Time to measure it and manage it

Though they could not agree on the right analogy (one speaker from a carrier talked about a narrowing highway, while a top port executive on the panel referred to a plumbing situation of smaller and smaller pipes), a very clear consensus came through that the present system in the States is broken.

One of the panellists, also a top port manager, said that we need to be changing operations to a 21st century mindset- which includes getting to a 24 x 7 mode of working well beyond the load and discharge of vessels. The plumbing analogy rang true here, as the talks described “an increasing lack of fluidity” in the movements of cargo (a pipe rather than a chain, but readers should get the idea). Farther away from the cranes on the wharves, the likelihood of slowdowns grows.

The presentations, held during New York’s “Climate Week” at the United Nations in late September, attracted a coterie of high-level executives from the shipowner community. Though many of those attending the Forum came from the bulk cargo side of the business, there were a fair number of delegates from tonnage providers (who charter vessels out), the actual carriers (who charter vessels in), and even a few from the cargo side. This conference was not aimed at attendees from the port side; other than the panellists- representing large ports on the East and the West coasts, I did not see many stakeholders from local or other ports. Nevertheless, many port planners are no doubt aware of the issues that came up (and might even have some different analogies to describe the blockages and constraints that they’ve experienced), and might possibly have seen similar presentations.

If there is a take-away for readers here, it is a reminder to look at the operations of terminals and transport providers serving the ports- links in the chain farther inland from the wharves.

One entity alone will not solve the problems, but groups of ports (working ad hoc or may be through established trade organisations) might be able to develop strategies for unclogging the pipes (or unjamming the highways) and share their findings with legislators and policy makers. The aphorism “If you can’t measure it, you can’t manage it,” also applies here as the ports work towards moving the mindset forward. It’s important for the port community to be able to quantify the costs of narrowed pipes father away from the docks.

The folks in state capitals and on Capitol Hill will take notice more quickly if presented with actual data on real costs and opportunity costs.