POLA, Cargomatic partnership is formally introduced

An ongoing partnership between the Port of Los Angeles (POLA) and Cargomatic, a Venice, Calif.-based company with proprietary technology that connects shippers and carriers through an app-based interface, appears to be paying dividends, POLA officials recently said.

Los Angeles Mayor Eric Garcetti said last week that POLA and Cargomatic and POLA are testing Cargomatic’s mobile app to accelerate the flow of containerized cargo at the port, which POLA said is key for increasing supply chain efficiency.

And POLA Executive Director Gene Seroka said that “Great minds are working on smart solutions for moving cargo faster and more efficiently across the supply chain, adding that the port has always supported innovation and is proud to be the gateway where new strategies are emerging.”

In early March, Cargomatic announced it had formally rolled out its Cargomatic Free Flow program, which is geared towards reducing congestion at POLA, the Port of Long Beach, and other ports, too.

Cargomatic said that the Free Flow program kicked off in January at POLA’s West Basin Container Terminal (WBCT), with several retail carriers and shippers using the technology, which has reduced turn times at WCBT by up to 100 percent, with turn times down from 85 minutes to about 42 minutes.

As for how the Cargomatic Free Flow program works, company officials said that it allows containers from multiple shippers to be grouped together in designed stacks at the ports, and at that point the operating system alerts pre-vetted carriers when a container from that stack is available and tells them exactly where to look for it and where the container needs to go.

This in turn enables terminal operators to not have to search for one specific individual container, whereas they can pull a container off of the designated stack which Cargomatic said enables containers to be moved with more frequency and at a faster rate. And once a shipment is delivered, the Cargomatic app provides a truck driver with a list of empty containers to pick from in their local vicinity on the return trip to the port.

The biggest benefit of Free Flow for shippers is that it enables them to get their freight quicker, assuming they are using Free Flow on a daily basis, according to Cargomatic COO Brett Parker in a recent interview.

And on the carrier side, the main advantage for them with Free Flow is that it provides them with more turns, which translates into being able to do more with less drivers and also be more efficient with trucks.

“This prevents the need for more trucks to be added,” said Parker. “If you call a carrier right now, good luck getting the capacity. Also, drivers are leaving the industry, and the ones driving don’t want to go to the port because they cannot get the revenue on the trucks, which is not a good thing as we want people in the industry and not leaving it. That is why prices are going up, too. If a carrier can only make one turn, it now wants $900 for it, whereas before it was $450. We have got to get the turns back to a normal level so that the drivers can make their money.”

POLA officials said that any party, whether it be a beneficial cargo owner, motor carrier or independent owner operator can enter the online market by registering with Cargomatic, and drivers are vetted to ensure they meet all required licensing, insurance, and certifications, including compliance with the Uniform Intermodal Exchange and Facilities Access Agreement. Shippers of all sizes are eligible to participate in the program.