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94 Journal of Commerce | J anuar y 2, 2023 www.joc.com EXECUTIVE COMMENTARY ANNUAL REVIEW & OUTLOOK 2023 Surface Transportation ◀ "With shipment volumes returning to more historical trend levels — and pressures easing — it is time to review and plot a better course, especially as it relates to interchange activity friction" Steven Blust Containerization & Intermodal Institute Steven Blust President containerization.org Over the past two years, COVID-19 has had an adverse impact on virtually every supply chain, nation, community, company, and individual in this great world. With shipment volumes returning to more historical trend levels — and pressures easing — it is time to review and plot a better course, espe - cially as it relates to interchange activity friction, which would allow trade to move forward with greater capability, capacity, and certainty. Recently, there has been significant focus on supply chain congestion, fluidity, and resilience. Symptoms of the resultant supply chain disruption include port and terminal congestion and lack of adequate available equipment and capacity (ports, terminals, equip - ment, inland transportation, and warehousing). Industry stakeholders and government regulators have quickly developed legislative thera- peutics to help relieve the symptoms of the disruptions and resultant con- gestion, but additional action must be taken to address the underlying root causes of those symptoms. Pain points in supply chains are often caused by fragmentation, mis- alignment, or opaqueness, especially with interchange activity responsi- bilities, costs, and risks at the points of interchange. There is evidence that several ocean carriers and trans- portation intermediaries are moving toward end-to-end transportation systems, which could significantly mitigate interchange friction and improve fluidity. Opportunities also exist for sector-focused supply chain players in the establishment of best business practices across supply chain interchange points and pro - cess visibility. Small shippers have expressed concerns that the large shippers obtain better rates due to scale. On the beneficial cargo owner side, the US Shipping Act recognizes shippers' associations as a channel for multi - ple shippers to utilize "strength in numbers" to seek a more level play- ing field with larger shippers. Better understanding and agree- ment of interchange activities, with the dissemination and availability of that information to all the parties involved, can help reduce friction and unnecessary costs and delays. Gulf Winds Brad Elam Vice President, Business Development gwii.com What we continue to learn is that capacity con- straints can't always be directed at truck power. It's the most visible part of the sup- ply chain, being the "final mile," but the ports, rail ramps, and equipment providers (including chassis) all have a direct impact on truck capacity. If any one of those stages experiences disruption — and they will — it will be felt on the final mile. We can all agree that there will always be interruption in supply chain when it comes to capacity. How quick the response will be is a determining factor for the success of the shipper. What shippers are continuing to seek and demand is real-time visibility in their loads so decisions can be made upstream — this leads to having contingency plans in place for when the "what if " happens. You are seeing more discus - sions around contracts not only for power, but storage and equipment. IMC Companies Donna Lemm Chief Commercial Officer imcc.com The American Trucking Association shares that the driver deficit will reach 160,000 by 2030 because of four factors, including driver retirement, industry growth, drivers pushed out of the industry, and drivers seeking alternative careers. The shortage will be further compounded by regulatory requirements. For those reasons, shippers observing best practices with the driver in mind will continue to be served first. The industry will also see realignment and continued changes in response to rising costs, inflation, and new regulations (i.e., AB5 in Cal - ifornia) as we enter 2023. Many drivers who sought their own motor carrier authority these past two years will gravitate to strong employer models. So, what should shippers be doing to ensure they get the capacity they need? Shippers should seek trucking partners that offer asset models, financial stability, strength in driver retention/recruitment, and innovation. Shippers should be looking to optimize networks with trucking partners with technology, visibility, and asset capacity that can offer continued flexibility as into 2023. Finally, shippers should be seeking companies that are mod - ernizing, with eco-friendly fleets and operations leading the effort for sustainability. Shippers are rethinking inland container delivery, with most seek - ing stronger control and visibility by transloading and looking at new options from traditional inland service offerings. These changes are due to challenges with reliability and access to containers at inland rail terminal destinations. In early 2022, traditional inland point inter - modal (IPI) bookings were limited by ocean carriers and shippers were scrambling for transload options once the freight arrived. IPI trends in the interior took an upward trend into the third and fourth quarters, yet inland con- gestion has not dissipated. Containers in large rail hubs such as Chicago, Dallas, Memphis, Kansas City, and Columbus have faced the same obstacles: no chassis, restrictions on an already critical low supply of chassis, and rail grounding. This is unacceptable service to our shippers, and the market demands a new service offering that will get freight offloaded and available. It is here that true inland solution and innovation will lead the industry into a stronger and more reliable product. "Shippers should seek trucking partners that offer asset models, financial stability, strength in driver retention/recruitment, and innovation." ▶ "How quick the response will be is a determining factor for the success of the shipper. " Brad Elam