The largest challenge facing the container shipping industry in 2022 is ensuring sufficient capacity to handle US import cargo volumes, which are projected to remain elevated at least through the spring. The need for expansion exists both on and off the terminals.
With warehouse operators unable to process cargo quickly enough to keep up with arriving containers, import dwell times have doubled at seaports. This has had the domino effect of slowing vessel service. For port authorities, this dynamic requires building additional container capacity by reconfiguring existing terminal space, expanding onto adjacent property, or adding whole new terminals. At ports where intermodal rail is not congested, transfering cargo from truck to train can also help to clear space for incoming containers.
Ports that can expedite expansion projects with available land and capital will benefit the entire supply chain by easing the transition between marine and surface transportation.
Beyond terminal gates, private investment is necessary to provide the capacity required to ensure the free flow of goods from ports to distribution centers and on to the ultimate consumer. A partial solution would be to develop pop-up locations at under-utilized rail facilities and empty inland yards that have the capacity to store cargo.
In addition, private investors need to build greater capacity by expanding existing warehousing and distribution structures and adding new ones. Additional square footage is needed to handle the current influx, but also to accommodate future growth once the current spike subsides.
The workforce is another important aspect of container--handling capacity. As distribution centers grow to take on increased business, operators will need to add employees. Finding good people is no small task, so workforce development will be a key factor in the logistics sector’s success in 2022.