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January 2 2023

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48 Journal of Commerce | J anuar y 2, 2023 EXECUTIVE COMMENTARY ANNUAL REVIEW & OUTLOOK 2023 Maritime Jon Monroe Consulting Jon Monroe President, Business Process Design and Improvement, Ocean Supply Chain Logistics, and Investment Due Diligence COVID-19 rocked our world in so many ways. In hindsight, we took so much for granted about the many aspects of managing what we call a supply chain. The occurrence of several black swan events only made matters worse. So, what have we learned about how to manage our supply chains? We have learned that without a synchronized management of assets, the supply chain cannot be managed. The flow of goods is only one piece of managing a supply chain but as we have learned, a very critical piece. In many ways, what we have experienced throughout the past two and a half years has become a critical "wake-up call." We have come to realize how important our logistics processes are and how important the people who manage it have become. Until COVID appeared on our doorstep, logistics and supply chain management was underval - ued as a discipline and those people responsible for managing that part of the business were considered stepchildren of the organization. This part of the organization was so far removed from the C-suite that executives rarely made it to the top tier of the organization chart. Then COVID hit. In May 2020, carrier-initiated blank sailings — meant to keep space tight and rates up — created the makings of a perfect storm. As the end of May neared, the ocean carriers released the vessels from the blank sailings, but by this time, containers were backed up at many of the China ports. In an effort to relieve the congestion at origin, carriers initiated an extra 18 sailings which, at the time, were known as extra loaders. The massive move - ment of so many containers moving from one side of the Pacific to the past has been the painful lack of visibility. This will be solved by increasingly digitalizing logistics and creating a single source of truth by bundling the data of all logistics providers of a cargo owner. However, perhaps the most challenging resiliency tests are yet to come. In this decade, supply chain design must be made compatible with environmental, social, and governance (ESG) commitments to ensure products are manufactured, sourced, and delivered in a sustain - able and socially acceptable manner. This process will be driven by future demands of customers, regulators, and net-zero commitments. For a company such as Hamburg Süd — known for its personal, local service — the most important factor is our employees and their dedi - cation to quality. Securing talents and providing them prospects and a robust career path will continue to be critical. It defines our ability to deliver the level of customer service that our customers expect from us. During the pandemic, many containers have been slowed down, accelerated, redirected, or switched to alternative modes of transport. Thus, flexibility and agility have become main ingredients to increas - ing the resiliency of supply chains. For the sake of resilience, we also see new ways of contracting with a stronger focus on long-term partner- ships, a smaller number of selected partners, and a deeper level of inte- gration. These partnerships will be driven by trust as well as by tangible KPIs, which are defined by the cus- tomer, while the logistics providers deliver on them. A big issue during the disruptive Jacksonville Port Authority (Jaxport) Eric Green CEO Supply chain disruption has changed our day-to-day lives. While it has undoubtedly created new complex- ities, problems, and yes, headaches, what hasn't changed is the fundamen- tals of what we do. Goods still need to be manufactured, transported, and delivered to consumers using complex transportation and logistics systems, including ports, highways, rail, and IT systems. The pandemic forced many of us to think short-term, focused on the latest challenge — whether it's a ship stuck at anchor or a container in need of a chassis. But now, more than ever, we have the responsibility to think strategically and continue to invest our resources in improving the systems that stand the test of time — the infrastructure needed to support an efficient and resilient supply chain. It's heartening to see this investment taking place throughout the nation's transporta - tion network. One example close to home: Our recently completed harbor deepening project is a transformational public-private partnership that will benefit our customers and community for decades to come. This initiative was a joint project of Jaxport, the state of Florida, our federal partners, and one of our tenants, all recognizing the need to continuously evaluate and invest in our transportation assets. Beyond this project, we're also adding eco-friendly container cranes and other state-of- the-art equipment to reduce our carbon footprint while expanding capacity to meet increased cargo demand. To meet the changing needs of the workforce of tomorrow, we're also investing in our people, both in training and a renewed focus on employee engagement and job satisfaction. As transportation and logistics leaders, we can't let the challenges of the moment distract us from our long-term strategy. We must push through near-term tactical problems and make strategic decisions that will benefit our organizations, communities, and supply chain for future generations. "We must push through near-term tactical problems and make strategic decisions that will benefit our organizations, communities, and supply chain for future generations." ▶ "Without a synchronized management of assets, the supply chain cannot be managed." Jon Monroe "Flexibility and agility have become main ingredients to increasing the resiliency of supply chains."

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