While forecasts regarding the U.S. economy vary, one significant trend we expect to continue during 2016 is the growing share of U.S. East Coast and Gulf gateways at the expense of the U.S. West Coast. According to some projections, the U.S. East Coast stands to gain up to 10 percent of cargo share in the long term. This will be driven by the Panama Canal expansion. Potential U.S. West Coast labor disputes are another driving factor. The shift, however, still faces some obstacles, such as U.S. East Coast port readiness for larger NPX vessels, and land transportation infrastructure challenges.
In order to cater to the U.S. market’s changing needs in an effective manner, carriers need to be able to offer a strong presence in both the Asia-U.S. East Coast and Caribbean trades, as well as in the Pacific Northwest, with wide port coverage in both Asia and the U.S.
Furthermore, carriers with the ability to act swiftly and independently in response to market changes will be better positioned to deliver the service levels customers expect.
In a more general vain, I believe carriers are increasingly looked upon by beneficial cargo owners as a commodity and judged mainly by their ability to mold themselves to the needs of customers, in terms of transit time, schedule reliability, EDI capabilities and other factors related to customer interface. I’m convinced that a dynamic approach, fast response to market needs, finding creative solutions and providing multiple service offers to customers will be the key to carriers’ success in a continually challenging market environment.
George Goldman, President, Zim USA