ITS ePrimer Module 6: Freight, Intermodal and CVO

ITS ePrimer Module 6: Freight, Intermodal and CVO

ITS ePrimer Module 6: Freight, Intermodal, and CVO March 2016 ITS Professional Capacity Building Program ITS Joint Program Office U.S. Department of Transportation Authors . I. Michael Wolfe, MA Principal North River Consulting Group North Marshfield, MA, USA Kenneth F. Troup, MS Senior Associate/Manager North River Consulting Group Bolton, MA, USA

U.S. Department of Transportation 2 Learning Objectives 1. Understand the different yet complementary goals of private and public sector applications of ITS freight technologies. 2. Describe private, public, and public/private examples of ITS freight applications. 3. Describe the types of ITS benefits delivered to different freight stakeholders. 4. Show how and why private and public sector ITS applications gravitated to different technologies and communications architectures: applications based on vehicle-centered long range communications vs. infrastructure-oriented vehicle-to-roadside communications. 5. Identify resources that readers can use to increase their understanding of ITS freight applications. U.S. Department of Transportation 3

Introduction Overview of Freight Functions and Issues Freight movement is fundamentally private business Shippers, carriers, and consignees Major focus on efficiency, productivity, customer service Federal agencies focus on safety and security USDOT includes FMCSA, FHWA, MarAd, and the Joint Program Office (JPO) DHS includes CBP and TSA What Private Industry Stakeholders Want from ITS Improve planning for physical distribution of goods. Support purchase, scheduling, and rescheduling of transportation

services. Facilitate comprehensive in-transit visibility for carriers and their customers. Improve the information flow throughout the supply chain. Support supply chain performance evaluation and continuous improvement. U.S. Department of Transportation 4 Background of Freight ITS Private sector led the way Early adopters of satellite-based location determination among irregular route truckload carriers early 1990s Dramatic improvements in operating results and service Did not use language of ITS

Public sector use developed more gradually Early Commercial Vehicle Operations (CVO) apps in early 1990s Credentials administration, safety assurance, electronic screening, and toll collection ITS language adopted in late 1990s U.S. Department of Transportation 5 ITS Technologies for Freight and CVO Communications Architecture Wide area mobile Vehicle-centric, long range Satellite, cellular, Wi-Fi evolution Usually 2 way data and voice High cost per vehicle Private sectors focus Short range fixed location DSRC and infrastructure focus

RFID transponders with unique IDs IDs keyed to remote databases Lower cost per vehicle and higher costs on the land-side Public sectors focus U.S. Department of Transportation 6 Core ITS Freight Technologies Asset tracking Where is my equipment? Enables better fleet management and supply chain visibility On-board status monitoring Vehicle condition sensors Cargo condition sensors Driver behavior sensors

Gateway facilitation Ties in with CVO and CVISN Freight and network status info Requires major database access and management capabilities U.S. Department of Transportation 7 Freight Data Management Information about what is moving is often as important as the freight itself History of freight data quality: it is late, incomplete, and inaccurate Move to source data automation triggered by freight transactions Data standardization pays benefits

Major strides in Internet era To visit the UPS tracking site, click here Public sector use of freight data To visit the FedEx tracking site, click here Tactical, such as CVO enforcement Strategic, such as data for planning Freight data sensitivity Usually proprietary and fiercely protected U.S. Department of Transportation 8

Freight Management Functions Freight management functions relate to Information exchange and ITS technologies used by private companies Raw materials, components, and finished goods Freight Management includes four functions A. Integrated Logistics Management Focuses on all aspects of the supply chain Automation of formerly manual processes and documents Core competencies (in-house) vs. third party logistic (3PL) out-sourcing B. Supply Chain Management Growing global use of Transportation Management Systems Trend toward optimization applications and predictive analytics

U.S. Department of Transportation 9 Freight Management Functions C. Carrier and Fleet Management Management of transportation assets Tractors Trailers Containers Chassis D. Port and Terminal Congestion Management Growth in ocean container traffic increases pressure on U.S. seaports Long queues of idling trucks produce emissions issues U.S. Department of Transportation

10 A. Integrated Logistics Management Scope of Business Logistics Activities Sales forecasting and purchasing Inbound/outbound/intra-company trans Raw material/work in progress inventory control Finished goods inventory/warehousing Order processing Customer service Logistics systems administration Materials management

International land domestic shipping Computerized distribution applications U.S. Department of Transportation 11 B. Supply Chain Management Globalization Imports and Exports Enhanced Transportation Management Systems Increased rail-truck intermodal Increased parcel shipments Tracking and tracing of shipments Electronic shipping documentation

U.S. Department of Transportation 12 C. Carrier Fleet Management On-board truck management Tractor and trailer RFID tags Transponder location devices Driver scheduling and alerts Smartphones and cab communications Hours of service management GPS mobile tracking technology DOT-sponsored tests of asset tracking U.S. Department of Transportation 13

D. Port and Terminal Congestion Management Congestion costs the carriers, shippers, and consignees Port truck congestion spills over onto the highways and surrounding urban areas See FMC Port Congestion Causes Report July 2015 Port land-side turn time studies to understand the problem Yard management systems for greater terminal visibility Congestion alerts Off-peak hours incentive programs (e.g. PierPass) U.S. Department of Transportation 14 Costs of Congestion Federal Reserve: - 0.2% GDP because of LA Port congestion in early 2015 Drewry: $150 million ocean carrier lost from LA

vessel turn around delays in late 2014 Tioga Group: $348 million/year from U.S. drayage delays Time in queues at the gates: $83 million/year Congestion within a container yard: $42 million/year Congestion on highways and streets: $150 million/year U.S. Department of Transportation 15 CVO, CVISN, and Gateway Facilitation ITS CVO embodies the yin and yang of enforcement and facilitation Commercial Vehicle Info. Systems and Networks (CVISN) is the central CVO program Commercial Vehicle Administration Center Represents multiple public and regional agencies that administer CVO activities Communicate with Field Activities

Field Activities communicate with trucks Fleet and Freight Management Centers Parts of private firms Commercial Vehicle Subsystems On-board equipment to support both CVO and carriers business interests Vehicle-roadside CVO links CVISN Architecture is a bit complex U.S. Department of Transportation 16 Core and Expanded CVISN Capabilities Core CVISN requires Safety Info. Exchange Credentials Administration

Electronic Screening Expanded CVISN Open menu Optional extensions Some Expanded CVISN Projects 1. Virtual Weigh Stations Roadside facilities monitored from other locations 2. License Plate Readers Image-processing to identify vehicles 3. Oversize/Overweight Permitting Correct routing to address mobility, safety, and security concerns 4. Driver Information Sharing Focus on high-risk drivers U.S. Department of Transportation

17 Deployment Successes PierPASS PrePass Largest ITS CVO consortium 301 stations, 31 states Safety, weight, credentials Electronics enable bypass Non-profit, marine terminals Ports of LA and Long Beach CA

Congestion, air quality, security Incentives for night operations PrePass Coverage Map link U.S. Department of Transportation 18 Weigh in Motion (WIM) WIM is the "Holy Grail" of weight limit enforcement Enables fully automatic and direct WIM enforcement increases the efficiency and effectiveness of weight limit enforcement Virtual weigh station - roadside enforcement facility with remote monitoring (WIM, camera system, and wireless communications) Several YouTube videos may be interesting: For an animation illustrating the WIM concept in action, click here. For a drivers perspective on and experience of a WIM inspection, click here. For a law enforcement perspective and WIM technology approaches,

click here. U.S. Department of Transportation 19 Homeland and Cargo Security 1. Security process and freight data impacts of terrorist attacks 2. Huge bloom of freight-related technology solutions after the terrorist attacks 3. U.S. Government efforts as a shipper to better track assets and monitor their status Department of Defense (DOD) Department of Energy (DOE) U.S. Department of Transportation 20 Freight Data and Process Impacts of 9/11 Focus on what is in the box?

US CBP institutes 24 Hour Rule and Container Security Initiative (CSI) eManifest data required 24 hours before loading container on ship Container screening pushed offshore to origin ports Focus on intrusion prevention and detection CBP institutes Customs-Trade Partnership Against Terrorism (C-TPAT) Validated supply chain security best practices Upgrade cargo seals and sealing practices If you want to guarantee supply chain security, then dont ship anything! U.S. Department of Transportation 21 Bloom of ITS-like Security Technologies TSA launches Transportation Worker Identity Card (TWIC) Classic ITS biometric identification card

Difficult birth limits enthusiasm among freight sectors Publicly and privately funded security initiatives Many start with visibility enhancements that improve supply chain management and security along with it U.S. Department of Transportation 22 Bloom of ITS-like Security Technologies Trade-lane oriented tests and demonstrations over 40! Operation Safe Commerce TSA sponsored "Smart Box" Container Security Devices CBP sponsored

Purely commercial ventures No lasting commercial successes Great ideas, but ahead of their time Viable only with government mandates U.S. Department of Transportation 23 DOD Freight Transportation The Government is a large-scale shipper of freight DOD, for the armed forces DOE, for nuclear materials

Major interests in safety and security of hazardous shipments Arms, ammunition, and explosives Defense Transportation Tracking System (DTTS) Fissile materials DOE Transportation Tracking and Communications System (TRANSCOM) Intelligent Road/Rail Information Server (IRRIS) DODs ITS-like platform Link U.S. Department of Transportation

24 Freight Facilitation Industry and international standards for data exchange Data sharing among private sector firms to improve freight efficiency Includes Electronic Data Interchange (EDI) and internetbased standards USDOT funded projects to enhance facilitation Electronic Freight Management Cross-Town Improvement Project U.S. Department of Transportation 25 Electronic Data Interchange Process of transferring standard business documents between trading partners Backbones of eCommerce is EDI (Electronic Data Interchange), a standard method of exchanging files that was developed in the 1980s

Bridge between trading partners Value Added Network evolved to File Transfer Protocol via Internet Most common electronic transactions Shipment status Invoice Advanced Ship Notice Payment Advice U.S. Department of Transportation 26 Electronic Freight Management (EFM) DOT-sponsored private sector supply chain demonstration projects Internet-based standard freight data exchange among partners Import air cargo of apparel

demonstrated in Columbus, OH Import ocean container by rail demonstrated in Kansas City 3PL and drayage trucking demonstrations in Chicago and other cities Software bundle available to additional private sector companies U.S. Department of Transportation 27 Electronic Freight Management Connections among Corporate Goals, Supply Chain Capabilities and EFM Technologies U.S. Department of Transportation 28 Current Freight ITS Research Research projects in freight transportation sponsored by Joint ITS Program Office

Dynamic Mobility Applications (DMA) Freight Advanced Traveler Information System (FRATIS) Commercial Vehicle Safety Research U.S. Department of Transportation 29 Dynamic Mobility Applications (DMA) Bundle DMA Freight Problem Statement: Lack of Advanced traveler information has negative effect on Efficient Movement of Freight Transportation Logistics Management Systems Environment of Neighboring Communities Energy Consumption Safety of the Traveling Public

DMA Proposed Freight Solution: Develop Freight Advanced Traveler Information (FRATIS) applications focusing on Freight Real-time Traveler Information with Freight Specific Dynamic Route Guidance Load/Empty Optimization U.S. Department of Transportation 30 FRATIS Applications Freight-Specific Dynamic Travel Planning and Performance Enhances traveler information systems to address specific freight needs. Integrates data on wait times at intermodal facilities (e.g., ports), incident alerts, road closures, work zones, routing restrictions (hazmat, oversize/overweight). Load/Empty Optimization Optimize truck/load movements between freight facilities, balancing early and late arrivals. Individual trucks are assigned time windows for pick-up and drop-off. Utilizes travel information and information on port terminal conditions

to optimize operations. U.S. Department of Transportation 31 FRATIS Demonstration Project Three prototype sites: Dallas/Fort Worth Los Angeles South Florida Deployment test Analysis of daily truck movements for with and without comparison Promising technologies if refined and implemented widely. Quantitative benefits could not be measured because technologies were not used operationally. U.S. Department of Transportation 32

FRATIS Findings and Lessons Learned FRATIS had important proofs of concepts automated daily report of expected daily container arrivals Information about availability of containers at a terminal transmission of estimated arrival time of a container Advances in trucking company dispatch optimization technology Integration of new capabilities into existing systems is essential to a successful test U.S. Department of Transportation 33 Commercial Vehicle Safety Research Federal Motor Carrier Safety Administration (FMCSA) research into smart technologies for truck safety Research Division mission: reduce the number and severity of commercial motor vehicle (CMV)-involved crashes through: Systematic studies, best practices and technologies for driver, vehicle, roadside

U.S. Department of Transportation 34 Commercial Vehicle Safety Research FMCSA Research Division Programs Integrated Vehicle-based Safety Systems (IVBSS) initiative to accelerate the introduction of integrated vehicle-based safety systems Onboard Monitoring to Improve Commercial Motor Vehicle Safety effort Technology suite will provide driver performance feedback on a number of critical safety factors Safety and Security Technology Deployment Tests and encourages deployment of collision warning systems with adaptive cruise control, stability control systems, lane departure warning systems, and vehicle tracking systems U.S. Department of Transportation

35 Benefits of ITS Freight Applications Measured or Predicted Benefits Decreased empty miles Fuel savings Process improvements Reduced terminal queue time Enhanced vehicle safety Reduced emissions DOT-sponsored benefits analyses Private Sector and Public Sector benefits Industry-Government partnerships U.S. Department of Transportation 36 CEFMs Benefits Supply Chain Function CEFM Benefits

Productivity: Shipping Documentation Reduced stakeholder data entry by 50-75% Automated visibility data Improved data accuracy at freight station by 25% Automated messaging Improved warehouse data availability by 10% Better staff planning and forecasting of workload Service Quality Improved # shipments/week processed by Customs broker by Automated status data 18% Reduced time to research priority shipments by 27 minute/day

Data quality and availability: Frequency of data updates Eliminated most re-keying through near real-time data Data accuracy Improved data accuracy by 25% Data timeliness Improvement in data receipt by 6-72 hours U.S. Department of Transportation 37 EFM Case Study Benefit/Cost Ratios Case Study Benefit/Cost Ratio

Kansas City SmartPort DEMDACO 2.49 WorldWide Integrated Supply Chain Solutions 7.33 Interdom Partners-Agmark 0.94 Interdom Partners-Pride 6.62 Express Systems Intermodal 0.96 Fellowes (Simulation)

18.39 Carter Transportation 1.36 ACME (Simulation) 127.15 U.S. Department of Transportation 38 FRATIS Performance Measures & Transformative Targets Performance Measure Reduction Targets (%) Near Mid

Long Number of bobtail trips 10 15 20 Terminal queue time 20 35 50 Travel time 15 17.5

50 Number of freight-involved incidents 30 35 40 Fuel consumption 5 10 15 Level of criteria pollutants 5

10 15 Level of greenhouse gas equivalents 5 10 15 Key: Near-term: next 5 years, Mid-term: 5-10 years out, Long-term: > 10 years U.S. Department of Transportation 39 CVISN Benefits Cumulative Benefits from PrePass Inspection Bypasses 19972012 U.S. Department of Transportation

40 Industry Benefit Observations Web-based solutions are more accessible to small and medium-sized companies Most EFM benefits to date accrued to large companies Benefits grow with familiarity and experience The longer visibility technologies were in place, the greater the realized benefits Major users of ITS technologies report better partner integration and greater supply chain visibility. For example: reduction in transportation costs reduction in safety stocks reduction in processing effort U.S. Department of Transportation 41 Cautionary Words about Benefits Great technology

does not guarantee great benefits Management vision, skill, and engagement is necessary Vision, to see possibilities To mobilize the organization And skill in depth to deploy and implement successfully Effective implementation is necessary, not sufficient Sustained benefits require effective maintenance New technologies often require new methods and culture

For successful ITS freight innovations, pay attention to institutional and deployment issues. U.S. Department of Transportation 42 Future Directions of ITS Freight Research Vehicle-to-vehicle truck research Cloud-based system management Predictive analytics Natural gas engines and infrastructure Onboard technologies Advanced technology concepts Check out these advanced technology innovators Freight Shuttle SeaTruck U.S. Department of Transportation 43 Summary

1. The module has provided background on and descriptions of private sector and public efforts in freight ITS. 2. Both private and public sectors use ITS freight technologies to improve safe and efficient freight movement. 3. EFM and FRATIS are examples of public/private ITS apps. 4. The public/private apps benefit from technology advances and yield: private sector dollar benefits better policy decisions by public sector U.S. Department of Transportation 44 References "The Freight Technology Story: Intelligent Freight Technologies and Their Benefits," FHWA-HOP-05-030, June 2005. Hartman, K., Connected Vehicles: The Load Ahead, Thinking Highways, MarApr 2012. The Johns Hopkins University Applied Physics Laboratory (JHUAPL), "Commercial Vehicle Information Systems and Networks (CVISN) System

Design Description," NSTD-09-0238 v. 4.0, June 2009. Truck Drayage Productivity Guide NCFRP Report 11 Tioga Group et al 2011 US Container Port Congestion and Related International Supply Chain Issues: Causes, Consequences, and Challenges Federal Maritime Commission July 2015 Freight Advanced Traveler Information System Impact Assessment Report FHWA-JPO-16-225 Jan, 2016 Connected Vehicle Pilot Deployment Program Phase 1, Concept of Operations (ConOps), ICF/Wyoming Draft Report FHWA-JPO-16-287 December 15, 2015 U.S. Department of Transportation 45 Questions 1. What have been major contributions of DOT-sponsored research in freight ITS? 2. Do you see symmetries between freight and personal vehicle ITS research? Provide examples to support your answer. Also, see the suggested discussion questions on slides:

6: Long- vs. short-range fleet communications 16: Onboard technologies 21: Customs and Border Protections 24-hour rule 38: Institutional barriers to freight ITS adoption 41: Harvesting Web benefits and company size U.S. Department of Transportation 46

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