Competition is good for everything that it brings: efficiency, innovation, customer choice. But there’s sometimes an unwelcome byproduct of competition: indigestion. Ports and terminals have a touch of it right now. That’s because there’s tense competition underway for cargo. There are too many gateways chasing containerized trade volume that’s growing … but not growing fast enough to absorb capacity. It could make a person queasy.
The antidote for this heartburn? A healthy dose of upgrading. We’ve got to step up our game if we’re going to compete for cargo. That means improving efficiency and developing new capabilities. Fail to do that, and we risk losing market share.
So what is it that ocean carriers and cargo owners want from port authorities and terminal operators? Here’s what we’ve learned working in close proximity with our Port Efficiency Task force over the past two years:
- Speed and reliability: Customers want extended hours, appointment systems, and turn-time metrics to hasten cargo flow.
- Big ship readiness: More than just deep water, customers demand fluid landside operations and infrastructure — starting with taller cranes — to handle mega-ships.
- Holistic supply chain support: Customer requirements don’t stop at water’s edge; we’ve got to provide the range of logistics services from onsite transloading to cold chain capabilities.
Because we’re competitive, we’ve spent the past two years working on these improvements. Cranes are going higher. Terminal gates are open at night. This year, we’ll open a 283,000-square-foot refrigerated distribution center. In 2019, our 440,000-square-foot transload center opens.
The Northern California market is reasonably well-insulated. It can’t be easily served by other US ports. That helps us protect market share. But it’s no reason to relax. We’ve got to keep improving … got to compete if we intend to grow our business. That’s the message for all port operators in these stomach-churning times.