In 2015, the logistics industry saw equal amounts of challenges and opportunities. Shippers searched for remedies to port congestion that slowed the supply chain and had tangible financial impacts. The industry responded by providing alternative cargo routings, ranging from air freight for time-sensitive cargo to non-traditional port routings. The rise of new ports does not mean an end to existing ones, but represents viable options that augment the flow of cargo.
On the East Coast, ports such as Savannah handled record volumes. Further, these volumes show real staying power, beyond interim solutions to avoid port congestion. The infrastructure to support additional cargo proved reliable, and more improvements are in place to support cargo growth. Outside of the port facilities, warehouses are available to provide transloading and fulfillment services. Timely and cost-effective short-haul intermodal routings to inland hubs demonstrate a real ability to mitigate port congestion.
Recent mergers and acquisitions signaled lasting changes across all phases of the value chain. Unfortunately, rapid corporate expansion does not necessarily equate to greater service offerings to the customer. We believe organizations that take a more measured approach, ensuring the right match of both services and corporate values, will ultimately provide the best-in-class services to their customers.
Further, we see these new services centered around visibility tools. Twenty-first century supply chains must be reliable under normal conditions and resilient in the face of changing customer demands. Visibility tools provide added measures of certainty customers need to actively manage their cargo. Utilizing the use of control tower solutions delivers this visibility seamlessly across multiple modes of transportation.
Regardless of various economic conditions, mergers or port congestion, we feel the smart providers are well positioned to support their valued customers.
Kunihiko Miyoshi, President and CEO, Yusen Logistics (Americas)