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How do we measure utilization and productivity?

Tuesday, August 2, 2016

Graphic Version

Utilization is throughput/capacity expressed as a percentage

  • Utilization is strongly affected by the timing of capacity additions versus demand growth
  • Low utilization may signal low productivity, loss of demand, or reserve capacity
  • High utilization may signal high productivity, demand spikes, or capacity constraints

Productivity is typically a ratio of throughput per asset unit

  • TEU or tons per acre
  • Vessel or barge calls per berth
  • Crane moves per hour

Averages summarize key characteristics and “smooth out” differences between terminals and over time

  • Average truck turn time
  • Average tons per vessel or barge call
  • Average cranes per berth