Our industry is at a seminal moment in the history of international trade. The force at play is familiar: economies of scale. In the 1950s, it surfaced as containerization. Today, it is a new generation of ships bigger than anyone thought possible when containers became the norm.
Just as we are an industry of links in a chain, our challenges are interconnected. Today’s intense pressure to achieve new economies of scale ripples throughout the system. We see it in new shipping alliances, new infrastructure needs, shifts in chassis pool management across the U.S., truck driver attrition, and new patterns of cargo activity with surges that require each link to rethink how it deploys assets and human capital.
International trade and global logistics have never been more dynamic. Our challenge is to recalibrate for these new economies of scale so our industry continues to thrive around the globe.
In practical terms, achieving economies of scale has always meant doing business cheaper, faster and more efficiently while remaining profitable enough to survive. Again, it’s not a new challenge — just one surfacing at the moment on a spectacular scale. In this era, technology is a more powerful force than ever before. And it also will drive solutions.
The key to overcoming these challenges in 2015 is stakeholder collaboration. This most fundamental of strategies has always moved our industry forward. I’m confident it will do so again because what ultimately powers our progress is human capital.
Ports, as the juncture of international trade, must facilitate solutions. The Port of Los Angeles has a long and proud history of doing just that and continues to play a leadership role in bringing all the parties together to transform our shared challenges into shared success.
Gene Seroka, Executive Director, Port of Los Angeles