by Ann Reus, Feed & Grain magazine
The top factors affecting global logistics right now are hedging ocean rates, environmental and geopolitical challenges, U.S. port infrastructure, railroads and technology, according to Caitlin Murphy, CEO of Global Gateway Logistics.
Murphy spoke March 13 at the American Feed Industry Association (AFIA) Purchasing and Ingredient Suppliers Conference in San Antonio.
1. Hedging ocean rates: Changing import container rates make it difficult to plan ahead. Rates, routes, carriers and availability are constantly in flux.
2. Environmental/geopolitical: Container rates continue to be sensitive to environmental and geopolitical factors, such as drought in the Panama Canal region and conflict in the Red Sea.
3. U.S. port infrastructure: US$17 billion from the Bipartisan Infrastructure Bill is going toward port infrastructure. The problems of delays, lack of equipment and poor communication between the ports and rail could be fixed by ports increasing staff and space, investing in new equipment and renewed planning.
4. Railroad: US$30 billion in infrastructure funding is going toward 70 rail improvement projects in 35 states. Delays, outdated equipment and tracking are the main problems with rail, and these can be fixed by terminals increasing staff and rethinking planning, as well as investing in terminal chassis and railcar equipment with better technology.
5. Technology: Shippers, freight forwarders and non-vessel operating common carriers (NVOCC) should be investing in newer technologies that can enhance visibility, planning and shipment/inventory management.
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