifests
• Shipping/Forwarding Instructions
• Stow Plans
• Ship Schedules/ETAs
• Ship Arrivals/Departures
• Customs Status
• Container Event Status
• Equipment Requests/Matching
• Equipment Staging
• Rail Status Train Consists (if Rail at Port)
• In/Out Gate Events and Documentation

• Drayage
• Pre-Notification of In-Bound Loads
• Equipment Requests
• Train/Shipment Tracking
• Pick up and Delivery Notification

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Numerous Information Flows
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Numerous Information Flows
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Technical Memorandum 3

• Identified key issues - areas for improvement.
• Most important area is improved notification
  and load-tracking capabilities to improve
  planning and resource allocations.
• Inefficiencies are not localized to the Chicago
  area, therefore improvements should allow for
  cargo visibility across the full supply chain.

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Solution - A Global Approach

• Minimum Technical Requirements
• Internet Platform
• System Standards
• System Integration
• One Source - a National Intermodal
• Portal?

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Solution - A Global Approach

• Institutional requirements
• Willingness by all parties to broaden scope
• of existing systems
• Development of New Business Model
• Agreements and/or legislation providing for
  adequate data privacy and acceptable access and
  use of information

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Benefits to Stakeholders

• Government - Greater transportation system
  efficiency - Improved cargo security
• Transportation Service Providers - Improved
  advance utilization planning - Customer
  service and cargo tracking enhancements -
  Enhanced security vis a vis early load-specific
  information and chain of custody tracking

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Inland Port Security Program

• Existing Programs Focused on Coasts
• Existing Programs Allow Freight to Move inland
• Successful Program Must be Cost-Effective
• At the Present Time, Must be Industry-Centric
• Must Have Clear Objectives

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Inland Port Security Program

• Multi-Modal Team (Rail, Truck, Ship, Ports
• Multiple Technologies
• Existing
• Emerging
• Public-Private Team, but Industry- Designed
  Controlled
• National Impact / Coast-to-Coast

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For More Information

• ATRI-ONLINE.ORG
• DMURRAY_at_TRUCKING.ORG