All of us in the shipping industry and international trade know we can always count on one thing — change. To remain competitive and evolve to accommodate that change is especially crucial for US ports in the coming year.
During 2017, ports will be focusing on retaining and growing market share as alliances realign in the wake of the August 2016 collapse of Hanjin Shipping, the world’s seventh-largest carrier. An already competitive port industry is likely to see even greater competition.
Three new, directly competitive carrier alliances (Ocean Alliance, THE Alliance, and 2M Alliance) will launch their new trans-Pacific services in the spring with a combined 88 percent market share.
Continuing to develop and implement successful supply chain optimization programs — introduced in the wake of massive congestion in late 2014 and early 2015 — and ongoing infrastructure improvements to accommodate bigger and bigger ships entering the trans-Pacific fleet, will provide a competitive advantage. Ports and terminal operators will also continue to cooperate to resolve the problem of “orphan” Hanjin containers abandoned following the bankruptcy.
Led by the example of California ports and tough state legislation, ports worldwide will continue to join us in the commitment to reduce environmental effects from port operations and become better neighbors.
It’s too early to determine what impact the Trump presidency will have on ports and international trade. I know the industry will stay engaged on policies of interest to the port industry. We will monitor as positions and policies are clarified on international trade and various trade agreements.
Finally, it will be important to work closely with the new administration to support infrastructure investment, advance US exports, and further secure our nation’s seaports.