WASHINGTON — A “taxi-style” licensing proposal for container truck drivers who access U.S. ports is being touted by two transportation researchers.

According to the American Shipper, a planner at the US Department of Transportation’s Volpe Center says mandatory licences for container haulage companies could lead to more compensatory rates and a more professional and efficient shuttle transport system.

“An economic strategy of restricting entry to the port drayage business will alleviate the oversupply of drivers and allow those in the field to make a profit and raise industry standards,” Douglass B Lee, Jr. said while speaking at the Transportation Research Board’s annual conference in Washington.

After a licensing system brought some stability back
to the Vancouver Port, U.S. ports want to try it too

As was argued in Canada before a similar licensing scheme was implemented at the Port of Vancouver, drayage drivers are paid low piece rates to move containers to and from local warehouses and rail yards without any adjustment for congestion, fuel spikes, night shifts, or delays at the terminal or receiving dock.

“These independent drivers have typically been unable to seek rate increases or surcharges to cover rising costs such as fuel. By some estimates the cut-throat competition has led ocean carriers, who enjoy antitrust immunity, to collectively set rates that are at least 30 percent below what the actual market would bear in an industry where anybody with an old truck can enter the market,” stated the report.

Truckers in the U.S. have also unsuccessfully engaged in periodic work slowdowns or stoppages to demand higher pay rates, further adding to the potential unreliability of the supply chain.

In November, the controversial truck licensing system enforced by the Vancouver Port Authority was officially enshrined into law by the Conservative government.

The regulation requires the Vancouver and Fraser River port authorities to establish, set conditions, and enforce a licensing system for all truckers entering the ports.

The rule was essentially based on government mediator Vince Ready’s 2005 recommendations to establish standard haulage rates. Ready brought in the rules in 2005 to end a six-week strike by independent container drivers protesting low rates.

Other options being discussed in the U.S. include allowing independent truckers to unionize or creating a commission that would set a minimum hourly pay rate for drivers, says Peter F. Swan, assistant professor of logistics and operations management at Penn State University-Harrisburg.

In an interrelated market, a low truck transport rate affects how other players buy and position their assets, Swan said. Retailers, for example, will locate distribution centers farther away from the port where land is cheap. “One market may be failing and it can have a dramatic effect throughout the entire system,” the report quoted Swan as saying.

— with files from the American Shipper