Transportation, Distribution and Logistics: Entry
Level Jobs in King County
September 4, 2001
Port Jobs
C/o Port of Seattle
Pier 69, Box 1209
Seattle, WA 98111
Transportation, Distribution and Logistics: Entry Level Jobs in King County
September 4, 2001
Introduction
Transportation, Distribution and Logistics is a single term used to refer collectively to the loose network of businesses and industries that serve to physically move people and goods locally, nationally and internationally. This report asks two major questions about this sector of the economy: What makes up the TDL sector in King County, and where are promising entry-level jobs in the sector there?
This research report, funded by the Northwest Area Foundation, represents the first step toward development of new programs in the third of three port-related sectors of the King County economy. The first two sectors tackled by Port Jobs were Construction employment and Airport-related employment.
In this initial research study, Port JOBS found the following:
· King County has seen significant growth in the movement of goods and people over the past ten years, which has created many job opportunities;
· Over the next five years labor demand in this sector is expected to be highest in wholesale trade in durable goods, air transportation, and motor freight transportation and warehousing;
· Jobs with the greatest labor demand include drivers, clerks and manual workers; and
· The downturn in the economy in the first half of 2001 is already starting to have a negative impact on employment in the TDL sector, although other trends in the sector may affect employment in different ways.
What is Transportation, Distribution and Logistics?
Transportation, Distribution and Logistics (or TDL) is a sector of the economy that covers a broad range of jobs, employers and industries. The Department of Transportation’s Career Cluster: Transportation, Distribution and Logistics Initiative defines it as comprising “the planning, management, and movement of people, materials, and products by road, air, rail, and water…. It includes related professional and technical support services such as transportation infrastructure planning and management, logistics services, mobile equipment and facility maintenance.”[1] In other words, TDL includes every mode of transportation from the largest ocean going freighters to the smallest commuter airlines to taxis and limousines. It includes all the business that supply and support the movement of people and goods via those modes, from warehouses to fuel providers to insurance companies.
Many different statistics demonstrate the size of TDL in the King County region. None of these measures provides a full picture of the entire TDL sector, as each draws from a different set of sub-sectors. Combined, however, they give a sense of its size and impact.
- In Washington State, transportation jobs grew by 25% between 1987 and 1995, with air transportation and trucking/warehousing showing modest gains, and water and rail transportation showing slight losses.[2]
- In King County, jobs in the Transportation and Public Utilities sector grew 98% from 1970 to a total of 66,200 in 1995, with a relatively high average annual wage of $37,962.
- In April 2000, the three-county Seattle-Bellevue-Everett primary metropolitan statistical area (PMSA) had 86,500 jobs in Transportation, Communications and Utilities.[3]
- At seven percent of all jobs, Transportation and Public Utilities makes up a larger share of the jobs in King County compared to the rest of the state (4%). Of those 66,200 jobs, 23% were in trucking and warehousing in 1995, and another 21% were in air transportation.[4]
No matter how TDL jobs are measured, a large share of them in King County can be attributed to the Port of Seattle, both its air and seaports. A recent study commissioned by the Port concluded that in 2000, 16,304 jobs in King County were directly generated by seaport activity and 71,335 jobs directly by Sea-Tac Airport activity. In addition, firms using the seaport or airport to ship or receive cargo and firms whose employees regularly use the sea- or airport generated 40,794 additional jobs.[5]
The seaport can be divided into five major sectors of activity:
· Surface transportation sector
· Maritime service sector
· Port of Seattle
· Dependent shippers/consignees
· Banking/insurance/law sector.
The airport also has five major sectors of activity:
· Airline/airport service sector
· Freight transportation sector
· Passenger ground transportation sector
· Contract construction/consulting services sector
· Visitors industry sector.
In addition, King County International Airport (commonly referred to by its former name, Boeing Field) also houses facilities for several major air cargo companies, including UPS and BAX Global, as well as recreational flyers, charter services, flight schools and emergency services.
TDL employers in the region range from public
transit agencies to warehouses to trucking companies to terminal management
companies. They include government
regulatory agencies, construction companies, cruise ships, and local
transportation providers such as taxis, shuttles and limousines. Shipbuilding companies, independent truck
owner-operators, auto dealers and airlines are part of this network. Unions within the TDL sector include the
Teamsters, International Longshore Workers Union, several flight attendants’
unions, Airline Pilots Association and more than twenty unions within the
building and construction trades. The 2000-01
Pacific Northwest Edition of the Ports Services Directory lists 61
different types of businesses serving ports alone, from ferries and passenger
ferries to attorneys to tank and bilge cleaners.[6]
Clearly, a wide variety of companies and government agencies fall into the TDL sector. These companies may be large or small. They are scattered throughout the Puget Sound region, although many concentrate along freight mobility corridors that link waterfront ports to warehouses in Kent, and along rail and major highway lines. Each of these companies has entry level, front line management and professional positions.
Where is job growth occurring within the TDL sector?
Where are the entry-level jobs in TDL that pay well enough to support a family but do not require extensive education and training to qualify? Which of these see the highest number of new and replacement openings each year?
To answer this question, Port Jobs and the Northwest Policy Center began by looking at job projections figures for the two-digit Standard Industrial Codes (SIC) codes for transportation or warehouse-related industries that were likely to have significant activity in King County:
· Local and Suburban Transit and Interurban Highway Passenger Transportation (41)
· Motor Freight Transportation and Warehousing (42)
· Water Transportation (44)
· Transportation by Air (45)
· Transportation Services (47)
· Wholesale Trade – Durable Goods (50)
· Wholesale Trade – Nondurable Goods (51).
Within each classification, those jobs listed by Occupational Employment Statistics title that paid $10 per hour or more, require at most some post-high school education but less than a four year degree, and are expected to generate at least 30 job openings in King County per year from 1996-2006, including both growth and replacement needs. Between these categories, a total of nearly 11,000 growth-related jobs are expected to be created in King County. From the list generated, five different classifications of jobs could be identified:
· Clerk
· Driving
· Flight attendants
· Manual
· Mechanic
· Sales.
After taking out three sales job groupings that are not transportation-specific, the figures show a total of 8,842 TDL jobs expected to be created in King County between 1996 and 2006. Tables 1 and 2 show how those break out by SIC code and by the categories identified above.
Table 1: King County growth in TDL jobs, by SIC code
|
SIC Code |
Number of jobs created by growth |
Share of total |
|
Wholesale Trade – Durable Goods, |
2,523 |
29% |
|
Transportation by Air |
2,483 |
28% |
|
Motor Freight Transportation and Warehousing |
1,449 |
16% |
|
Wholesale Trade-Nondurable Goods |
1,417 |
16% |
|
Transportation Services |
811 |
9% |
|
Local and Suburban Transit and Interurban Highway Passenger Transportation |
88 |
1% |
|
Water Transportation |
71 |
1% |
Total |
8,842 |
|
Table 2: King County growth in TDL jobs, by category
|
Category |
Number of jobs created by growth |
Share of total[7] |
|
Driver |
2,531 |
29% |
|
Clerks |
1,639 |
19% |
|
Manual |
1,498 |
17% |
|
Flight attendants |
1,403 |
16% |
|
Mechanic |
819 |
9% |
|
Sales |
812 |
9% |
|
Other |
140 |
2% |
Total |
8,842 |
|
What types of entry-level jobs are available?
The tables above show seven categories of jobs where TDL growth can be expected in King County. Within most of these categories (except flight attendants) are several different specific job titles and duties. Another category of jobs that is expected to see significant transportation-related job growth in King County but does not appear in these tables is construction, which is discussed last.
Driver The vast majority of driver jobs expected in King County (1,972) are either light or heavy truck drivers. In fact, these two categories are expected to generate the third and fourth largest number of jobs among all the OES categories. These include long-haul truckers, most of whom are independent owner-operators, large and small trucks used to distribute goods locally. The latter generally work for manufacturing or distribution companies such as Frito-Lay or Magnolia Hi-Fi. They are paid hourly, and are commonly represented by the Teamster’s union. Most of the large trucks that move intermodal containers through Seattle’s seaport are generally individuals who have bought a rig and are self-employed, referred to as “independent owner-operators.” They are paid by the load rather than the hour, and often have to line up hours ahead of a ship’s arrival in order to assure themselves of getting a load, or of getting a load that they can deliver to the railyard gate in time to return for additional container deliveries the same day. Other local drivers include employees of small package delivery companies, like UPS, Federal Express or locally headquartered Airborne Express. The median wage in King County for light truck drivers is $10.57 per hour, and for heavy or tractor-trailer truck drivers is $15.61 per hour.
Another type of driver job is bus and paratransit drivers. These include drivers of large public transit buses and trolleys, school bus drivers and drivers of smaller multi-passenger paratransit vehicles that serve the disabled or the elderly. The median wage for all bus drivers in King County is $14.72 per hour, and for school bus drivers is $12.50 per hour. Entry-level wage for part-time drivers at King County Metro is $14.51 per hour ($8 per hour during training). Top of the driver pay range there is $20.73 per hour, and there are opportunities to advance into management. In fact, most managers and administrators at Metro started their career in the agency as bus drivers. Bus transportation for public schools in King County is generally provided by private companies on contract, including Laidlaw and Ryder. Starting wages range from $10.50 to $14.50 per hour.
Dispatchers are included in this category because this is a next step up the career ladder for many drivers. A few paratransit agencies allow people who are not old enough to drive to be trained and hired as dispatchers. However, this is not usual practice in the industry – most dispatchers at truck and public transit companies are former drivers. Median hourly wage for dispatchers is $13.99.
Most companies require applicants for driver positions to be at least 18 years of age. A special driver’s license will probably be required, depending on the type of vehicle being driven on the job. Large tractor-trailer trucks and buses require a commercial driver’s license. In most cases, it is necessary to have the CDL before applying for a driving job. A few employers, including King County Metro, include CDL training as part of their general training for everyone who is hired as a driver. CDL training also can be obtained at South Seattle Community College or at for-profit driving schools in the area, and generally costs in the range of $2,000-3,000.
Clerks This category includes a wide range of jobs that involve arranging for freight to be delivered from its point of origin to its destination on time, with all the required legal documents attached. There are several different job titles for people who do essentially the same tasks: freight forwarder, expeditor, cargo handlers, import clerk, transportation clerk, document manager, etc. Some individuals working in this field obtain specialized training to become a customs broker. These jobs take place in an office on computers and over the phone. The person who arranges the transportation and paperwork generally never sees the freight, and may or may not work near a transportation line or transshipment point. The median wage for Shipping, receiving and traffic clerks is $11.76 per hour. Billing, cost and rate clerks earn a median wage of $11.85 per hour. First line clerical and administrative supervisors earn a median hourly wage of $15.43.
There are many companies located in the Puget Sound region created solely to provide freight forwarding and brokering services to clients who need to move their products through the region. These positions may also be found within smaller freight transportation companies. The 2000-01 Pacific Northwest Edition of the Ports Services Directory lists 68 different freight forwarders and brokers with offices in central Puget Sound. One of the world’s largest expediting companies, Expeditors International, is headquartered in Seattle, although the bulk of its employees are located outside of the region. Government agencies, such as the U.S. Customs Service or the Port of Seattle, hire significant numbers of people in clerk positions to manage legal paperwork.
Many people who work as freight forwarders, expeditors and transportation clerks started out elsewhere in the freight transportation industry, often as warehouse workers, and moved into clerk positions later. They most commonly learned their roles and responsibilities on the job. Highline Community College offers training for individuals interested in these positions, and most students in their freight forwarding training courses are concurrently freight transportation workers. Highline also offers training for freight forwarders who want to become a customs broker, a specialized type of clerk.
Manual These are the jobs where people physically handle packages in
a warehouse, load luggage into the belly of an airplane and lash down freight
on the dock. These are the un-glamorous
jobs where physically strong people who don’t mind getting dirty are likely to
succeed. People who do not like to be
tied down to a desk or in an office should look into these kinds of jobs. OES data show the median hourly wage of a
broad category of Other helpers, laborers and hand material handlers,
at $10.49. Many of these jobs are
located in warehouses in Kent, on the waterfront and on the ramp at Sea-Tac or
King County airports. At airports,
Federal Aviation Administration regulations may require someone working on the
ramp to get special security clearance.
Warehouses and the seaport do not have the same requirements.
Perhaps the most important union on the Seattle waterfront is the International Longshore Workers Union (ILWU), a group that does significant manual labor on the docks. In Seattle there are two ILWU locals, Local 9 and Local 19. To become a registered longshore worker, an individual must first work as a casual laborer for a specified number of hour, usually over several years. The only minimum requirements are the ability to do hard physical labor, to read a bill of lading and to follow orders. Progression to higher earnings and to the top ranks of longshore workers is determined by seniority and skills that are generally learned on the job. At the highest level, a crane operator with thirty years of experience can earn more than $110,000 annually.
Flight attendants As the number of people flying in and out of Washington state increases, the number of flight attendants is projected to grow by leaps and bounds into the mid-2000s, far outstripping every other air transportation type of job. This is one of the most popular air transportation jobs among the general public, so there is much competition for available positions. The FAA describes work conditions for flight attendants as follows:
“Flight attendants spend most of their time in the passenger cabin of an airliner. They fly from 75 to 85 hours a month. In addition to flight time, they have about 50 hours a month duty time between flights, and they must be present for check in to crew scheduling and briefing at least an hour before flight time. At the end of the flight, the flight attendant may have reports to complete….
The hours in a flight attendant's working day are irregular and are determined by the flight assignment. If the flight leaves at 5 A.M., the flight attendant is expected to report to the captain by 4 A.M. The maximum number of flying hours per day is also set by union agreement, and on-duty time is usually limited to 12 hours per day, with a daily maximum of 14 hours….
Inflight duties keep flight attendants on their feet most of the time. To accomplish all their tasks during the few hours in the air, Flight Attendants frequently must work at top speed. At times, they must serve meals and pour beverages under rough and uncomfortable flying conditions. (No hot beverages are served in turbulent air.) They must be pleasant to all kinds of people, some of whom can be annoying and demanding.”[8]
In King County, the median hourly wage for a flight attendants is $18.61. The most popular benefit of being a flight attendant is free flights. Alaska Airlines has its hub in Seattle, and other major airlines that serve Sea-Tac include Northwest and United. Alaska and Horizon are the only airlines that maintain human resources departments in Seattle. All other airlines are based elsewhere and send HR staff to Seattle periodically to conduct job interviews, only as new workers are needed.
Mechanic This category includes many different people who build and repair machines with their hands, including bus and truck mechanics, aircraft mechanics, office machines and cash register servicers, and other mechanics, installers and repairers. This is another area where people who want to work with their hands and don’t mind getting dirty will do well. Median hourly wages may be higher than many other transportation jobs, with bus and truck mechanics earning $18.20, airline mechanics earning $19.51, and office machine and cash register servicers earning $12.02. Mechanics may work for auto sales companies, independently owned car repair shops, public transit or paratransit agencies, or for themselves. Many mechanic jobs, such as those in airlines or public transit agencies, are represented by unions.
Sales Most of the TDL entry-level opportunities in sales are travel agents, who earn a median hourly wage of $10.30 per hour. Reservation and transportation ticket agents, who work directly for the airlines and earn about the same amount, however, are expected to see a sharp decline in the foreseeable future. Travel agents may work for a large company such as Doug Foxx or AAA, for a small, independent company, or may work for themselves. Travel agents often need to know specialized computer programs such as SABRE. Several community colleges in King County offer training to individuals interested in becoming travel agents. These jobs may become less attractive as airlines have been recently cutting the commission they give to travel agents, to make up for losses.
Construction In addition to these categories, construction in and around port and warehouse facilities, road building and repair, and shipbuilding at local shipyards makes the building and construction trades another area where significant job growth is expected. Transportation-related construction work often takes place on public sector projects funded by government agencies such as the port, state or county. The work is contracted out to general construction contractors, who plan the project and subcontract the work out to smaller, specialized construction companies. Significant current transportation-related construction projects include the third runway at Sea-Tac Airport, Sound Transit projects, highway construction and repair, and renovation of Terminal 91. Todd’s Shipyard and Foss Shipyard hire many people in the building and construction trades to build and repair vessels. To get a union job in construction, one must apply to and enter an apprenticeship program in the trade. Entry level wages for apprenticeships in the building and construction trades ranges from about $10.50 an hour to $16.50 an hour. Full benefits kick in after three to six months, and raises are scheduled every six months. After two to five years of training, a person can earn between $20 and $30 per hour, depending on the trade, specialization and work location. Non-union construction jobs pay less than their union counterparts, but do not have as stringent requirements for entry.
Future trends in TDL
King County and the Puget Sound region have seen tremendous growth in the TDL sector, as more people and goods move through the region. Between 1993 and 1998, the Seattle-Bellevue-Everett PMSA experienced the second highest growth in the nation in the dollar value of its exports, and in 1998 exported the highest dollar value of goods of any PMSA. Of the $34 billion in exports, $27.6 billion, or 81% of those exports, fall into the category of “transportation equipment,” with $17 billion of total exports (50%) being Boeing aircraft.[9] At the same time, 28.4 million people traveled through Sea-Tac International Airport in 2000, breaking the airport’s record for the 18th year in a row.[10]
However, after several years of growth, anecdotal evidence indicates a decline in the TDL sector in the first half of 2001. This is largely due to slowing economies in the U.S. and some of its major trading partners, including Japan, South Korea and the European Union, many of whom are also top trading partners with the Port of Seattle. The downturn in trade is also tied to the bursting of the high-tech bubble, as it has led to declines in both the import and export of electronic goods between Washington and several Asian countries. The Port of Seattle reported that container traffic was down by eleven percent in the first six months of 2001.[11] Puget Sound air cargo and trucking companies have laid off workers this year.[12] Most airlines across the U.S. are losing money, although Seattle-based Alaska Airlines is still in the black.[13]
There are several other factors that may change the face of employment within the TDL sector in the coming months and years. These include technological changes, consolidation among companies and deregulation of TDL industries, and international trade agreements. In addition, resolution of the current Sound Transit debate will have an impact on TDL jobs locally.
Technological changes have already had an impact on jobs in the TDL sector, and will continue to in the future. Crane operators on the waterfront need higher levels of computer skills in order to operate their rigs. Ocean going freighters and cargo planes are being redesigned and built with more freight capacity than ever before. Many truck drivers now carry laptop computers on board to track where they can pick up their next load. Such technological changes are likely to decrease the number of individual workers needed in certain industries, while raising the bar for the level of skills needed to succeed in those jobs.
Consolidation and deregulation have been watchwords of the TDL industry for the past twenty years. Small truck companies have been swallowed by larger, national “megafirms” since a federal law was passed in 1995 prohibiting states from regulating economic aspects of trucking. Mergers and acquisitions have reduced the number of rail lines from twenty nationwide to only five today, with only two of them serving the entire western U.S. Although the amount of freight transported by rail has been on the rise in recent years, the number of workers on those trains has decreased dramatically, with net job losses expected in Washington state. Perhaps best known to the traveling public are the airlines’ mergers and buyouts in response to ongoing financial losses, with several currently awaiting approval by federal regulators.
International trade agreements are expected to have an impact on TDL jobs in the U.S., although which direction that will take is open to debate. Implementation of agreements under the North American Free Trade Agreement, passage of the African Growth and Opportunity Act, possible passage of the Free Trade Area of the Americas, and entry of China into the World Trade Organization, are all expected to increase the movement of goods worldwide. Proponents of these agreements argue that this increased movement of goods will create more jobs for Americans. Opponents argue that competition from foreign countries will drive wages down in the U.S. and encourage U.S. businesses to move their operations to other countries with cheaper labor and lower environmental and health standards. Already, China is competing with Washington agricultural exporters, selling apples and other fruits to Taiwan and Japan, which are traditional markets for similar goods from this state. If Mexican truckers are allowed to drive freely throughout the U.S. under NAFTA, demand for American truckers may decline.
Finally, here in Puget Sound, Sound Transit’s regional transportation system of light rail, bus service, park and ride lots and HOV lanes was expected to create many jobs in the TDL sector, including those in construction, driving, dispatching, mechanic, and customer service. However, much of that work has been put on hold while regional leaders debate whether or not to continue the project, and if they do so, at what scale. The TDL job outlook for King County and the region may change depending on what decisions are made by the Sound Transit board.
Next steps
Over the past year and a half, Port Jobs has taken steps to assist both the ILWU and Teamsters in developing programs to recruit and train new workers. However, both of these efforts have been sidelined due to political issues within the unions. Nonetheless, we are prepared to work with either organizations when the time is ripe.
As its next steps in program development within the TDL sector, Port Jobs should begin to investigate specific promising areas in more detail, including jobs in warehousing, freight forwarding and driving. This work should focus on finding out how job projections are changing in the latter half of 2001, learning how people qualify for and get these jobs, understanding job ladders within the industry better, and building partnerships with employers and training organizations. It should include a special concentration on finding ways to recruit and train English language learners and youth for TDL jobs.
Transportation, Distribution and Logistics is a disparate field that includes many different types of jobs and industries. There has been a marked increase in the number of people and goods moving through the state and King County since the mid-1990s, driving upward demand for truck drivers, freight forwarders and flight attendants. However, as the economy began to slow in 2001, labor demand appears to be falling off somewhat. Port Jobs will need to keep a close eye on changes in the regional, national and international economies, as changes at all of these levels can have repercussions within the TDL sector in King County.