If it ain’t broke – don’t fix it…really?

Well, in writing these opinion pieces, I’ve avoided the touchy issues of labour. After all, ports are fuelled by people, and, as the saying goes, “if it ain’t broke- don’t fix it.” But the problem with that is maybe it is “broken,” however you define it!

Consider that US West Coast ports, which have been in the midst of “labour negotiations” (another phrase with a vague definition) for nearly a year, are now slowing down. Yes, the post-pandemic stats are good, but recent reports suggest that manpower shortages/not enough workers, have contributed to actual shutdowns at Los Angeles/Long Beach (LA/ LB) in early April. The backdrop, evidenced in statistics put together by John McCown and other analysts, has confirmed what was visible to observers – a significant portion of cargo has shifted to the East Coast. While that is closer to my geography, I am not standing up and cheering. The repositioning of cargo givesa hint as to the nature of the above-mentioned breakage.

To some degree, the West Coast ports have struggled with productivity. Maybe it is time now for further exploration of the dreaded “A” word, which is “A” for automation (a feature in some, though not all, of the East Coast terminals). The move to “A” need not connote a whole elimination of jobs. It does, however, suggest that a middle ground, that of re-skilling the workforce, might be part of the solutions. Just like “seafarers” aboard ships are increasingly schooled with capabilities for operating in a more digitalised realm, the shore-side must come to grips with the bigger picture of how commerce can flow.

Though the ports are not operating the terminals in many cases, and are performing the landlord function, they can play an important role in prodding both terminals and labour to explore moves towards this middle ground.

Supply chain data initiatives abound at this point, hoping to bring some fluidity to what’s been a very fragmented market structure. Individual ports (including those mentioned above) have well designed “data” displays reflecting their activities. Yet they are all in silos, not really purposed for interfacing with broader solutions that could be developed.

Automation at ports would enhance the ability to integrate into supply chain optimisation efforts. Not surprisingly (and, again I am not applauding), the productivity of US ports has ranked in the lower portions of the leaderboard when port performance is measured. But moves towards a more digitalised future (with the labour increasingly taking on supervisory roles) could be an important step towards enhanced productivity.