Issue link: https://jocdigital.uberflip.com/i/1488405
Januar y 2, 2023 | Journal of Commerce 95 www.joc.com EXECUTIVE COMMENTARY 2023 ANNUAL REVIEW & OUTLOOK Surface Transportation ◀ "Educating customers on transactional issues and detailed operational handoffs will be even more important in 2023 ." Dennis Lombardi and creating digital documents that support the training and reference material for container inspectors on a global scale. These new products are being rolled out at the beginning of this year. During 2022 we partnered with other global associations and built great working relationships, and we will continue to grow those rela - tionships in 2023 and beyond. These relationships are based on trust and understanding and must be nur - tured over time. The same holds true for all business relationships, even in logistics. MIT Center for Transportation and Logistics Chris Caplice Executive Director ctl.mit.edu After two years of deal- ing with an exceptionally tight truck- load market, shippers are currently enjoying an inverted market (where average spot rates are below con- tract). Contract rates are dropping, carrier acceptance rates are high, and capacity is readily available. But smart shippers know that the mar- ket is cyclical and that now is the time to lay the groundwork to secure required capacity when the market tightens. It all starts with better under- standing your network. While freight networks differ shipper to shipper, they all share two common traits. First, most of the shipment volume is concentrated on very few lanes with the majority of the lanes carrying very little of the overall volume. Second, many, if not most, of these lower-volume lanes do not repeat year over year. Shippers should segment the lanes within their network based on shipment frequency, consistency, and balance and then match them to the appropriate procurement method in their port - folios. High- volume, consistent, and balanced lanes are best handled Despite the challenges asso- ciated with an extremely dynamic marketplace and shifting gateway traffic, our members met the needs of their customers in 2022. For ship - pers to ensure capacity, they need to share volumes and expectations with their suppliers and vendors and develop cooperative solutions instead of adversarial relationships. Our members work hard to know their customers and keep pace with equipment requirements. Educating customers on transactional issues and detailed operational handoffs will be even more important in 2023 to make sure they have transparency into what's happening in any situ - ation and will hopefully help slow down new attempts to regulate or legislate short-term supply chain issues. Following the lead of our mem- bers, the Institute of International Container Lessors (IICL) reviewed and adjusted our internal processes and invested in developing addi- tional online training opportunities Institute of International Container Lessors Dennis Lombardi President iicl.org Another roller-coaster year for sup - ply chain equipment was experi - enced in 2022. As a trade association representing container lessors and chassis providers, we watched and helped our members develop strategies to adapt and meet demands globally and nationally to shifting supply chain needs. Tariffs implemented in 2021 and general market conditions in 2022 had an impact on equipment price and availability that I expect will con - tinue into this year (despite anticipated normalization of global trade) and beyond. Intermodal Association of North America Joni Casey President and CEO intermodal.org For post-pandemic intermodal supply chains, cooperation within and across competing modes will be key to supporting new shipper strat - egies. Intermodal is, by definition, a "team sport" in which transportation stake- holders must work together toward the same goal: delivering freight. The intermodal industry achieves this goal every day through a choreography invisible to most end users. This list highlights the steps to move a single import shipment, the necessary equipment — boxes and chassis — and the imperative for a third-party logistics (3PL) coordinator/quarterback. 1. Vessel arrival at marine terminal 2. Container is offloaded onto chassis or stacked 3. Trucker picks up the container/chassis, delivers to the transload warehouse 4. Warehouse transloads containers into 53' domestic container 5. Trucker picks up empty international container, returns to terminal/depot 6. Trucker picks up loaded 53' domestic container to ingate at rail 7. Rail transit to inland intermodal facility 8. Train arrives at the ramp — container grounding dependent on chassis at ramp 9. Trucker outgates from the ramp, delivers to the consignee, then returns the empty container and chassis At each stage above, in its purest form, cargo and equipment are exchanged, custody is transferred, and information is shared. These nodes between modes give intermodal its flexibility and versatility, providing track, trace, and rerouting opportunities. Recent supply chain malfunctions, however, have served to disrupt the normal flow of intermodal cargo. This has required increased visibility, and above all, cooperation among stakeholders to accomplish what should be a seamless transaction. So, as we exit one period of uncertainty and prepare for the "new nor - mal," intermodal cooperation will continue to provide a value proposition for shippers. "As we exit one period of uncertainty and prepare for the 'new normal,' intermodal cooperation will continue to provide a value proposition for shippers." ▶ "Smart shippers know that the market is cyclical and that now is the time to lay the groundwork to secure required capacity when the market tightens." Chris Caplice