Despite trucking and intermodal being strained by demographics, regulation, and changing work/life balance issues, I believe the biggest challenge facing the US surface transportation network in 2022 and beyond occurs before that network even has a chance to work.
Just three years ago, we could tell a customer exactly when they could expect their cargo. Today, they need cushions in many nodes in the chain. We need to find our way back to consistency and reliability.
The lines and ports (ocean and air) and intermodal operations need to honor consistent schedules and capacity delivering on expectations, with adequate capacity for returns to keep the supply chain moving.
Swings in rates and volumes over the last three years have the shipping lines very conscious of supply and demand. They have proven ready to lessen supply quickly, while adding back is a bit less prompt. These unplanned changes make arrivals into the US inconsistent and unreliable, forcing shippers to pad the schedule, extend their calendar, and buy goods early to get it “on time.” This added time clouds planning and leads to unbalanced inventories, resulting in overstock and understock conditions.
The recent West Coast port congestion, where freight could float off the coast for weeks and then be lost at ports afterward, has spread everywhere. Inadequate capacity has highlighted the need for better process and staffing. Even today, with volume relatively low, delays are common; it seems to have become the new normal.
Getting back to reliable, consistent end-to-end supply chain operations needs to be our priority. The ancient Romans built cities of concrete and stone, but when Rome fell, the West took another thousand years to figure out how to do it again. We can’t forget how: the nation needs us to get this right again. Now.