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46 Journal of Commerce | J anuar y 2, 2023 www.joc.com EXECUTIVE COMMENTARY ANNUAL REVIEW & OUTLOOK 2023 Maritime standards to allow seamless, end- to-end communication of accurate, timely data. The other big challenge is sustainability. DCSA represents com - panies with zero-carbon goals and long-term plans to get there. How- ever, through smart collaboration, we can act in the short term to reduce emissions while we wait for the green fuel of the future. Just-in-time (JIT) port call practices, for example, can optimize steaming speeds. According to the International Maritime Orga - nization (IMO), this could reduce fuel consumption by up to 14 percent. JIT port call principles, and standards to enable them, are essential for short-term sustainability gains, and we believe the industry must move toward them now. Lastly, the industry must start transitioning to fully paperless trade, which could unlock $18 billion in gains for the shipping ecosystem. With the UK government recently announcing its intention to legalize digital trade documentation, and 80 percent of bills of lading governed by English law, legal barriers to eBL are breaking down. On the technical side, DCSA is nearing completion of standards that will enable full technical interoperability between all commercial eBL platforms. The DCSA is working with other international bodies to address the digitalization of other trade documents. Georgia Ports Authority Griff Lynch Executive Director gaports.com The largest challenge facing the container shipping industry in 2022 is suffi - cient capacity to handle import cargo volumes, which are projected to remain ele- vated at least through the spring. The need for expansion exists both on- and off-terminal. With warehouse operators unable to process cargo fast enough to keep up with arriving containers, import dwell times have doubled at seaports. This has had the domino effect of slowing vessel service. For port authorities, this dynamic requires building additional con - tainer capacity by reconfiguring existing terminal space, expansion onto contiguous property, or the addition of whole new terminals. At ports where intermodal rail does not face congestion, the transfer of cargo from truck to train can also help to clear space for incoming containers. Ports that can expedite expan- sion projects with available land and capital will benefit the entire supply chain by easing the transi - tion between marine and surface transportation. Beyond terminal gates, private investment is necessary to provide the capacity required to ensure the free flow of goods from ports, through distribution centers, and on to the ultimate consumer. A partial solution would be to develop pop-up locations at under-utilized rail facilities, as well as inland empty yards that have the capacity to take on cargo. In addition, private investors need to build in greater capacity by expanding existing structures and adding new ones. Additional square footage is needed to handle the cur - rent influx, but also to accommodate future growth once the current spike subsides. Workforce is another important aspect of container-handling capac- ity. As distribution centers grow to take on increased business, oper- ators will need to add employees. Finding good people is no small task, so workforce development will be a key factor in the logistics sector's success in 2022. Hamburg Süd Poul Hestbaek CEO hamburgsud.com The past years have featured a whole col- lection of disruption, from pandemic- related lock- downs to a sudden exit from markets due to the war in Ukraine. While the bottle- necks are easing, supply chain logistics are no longer perceived as a mere cost factor to be minimized, but as an important business enabler and potential source of competitive advantage when set up correctly. Setting them up correctly means adding resilience, visibility, and sustainability. Distribution-Publications, Inc. (DPI) James E. Devine Jr. President dpiusa.com Over the past three years, more than 2,800 new non-vessel-operating com- mon carriers (NVOs) have obtained the approval of the US Federal Maritime Commission (FMC) to serve US trade lanes. Will the drop in volumes and freight rates cause an equal number to quit this business in 2023? Or will many of these newcomers hang in there? The spectacular rise in freight rates for containerized cargo in US trade lanes during the supply chain crisis, combined with strong volumes, made the NVO business very attractive from mid-2020 through mid-2022. According to the FMC's 2019 fiscal year report, at the close of FY2019 there were 5,716 NVOs with FMC approval to operate in US trade lanes. This grew to 6,932 at the close of FY2021 and soared to 8,582 as of November 2022, according to FMC data. With freight rates hitting record-setting highs and cargo owners desperately seeking container space on fully booked vessels, the oppor - tunities for new NVOs in US trade lanes were extremely attractive. Many firms that previously limited their business to ocean forwarding took the steps required to become FMC-approved NVOs. As freight rates fall back to earth and volumes decline sharply, will most of these NVOs exit US trades? It seems likely, but there is another reason for this growth in FMC-approved NVOs that may cause many to hang in there. Over the past three years, several ocean carriers adopted new policies that make it difficult for ocean forwarders outside the US to obtain bookings and freight rates unless the forwarder is an FMC- approved NVO. Many China-based forwarders advise that without a valid FMC registration, it is now impossible to obtain competitive rates for their US-bound shipments. For this reason, many new NVOs may hold on to their FMC registrations. "The spectacular rise in freight rates for containerized cargo in US trade lanes during the supply chain crisis, combined with strong volumes, made the NVO business very attractive from mid-2020 through mid-2022." ◀ "Private investment is necessary to provide the capacity required to ensure the free flow of goods from ports, through distribution centers, and on to the ultimate consumer. " Griff Lynch