Logistics Management

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If you are looking for a good pre-Olympics read, and wish to learn more about the complexity of doing business in the host country, check out The China Price: The True Cost of Chinese Competitive Advantage (Penguin Press). Alexandra Harney, a reporter for the Financial Times, takes a close look at that nation's changing manufacturing processes, and pulls no punches when it comes to measuring their lomg-term impact on shipping and sourcing. A more mobile and demanding workforce is transforming the industrial base there. Are U.S. companies prepared to be part of that social revolution? Harney hopes so.

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With the surging worldwide demand for food and raw materials, US exporters may be seeking alternatives to containerized shipping. Some industry analysts are telling us that a revival of bulk/and breakbulk transport is in for a boost. If true, this means more traffic will be driven to some of the smaller seaports in the developing world that have the concentration of labor and warehousing to discharge and store these goods. Inland distribution, however, may be another matter...and a major challenge.

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When the Agriculture Transportation Coalition meets in San Francisco this June, shippers will confront ocean carrier executives with a vexing question: "Where are the containers?" With California's Central Valley growers poised for high season exporting, the boxes just can't be found. Does this require emergency measures or are carriers too complacent to take action?

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Just when overseas demand for U.S. raw materials and manufactured goods is ramping up, shippers are scrambling to find containers and chassis to meet the orders. The fact that ocean carriers have reconfigured their deployment schedules in the Transpacific has exacerbated the situation. How can shippers here take advantage of new business opportunities before it’s too late?

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U.S. shippers are responding to the weak economy by keeping their inventories leaner than lean, thereby putting less strain on the nation’s containerized gateways. Meanwhile, the port authorities are making the most of this time by concentrating on new ways of doing business. If the result is more efficiency and less pollution in the future, can this be all bad?

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Trade analysts are forecasting a deeper slump in the transpacific trade this year, and yet port authorities at the three leading U.S. West Coast gateways may be putting in place strategies that could make their destinations less attractive in the future. Will shippers tire of fighting proposed container fees and unionized drayage and seek all-water alternatives to the East Coast?

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Shippers are being confronted with a number of insurance options this year, sorely testing their risk threshold. What is your strategy? Multiple policies from various providers or "one-stop shopping" from a multinational transport provider?

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While elected government officials elsewhere on the West Coast are doing all they can to limit seaport expansion by imposing shipper fees and taxes, Alaska congressmen Sen. Ted Stevens and Rep. Don Young have used their influence to use federal money for improving cargo operations at the Port of Anchorage. Public interest groups like Taxpayers for Common Sense object, while others applaud this “creative” funding. Your views?

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Now that the disappointing holiday sales figures are in, retailers are demanding immediate action by our nation's lawmakers to stimulate the economy. Meanwhile, shippers are frantically busy drawing up new business plans and revising their own modestly bullish forecasts. Is all of this a case of "too much, too late" or a sensible solution for a rebound?

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