This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
A new normal may well be emerging—changes in global supply chains are occurring more frequently in response to market demands shifting more rapidly. This is due to externally imposed actions and policies, such as the recent US Section 301 China trade tariffs.
The results experienced in 2019 were exaggerated surges and slumps in cargo volumes, as many cargo interests front-loaded cargo prior to the tariff implementation dates and then built down that inventory over time. Certain cargo sourcing has relocated to other locations, others have continued shipping, and some have stopped participating in the China market. The ability to proactively address these surges, slumps, and relocations is a challenge for many supply chain participants.
Information is key to planning for market shifts. An opportunity exists to develop and implement improved timely information exchange and service coordination processes through collaborative approaches, utilizing effective communications, enhanced support service processes, and coordinated transportation services. Looking ahead, addressing dynamic and flexible supply chain service requirements through improved information sharing will be critical to success. Utilizing digital platforms and effective interpersonal skills will become more essential in the upcoming years as market-changing dynamics continue in the international container trades.
Students in the cargo transportation and services fields, including supply chain and logistics, have the unique opportunity to help develop and implement new tools and techniques, including IoT solutions, predictive analytics, and inventory management tools, that will provide transparent and real-time information and enhance accuracy with forecasting and resultant efficiencies.
Both classroom studies and field internships can offer students opportunities to understand and develop solutions that facilitate trade to better prepare them for the dynamic challenges that lie ahead in careers within the international transportation industry.