Michael F. Hassing, President and CEO, Ports America

https://www.portsamerica.com
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Michael F. Hassing

The container shipping market has undergone considerable change during the past few years, and further changes are expected in 2017 and 2018. The creation of new mega-alliances, further consolidation of carriers, and volume concentration in key ports will have significant implications on our industry, creating challenges as well as opportunities. The major driver is the cascading of ultra-large container vessels from the Europe-Far East trade lanes to the Far East-US trade lanes. This will create substantial bottlenecks at various terminal interfaces, which include cranes, yard, gates, trucks, and rail.

Enhanced e-commerce platforms and digital solutions will be essential in optimizing supply chain visibility and efficiencies. Automation of US port activities will be a key driver in delivering competitive, distinguished services amid ever-growing global automation. Management and labor will need to strengthen their relationships, focusing on the long-term viability, efficiency, and productivity of US ports and the supply chain as a whole.

The shipping industry is fundamental to enabling competition between all stakeholders. Any potential imbalances could significantly impact trade growth and development. From a regulatory standpoint, we are confident the Federal Maritime Commission will continue to ensure that a proper balance in the market exists, aligning shippers and carriers interests for a successful, competitive, transparent, and sustainable container shipping future.

Public-private partnerships and infrastructure investments will be increasingly important as larger vessels, deployed by concentrated critical mass alliances, are cascaded into North American routes. PPPs provide opportunities for developing and financing needed infrastructure as well as proper management so critical for success. Increased equipment capacity, efficient land usage, and long-term investments are vital in seeking solutions to bottlenecks created by ultra-large container vessels, rising volumes, and productivity issues.

Safety continues to be crucial in all operations. The safety of employees, contractors and visitors is of utmost importance. Safety is a mindset and culture, and, as such, the industry must remain committed to zero harm.