This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
The 2020 outlook for the global container industry is uncertain and volatile, as trade policies, tariffs, protectionism, and geopolitical pressures persist. Most macroeconomic factors are pointing to slower trade growth in 2020 where uncertainty is becoming a constant dynamic that is challenging our industry. Although unemployment remains low, consumer confidence may be slipping. However, with Thanksgiving shopping just reported, the economy experienced positive momentum as weekend sales hit an all-time record.
Infrastructure will need to keep up with demand pressures on terminals. Carriers are maximizing vessel capacities, creating the need for ever-increasing equipment and infrastructure investments with additional capabilities. An example of our response to these requirements includes our robust infrastructure projects and initiatives at Port Newark Container Terminal, Seagirt Marine Terminal, New Orleans, Tampa, West Basin Container Terminal, ITS Long Beach, and Tacoma.
High productivity and efficiency continue to be instrumental and a requirement for the current and future needs of the industry. Consumers’ demands for next-day and same-day delivery will force terminals to become more transparent supply chain partners. Ports America’s commitment to technology upgrades also involved the deployment of new terminal operating system (TOS) and shipping supply chain software. These and other technology innovations provide improved productivity and open communication in Ports America’s network of terminals.
Our industry needs to leverage innovation and technology. Digital supply chains need to make the shift from concept to reality, and terminals need to adapt to these dynamics and help drive them. Proactive coordination among stakeholders in the supply chain network, including cargo owners and ground transportation entities will advance the goals of greater visibility and efficiency.
Safety should always be top of mind and made a priority. A zero-harm mentality is vital and needs to be implemented throughout the industry and become a foundation core value. As volume increases and equipment gets larger, constant attention to safety measures is even more imperative.