Port congestion management is a complex operational and logistical problem that’s affected the industry on and off for decades.
The issue reached a fever pitch in 2021 when a perfect storm of skyrocketing consumer demand for foreign imports clashed with stagnating global supply chains. The culmination of these factors led to an unprecedented logjam. Hundreds of cargo ships were left queuing off the coasts of Los Angeles and Long Beach.
This was just one incident among many across the country. But this one, in particular, served as a wake-up call to the world, spotlighting the severity of port congestion management. Although we’ve made some progress since the peak of 2021, and volumes have dropped, the road to optimal efficiency is still being paved.
This is where terminal operating systems (TOS) can help. These powerful solutions could play a key role in unclogging ports, making way for a smoother, more efficient flow of global commerce.
What Is A Terminal Operating System?
Configurable marine terminal operating systems like Tideworks Mainsail are designed to optimize and scale operations to fit terminal operators’ ever-changing business needs. This vital solution empowers port managers and terminal operators not only to reduce bottlenecks but also to implement new strategies and processes to enhance operations.
While these technologies will often provide an array of features designed to improve efficiency, some of the stand-out elements include:
- Powerful data analytics – TOS can generate better, more granular data for analytics, which can enhance operational decision-making. High-quality systems can integrate with systems beyond the TOS, creating more visibility and actionable datasets, resulting in economies of scale that reduce direct costs for customers.
- Centralization – A proprietary billing engine separate from a TOS can help centralize the management of billing contracts of rates, tariffs, and invoicing, expanding the terminal’s billing capabilities.
- Flexibility – A TOS like Mainsail is flexible with requests, accommodating real-time changes and industry factors that impact operations. This dynamism makes it possible to continuously improve processes while strategizing future enhancements in anticipation of changing needs.
- Terminal automation – One of the keys to optimization involves installing automation wherever it makes operational sense. A high-quality TOS can simplify terminal automation, reducing integration complexity while improving support for different operating models.
It’s important to note that each terminal is different and faces its own challenges and circumstances. Ultimately, the best software will allow terminal operators to adjust parameters, settings, and processes to better align with their unique operational environment.
How TOS Can Reduce Port Congestion
Port congestion can be a significant issue that causes ripple effects throughout the entire commerce and trade networks. Common issues include:
- Delays in global trade – Ports are essential hubs in the global supply chain; when they slow down, it causes further delays in the entire supply chain.
- Increased cost – Slow movement of goods leads to issues like longer vessel and semi-truck idle times, increased fuel consumption, and overtime labor payments, all of which trickle down to consumers via higher-priced goods.
- Supply chain disruptions – When goods fail to arrive in a timely fashion—especially in industries that operate on a just-in-time model—these disruptions can bring production and fulfillment to a grinding halt.
- Lost business opportunities – If congestion management is a frequent problem at a specific port, shipping companies may opt to reroute their vessels to less-congested and more reliable ports.
So, how can technology help solve the port congestion problem? Here are five key ways Tideworks TOS proactively addresses the common causes of congestion in the ports.
#1 Quickly Identify Issues
For many ports, visibility is the key to smooth operations. Often, they simply lack the ability to identify operational issues in a timely manner. As a result, delays or operational inefficiencies continue unnoticed until they’ve escalated into serious bottlenecks.
By implementing the use of a TOS, you gain a clear look into what’s happening on your terminal. A well-designed TOS allows you to drill into the details so you can take corrective action and enhance productivity and efficiency.
In short, when you can identify issues efficiently, this helps transform port operations from a reactive to a proactive model.
#2 Streamline Planning
A major contributor to port congestion is inefficiency in the various planning processes. Miscommunication, data discrepancies, and delays can lead to underutilized resources and overfilled berths.
To streamline planning, technology introduces automation into the mix. Automated vessel planning, berth assignments, and resource allocation can significantly reduce room for error and improve overall operational efficiency, effectively easing port congestion by enhancing the utilization of terminal assets.
#3 Maximize Yard Space
All too often, operators may not be maximizing available yard space properly. This usually happens because of a combination of factors, including relying on manual planning methods or outdated systems. As well as challenges such as unpredictable vessel arrival times, fluctuating cargo loads, changing demand, and trade deficits.
Improper yard planning can result in port congestion, slower container retrieval times, increased dwell times, increased idle times, and, ultimately, lower throughput.
That said, smart graphical planning tools—which create a digital reflection of the physical environment—can dramatically improve yard management. And when paired with automated container location assignments, these tools can help maximize space utilization and the effectiveness of vessel and gate operations.
#4 Reduce Bottlenecks
Bottlenecks in the ports are often caused by unforeseen complications or existing port operational inefficiencies, which hamper productivity.
A 3D data visualization platform can help alleviate this common problem. By visualizing the data this way, operators can better identify patterns, detect potential bottlenecks, and implement corrective actions before major delays arise.
#5 Reconfigure Processes
Inconsistent processes and overburdened staff can lead to slow turn times, contributing to port congestion.
TOS can address this issue with automation and standardization. By automating routine tasks and maintaining consistency in processes, ports can achieve faster turn times and more efficient operations.
Terminal Operating Systems—The Key to Improving Port Congestion Management
The recent global crisis shed light on the significant shortcomings in various port and terminal operations. Fortunately, technology like terminal operating systems provides a tangible solution to the port congestion problem.
Using real-time data, automation, smart planning tools, 3D visualization, and process reconfiguration, terminal operators can streamline activities, thus arming them with solutions to help reduce port congestion.
But what’s the best TOS on the market?
For that, Tidework Mainsail 10 is the solution. It provides all the features and functionalities that terminal operators need to run their facility efficiently. Some enhancements include optimized resource times, 3rd party integrations, advanced reporting, interactive search tools, customized UX, comprehensive inventory control, and more. Utilize Mainsail 10 and Tideworks suite of terminal operating system solutions to improve your operations – not just today but far into the future. Discover more in our demo today.
