The trans-Pacific trade experienced another challenging year in 2014. The logistics supply chain was pushed to the limits by winter storms, trucker shortages, port congestion and slow productivity. As we look toward 2015, the overall U.S. economic situation continues to improve, but the operational situation will remain very fragile.
The important issues will remain the same as most problems are carried into the new year — trucking shortages, congestion, lower productivity. While some issues can be resolved with the conclusion of the ILWU-PMA negotiations, others will require better collaboration and partnership within the industry to address those concerns.
Carriers are focused on controlling costs, equipment and vessel utilization, and network optimization, while shippers want better transits and higher service quality. It is essential that both sides accept the responsibility of rising costs as it is the only way to address the varied needs of each group. Improving relationships through more frequent and open communication with ownership and accountability can create the win-win outcome. This return-to-basics attitude will bring the industry forward to add efficiency and value to the supply chain this year.
Y.H. Jung, Managing Director, Hanjin Shipping America