Supply chain woes dominated the news cycle in 2021, captured vividly through photos of cargo ships dotting the coast of Southern California. The effects of the COVID-19 pandemic on America’s logistics infrastructure have been well documented and remain ongoing, but the challenges have simply shed light on underlying systemic challenges in the import supply chain that existed long before COVID-19.
With retailers stockpiling inventory and the acceleration of e-commerce, the bullwhip effect has been profound: miles-long traffic jams at major ports, containers piled up in terminal yards, dwell times at an all-time high, warehouses overflowing with freight, and soaring industrial real estate prices. With the global supply chain at such an imbalance, 2022 is likely to see more of the same.
At its core, the issue is an ecosystem of commercially fragmented parties operating on disparate technologies that do not share data. These silos of information prove challenging when trying to locate a container, secure a chassis, obtain “last free day” information, and schedule suitable appointments for the pickup or return of containers.
To improve the flow of trade, industry stakeholders must connect the critical links of the supply chain through digitization to increase the efficiency of drayage operations supporting port terminals. By freely sharing data, we can reduce wait times at terminals, increase dual transactions, improve traffic flow, and better utilize chassis in the Los Angeles–Long Beach port complex.
Ports process roughly 90 percent of world trade, so it’s no surprise that their flaws have found their way into the news cycle. This attention is new, but the issues at the ports certainly are not. Hopefully, the recent exposure and increased awareness will lead to some real progress.
If terminals and drayage operators can begin to optimize operations at the ports, America’s entire supply chain stands to benefit.