The container shipping industry has been in a perpetual state of enhancement since conception, but these innovations have historically been focused on specific aspects at selected times. What we have witnessed over the past three years is an evolution in all segments of trade, yet not on a pre-emptive timetable. Unexpected, considerable growth did not align effectively with global supply chain infrastructure, leaving all to impulsively reassess how they transform to support a rapidly changing consumer culture.
Debilitating ocean terminal congestion; rail, truck, and warehouse limitations; and labor challenges were all worsened by episodic insufficiency of infrastructure and technology. All the while, the underlying needs of our customers — to move cargo from origin to final destination as efficiently and reliably as possible — never changed. This necessity resulted in cargo moving in the least restrictive and most dependable route at the time of booking. Often that was not standard, which led to many modifications, not the least of which was a swing to the East and Gulf coasts. As a result of this volatility, our customers’ requirement for increased visibility into all aspects of their logistics chain, and how to strengthen them to handle a repeat shock, became a renewed priority.
We are beginning to see softening of demand. However, we are still observing the redefinition of how cargo will transport and inventory, thus the awaited new norm. How our customers will redefine their supply chains — whether they will embrace increased inventory and permanently shift away from the traditional just-in-time model or return to pre-pandemic standards — is yet to fully emerge. We will likely see a blend of both. This, coupled with anticipated instability, will see challenges remaining abundant as we enter 2023. Carriers will continue to expand their scope of services and improve supply chain visibility. The more end-to-end solutions a carrier can offer to its customer, the more value it can deliver for all in the industry.