The JOC 2023 Annual Review and Outlook Executive Commentary - Anil Vitarana

Anil J. Vitarana 

Principal

 
 

“Ocean carriers have an obligation  to invest in the development of  operational efficiencies that could  minimize supply chain bottlenecks.”



Although the  supply chain  chaos that  lasted for two  years has  eased due to  reduced US  imports, the quest to avoid repetition should not stop. In my ARO 2022 comments, I  advocated for greater resources to  upgrade the US Maritime Administration’s (MARAD) Marine  Highway Program through advancing infrastructure developments at secondary ports on both coasts  and improving connectivity to the  intermodal network. Despite the  Department of Transportation’s  (DOT) aspirations, the progress has  been disappointing. President Joe Biden’s off dock container terminal plan has  received mixed reviews from the  industry. With funding available  through MARAD’s Port Infrastructure Development Program, the  plan is expected to see some, albeit  limited, traction. The tepid reaction  underscores the industry’s reluctance to seek long-term solutions.  

Collapsible containers have  been periodically touted as a solution to inadequate storage capacity  and expediting the return and costs  of moving empty containers. Dock  labor unions and truck and rail  unions have not warmed up to the  idea, citing operational and safety  constraints. This has not deterred  New Jersey–based start up Staxxon  from pursuing its project to build  foldable, accordion-style containers. 

With over half a trillion dollars in earnings over the past two years, ocean carriers have an obligation to invest in the development of operational efficiencies that could minimize supply chain bottlenecks. This could include (but is not limited to) investment in US truck and rail services, building off-dock terminals and depots, increasing services to secondary ports, and investing in terminal developments therein and establishing US flag operations that could offer coastal shipping services.

Barbara Yeninas