Call me an optimist, but I think 2017 should be a better year for the maritime industry. That’s easy to say, right? It couldn’t get any worse. But if you squint just a bit, you can see the signs. Freight rates seem to have bottomed out. The reckless newbuild frenzy is abating. Consolidation has begun to absorb excess capacity in everything from vessel space to container leasing.
Even port authorities show the promise of a gradual turn in the right direction. Look at what’s been implemented recently at several US ports:
- Extended gate hours to spread the workload.
- Appointment systems for truck drivers to ease gate crowding.
- Real-time metrics to identify optimal times for conducting container transactions.
This may sound boastful, but we introduced all of those measures in Oakland last year. Others have followed suit. The reason? These changes get to the heart of the challenge facing ports — improving performance.
We’ve got to be better at moving cargo. Ships are bigger. They’re discharging larger volumes. More than ever before, landside operations must be efficient to keep up. If we lag, shipping’s recovery will take even longer.
There’s still pain ahead for the industry. Further contraction is likely — make that necessary. It means more change for carrier alliances, more uncertainty for ports serving them. The good news: If we continue to get better at our jobs, we’ll be nimble enough to react — better yet, we’ll act in advance.
There’s an old US West Coast lament: We must shape up or competing ports will eat our lunch. But here’s the new reality: We must improve to help save our industry.
Financially strapped carriers need efficiency to cut costs. Shippers need it for supply chain integrity. Ports must help by transforming the way they operate. After all, pun intended, we’re in the same boat.