2014 was a remarkable year for many reasons, not the least of which was a return of debilitating congestion at ports and key inland hubs, resulting from weather and labor issues exacerbating what has clearly once again become a capacity issue borne from years of underinvestment in infrastructure and an unwillingness from an industry to change to meet the challenges of a new reality.
Whether it is human nature or blind competitiveness that compels companies to continue pushing outdated solutions and steadfastly avoid changing an approach that has driven mediocrity and inconsistency at best, is perhaps unanswerable. What is undeniable, however, is that change is needed — and change is coming to our industry — whether or not we embrace it.
To quote Albert Einstein: “We cannot solve our problems with the same thinking we used when we created them.” As an industry, we cannot continue to accept that terminal and port productivity trails other geographies; we cannot continue to lean on antiquated chassis models that only ensure massive inefficiency of critical assets while tying up precious terminals and adjacent container yards; we cannot continue to offer excessive “free time,” thinking that the equipment or land it occupies is ever really “free”; we cannot continue to ignore the availability and benefits of new technology that will streamline booking, documentation and operational activities, increasing time for more productive, revenue generating activities; and, speaking as a carrier, we cannot continue to deploy capacity that far outstrips expected demand throughout the year and expect to achieve acceptable results that enable continued investment.
For too long, we have accepted a penchant for making a complex business complicated. There are a myriad of ways we can simplify our business and daily interactions, reduce our mutual costs and enable a future of more sustainable growth and profitability for all who contribute, but we have to change our approach. The future is coming whether we’re ready for it or not, and if 2014 provides any evidence, more of the same is definitely NOT an answer.
Michael J. White, President and CEO, Maersk Line North America