Case2: US West Coast Port Congestion
Infrastructure ( Hardware Environment )
Drastic increase in shipments and containers is compounded by the lack of port workers and strike as well as insufficient land transportation capacity. Ships often have to wait for their turn at the ports of LAX and LGB ( Long Beach )
Introduction of PierPASS, Offpeak Program (Software Environment)
Los Angles and Long Beach introduced PierPass and OffPeak program
→Encourage greater use of marine terminals during offpeak, night & weekend, hours →Adopt “Traffic Mitigation Fee (TMF) on laden containers that are dropped off or picked up by truck during “peak hours”. ($50.00 per TEU or $100 per FEU)
Customer Demand
On-Time Delivery vs. Overall Cost Justification
| Dimerco | Model | Efficiency Analysis |
| Material Flow | Utilize PierPASS Offpeak Program and arrange pickup or drop off during Offpeak hours |
|
| Financial Flow | VAT refund | VAT refund applies to shipments entering bonded logistics parks since they are considered exports |
