Complacency and fear of change are the supply chain professionals’ worst enemies. There are different supply chain solutions that are more efficient — this could be switching from containers to breakbulk or using another container port that is not one of the large-volume movers.
Regardless of whether we face a mild recession or no recession, port capacity will remain a challenge in 2023. And while East Coast ports have fared better than their West Coast counterparts, some large eastern seaboard ports have seen their share of ship delays and supply chain congestion. As container shippers and transportation providers continue to look for alternatives, ports that are fortunate enough to have additional capacity will do better.
Ports, similar to businesses everywhere, could suffer from scarcity of labor. Land for new berths, terminals, and warehousing, especially in cities, will be at a premium. Therefore, even ports that have capital dollars will face obstacles in their capital improvement efforts.
Those ports that have available land, labor, capital, and experienced construction partners are positioned to grow. Those that have large, nearby distribution center (DC) complexes will thrive.
Container shippers that suffered supply chain shocks over the past two years are being forced to look at new options. They may not want to, but based on our experience, shippers that are initially doubtful of change are often the most enthusiastic of new alternatives once they try. Beneficial cargo owners unwilling to seriously consider change risk change being forced upon them.