Cruise not so detached from cargo

COMMENT: The cold weather here in New York of late drove me down to Florida for some warmth, where I was fortunate enough to attend a conference on the cruise busines, writes Barry Parker.

One session on the subject of infrastructure stood out because of its great applicability to the cargo business. The panelists went on about ports that built terminals with limited communications with the cruise lines, with disappointing results. And there were a handful of reports about great collaborations among multiple stakeholders with success stories that encompassed the carriers, the ports, multiple levels of government and even local communities.

Events of the past year have demonstrated that logisticians and other movers of both people and cargo need to have numerous ‘Plan Bs’. And, though Panama has seen its share of delays, the opening of the widened Canal is moving closer and when it does cargo will flow in directions that the infrastructure supports.

A second session at the cruising event dealt with shore excursions. While at first glance this is removed from cargo flows, the various often-heard arguments ‘know your customer- who might change his/ her mind, by the way’ and ‘do your research’ also ring true for cargo.

Shifting cargo flows over the past year have convinced observers that box moves can also be fickle. However, I am not sure if politicians have grasped the implications of this. So hear me now: cargo flows are not set in stone. Carriers can quickly revise their rotations often in support of those Plan Bs. For local leaders, consider the implications of this and set out plans for flows of extra cargo.

In the same way as cruise ports need to get creative about handling the hordes of tourists, regional and local elected officials need to be considering ways to support cargo flows – which may temporary in nature – until whatever crisis that precipitated the diversion eases.

Of course, there will be large baseline flows of cargo, however as the logistics world tries to digest all the US West Coast traumas and dramas of 2014, I can’t help but think that there may be sizeable chunks of ‘incremental cargo’ that ports might seek to attract.

And, just as the cruise lines continually tweak their shore trips, the underlying logistics chaos giving rise to incremental moves – which might be related to labour troubles, but also to growing ship sizes – may change from month to month. So it is imperative that the port people and their governmental partners be ready to pounce on glitches in otherwise smooth supply chains.