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Januar y 2, 2023 | Journal of Commerce 49 www.joc.com EXECUTIVE COMMENTARY 2023 ANNUAL REVIEW & OUTLOOK Maritime Our inland logistics acquisi- tions have paved the way for more extensive supply chain capabilities. Maersk, through its acquisitions and organic growth, now has 155 ware- housing, distribution, e-commerce, cold storage, and first-, last-, and middle-mile locations. For supply chain speed, we acquired trans-Atlantic air freight operator Senator International and added trans-Pacific capacity through Maersk Air Cargo's purchase of Boe - ing planes. To help customers address regu- latory compliance and tariff exposure challenges, Maersk Customs Services USA offers an artificial intelligence (AI) product that profiles global sup- plier sourcing that US Customs and Border Protection (CBP) accepts for its high degree of data accuracy. Our commitment to sustain- ability is reflected in the purchase of over 400 electric trucks and investments in green methanol fuel producers. Maersk is taking on the global supply chain's biggest chal- lenges with purpose, values, and technology. other depleted container inventory in many origin ports. When the vessels reached the Southern Cali - fornia ports, the demand for chassis became so intense, drayage provid- ers began hoarding chassis, thereby depleting the chassis inventory. The asset imbalance that ensued is now history. Will we learn this lesson? This is not a lesson about con - gestion, as many in the media would have us believe. It is not a story about volumes of containers. It is a lesson about managing the stakeholders who control the assets. The term "supply chain" is a misnomer and does not really describe what must be managed. The volatility we experienced through COVID was caused by an imbalance in what I refer to as the "asset chain." If assets cannot move and are not synchronized, there can be no supply chain. By assets I am referring to containers, terminals, vessels, chassis, truck power, and warehouses. In May of 2020, car - riers implemented blank sailings to keep space tight as China was opening from their initial COVID lockdown. Carriers continued the blank sailings through June. In June, carriers stopped the blank sailings and added 18 extra loaders to the rotations. At the time, the average size vessel plying the trans-Pacific was 9,500 TEU. The elimination of blank sailings combined with the addition of 18 extra loaders created a slingshot-type effect, moving a massive number of containers from one side of the Pacific to the other, depleting container inventories, thereby making boxes scarce. Volume does not necessarily mean congestion. But the imbalance of assets creates the environment where congestion may occur. Yes, the slowdown helps ease the conges - tion, but as I have written and said many times, when carriers in early 2020 ratcheted the blank sailings so tightly, then released them all at once in June along with 18 extra loaders, it produced a slingshot-like effect, moving a massive number of containers from China to the US all at once, depleting container inventory and availability at origin, thus an increase in rates and pre - mium payments. Once the vessels arrived in Los Angeles-Long Beach, it created a huge demand for chassis. The chassis inventory was depleted, and another asset was in demand. If vessel schedules remain consistent, we will not have volatility and thus, congestion will be at a minimum. Maersk North America Narin Phol Regional Managing Director maersk.com The pandemic elevated the importance of logistics' role in business and society. The risk of supply chain disruption is a constant. Sup - ply chains need to be resilient, with multiple contingencies in place that are easily implemented with speed and accountability. In North America, our multi- year approach to adding supply chain solutions has led to investing billions of dollars in infrastructure capacity. Maersk Canada Omar Shamsie President maersk.com The pandemic elevated the importance of logistics' role in business and societal impact. The risk of supply chain disruption is a constant. Supply chains need to be resilient, with multiple contingencies in place that are easily implemented with speed and accountability. In North America, our multi-year approach to adding supply chain solu - tions has led to investing billions of dollars in infrastructure capacity. Our inland logistics acquisitions have paved the way for more extensive supply chain capabilities. Maersk, through its acquisitions and organic growth, now has 155 warehousing, distribution, e-commerce, cold stor - age, and first-, last-, and middle-mile locations. For supply chain speed, we acquired trans- Atlantic air freight operator Senator International and added trans-Pacific capacity through Maersk Air Cargo's purchase of Boeing planes. To help customers address regu - latory compliance and tariff exposure challenges, Maersk Customs Services offers an artificial intelligence (AI) product that profiles supplier sourcing that US Customs and Border Protec - tion (CBP) accepts for its high degree of accuracy. Our commitment to sustainability is reflected in the purchase of over 400 electric trucks and investments in green methanol fuel producers. In Canada, we opened a 568,000-sq.-foot Maersk warehouse in Toronto that provides more sup - ply chain storage, transloading, and fulfillment options. In Vancouver, we opened our Vancouver Transload Center to help Canadian supply chains achieve better flow and more routing options in the Pacific. Maersk is taking on the global supply chain's big- gest challenges in supply chains with purpose, values, and technology. "In North America, our multi-year approach to adding supply chain solutions has led to investing billions of dollars in infrastructure capacity." ▶ "Supply chains need to be resilient, with multiple contingencies in place that are easily implemented with speed and accountability." Narin Phol