NEXT Trucking, a FreightTech pioneer that connects shippers and carriers, has struck an agreement to open an 18-acre drayage facility to ease congestion at the ports of Los Angeles and Long Beach, the two largest seaports in the US.
According to a statement, the new facility, set to be less than 10 miles from the Port of Long Beach, will allow NEXT to combine its physical assets and proprietary technology to offer unique solutions that “address drayage pain points”.
Delays in drayage, the first step in the supply chain which sees goods moved from the port, costs the industry approximately US$350 million a year.
A recent Port Technology technical paper looked at the issue of the maritime supply chain and where it can be improved
These delays, according to NEXT, are caused by a multitude of factors, including increased container capacity on cargo ships and the limited number of truck drivers who are licensed to enter the ports.
Credit: NEXT Trucking
The new facility, NEXT says, will increase the efficiency of its Relay program, an initiative which allows trucks to shuttle containers to the new yard and bring empty ones back. As well as increasing throughput, this also cuts emissions.
NEXT says shippers in the Relay Pilot program have seen an increase 167% in containers pulled with greater end-to-end visibility, with drivers enjoying a 20-25% spike in income.
Lidia Yang, CEO, NEXT, hailed the potential of the new facility and the success of Relay: “We’re creating a solution to ease congestion and eliminate the biggest choke-point throughout the shipping industry.
“Relay has been tremendously successful in its pilot program, and with the new facility, we’ll further scale our approach to provide value for shippers and carriers.”