Recent discussions on how to effectively expand Southern California port operating hours and improve gate transaction velocity are indeed meaningful and constructive.
However, advances to one component in the supply chain will not remedy the fundamental challenges that are distressing the entire system. Short of undertaking an approach that similarly bolsters all infrastructure deficiencies, congestion will persist at random chokepoints.
At the same time, capacity planning should not be founded on extraordinary circumstances. An effectual logistics network capable of meeting the demand of predictable ebb and flow that is firing on all cylinders from ship to shelf both technologically and tangibly is always essential. Only in this way can unexpected challenges be most efficiently met with optimal capability.
Correspondingly, the lack of a sufficient workforce in all distribution network sectors has been a growing problem for some time, a problem that has only been emphasized by the influence of COVID-19. Appropriate time and consideration should be given to developing comprehensive incentives that will entice qualified individuals to consider these essential occupations.
Volume is the fundamental issue. The unprecedented surge cascading through and overwhelming the supply chain exacerbated by a seeming shift that removes just-in-time supply from the quantity-on-hand equation has taken all stakeholders beyond the brink despite the best efforts of all parties.
The World Trade Organization (WTO) forecasts international trade will grow 4.7 percent in 2022, but key questions remain, making predictions on how long the surge will last challenging. If consumer spending and lifestyle changes keeping volume elevated are lasting, the uncertainty is how scalable infrastructure solutions will need to be.
The expansions required aren’t easily projected or accomplished. Considerable investment and retooling proposals will take time and must be proven sustainable in the long term.
No logistics network stakeholder can resolve these issues single-handedly. Transparent cooperation to identify stresses and develop feasible solutions should be the industry’s unified 2022 objective.