There is a constant conversation in the marine container port environment about the impacts of automation on the jobs of port workers. It surfaces every time port worker contracts come up for renewal, and once again it was an issue in the recent talks between the East and Gulf Coast container port workers and their employers. While an agreement was reached and a strike was averted, guardrails were put into place that will limit the future deployment of automation and technology. Was this the right direction to improve our supply chain?
According to the 2023 Global Container Port Performance Index (CPPI) which evaluates port productivity, the highest ranked United States Port — Charleston, SC — came in at 53rd in the world as measured by container ship in port time. In fact, the US has only eight ports ranked in the Top 100 worldwide. This contrasts with the container volume that moves through US ports, where according to the World Shipping Council the US has 5 ports in the Top 54. Given this imbalance between productivity and volume, shouldn’t we expect better? The answer is yes, but the solution is complicated.
A big part of the challenge is that the supply chain and the containerized freight transportation operational model in the US is complex, more so than in other parts of the world. While technology and automation certainly are an obvious area of opportunity for improvement, it is not an either/or proposition. Many factors come into play, and if you have seen one port, you have seen one port. They are all different.
The US based ports (and more specifically, their terminals) need to change. They are a critical component in our supply chain and are an important economic engine for our nation. Looking backward and working on stovepipes is not going to help our nation remain competitive on the world stage in the long term. This also has downstream effects on other parts of our transportation system and supply chain, including the trucking industry that is serving the critical first and last miles. While the ports are trying to get us there, all stakeholders need to work together more effectively in a united front, with a national focus and framework. We need an all of the above strategy involving technology, data AND automation as part of the solution for us to become more efficient and competitive on the global stage.
Operating in silos is not helping this larger objective. We need federal leadership and a partnership between the public and private sectors at all levels, including state and local involvement to create the optimum environment for advancing the state of the practice and moving our supply chain performance higher up the ladder. We should not be satisfied with 53rd, we can do better. Technology, data, and automation will help us get there more quickly and efficiently and need to be part of the solution — not the problem.