American port supply chains have resolved the congestion issues that affected the industry ever since the COVID-19 pandemic disrupted the global shipping sector. Key problems—such as vessel backlogs, terminal congestion, and prolonged container dwell times — have subsided as the pandemic-driven surge recedes.
But experts are already sounding the alarm, warning that cargo demand is expected to surge again. And a majority of terminal operators may not be prepared for the next cargo surge.
Knowing this, what short-term measures and long-term initiatives can you implement to tackle the next cargo surge proactively?
Tip #1 – Plan Ahead: Develop Robust Contingency Plans
Before the pandemic, supply chain risk was relatively low. But now, that risk is highly elevated and expected to remain that way for the next decade. As S&P Global notes, the implications for this are significant:
“Elevated supply chain risk for corporations managing long-haul, transcontinental supply chains means a greater risk of delay and less predictability in end-to-end ocean transport transit times. That, in turn, will result in longer product development and manufacturing lead times, higher inventory levels and greater use of airfreight, which can be up to 70 times the cost of ocean freight on a per-unit basis.”
We may not know what the future holds, but we can make educated guesses and prepare accordingly. By performing periodic reviews and updates, you can stay prepared for changing market conditions, new regulations, or emerging risks. Taking proactive measures ensures that you can respond to any situation.
Tip #2 – Embrace Technology: Invest in Emerging Technologies
In light of these elevated risks, newly emerging technologies have the potential to improve decision-making and increase supply chain predictability. The right terminal operating system (TOS) can optimize cargo handling processes and enhance operational efficiency.
With the help of data analytics, predictive modeling, automation, and real-time visibility tools, terminal operators can:
- Reallocate labor – Automation can replace time-consuming manual tasks, freeing up the labor force to focus on value-add activities.
- Improve accuracy – In many instances, an automated TOS can handle processes more efficiently, resulting in fewer delays, misplaced cargo, or other costly errors.
- Faster cargo handling – Automation can optimize operations, fostering faster response times while streamlining workflows. This improves efficiency and prepares terminals to handle higher volumes without bottlenecks and congestion.
- Monitor performance – Real-time visibility tools allow you to monitor performance, track cargo movement, and make informed decisions according to the most recent data.
- Predict trends – Data analytics and predictive modeling tools make it easier to identify and get ahead of patterns and trends or nip potential issues in the bud.
Tip #3 – Build Resilience: Foster Agile Supply Chains
To prepare for future surges, terminals must develop resilient and dynamic supply chains that can readily respond to demand fluctuations or changing market conditions.
Establishing strong, mutually-beneficial partnerships with reliable suppliers, carriers, and logistics providers is the key to achieving this resilience. By fostering these relationships, terminals can ensure a robust network of support, enabling them to react swiftly to disruptions and maintain smooth operations.
Taking the steps to create a flexible and agile supply chain will position your terminal to:
- Adjust to changing customer demands
- Optimize transportation routes
- Manage inventory effectively
- Mitigate risks and disruptions
- Improve collaboration and coordination
Tip #4 – Enhance Communication: Foster Collaboration Among Stakeholders
Creating a resilient and agile supply chain is a challenge without targeted collaboration and communication among all stakeholders involved in the supply chain process. Shippers, carriers, freight forwarders, customs brokers, and port authorities must work cohesively, each equipped with the necessary information and support tailored to their specific roles.
What does this entail?
- Establishing clear communication channels and hierarchies
- Defining roles and responsibilities
- Sharing information in real-time
- Coordinating schedules
- Aligning goals and expectations
- Encouraging open dialogue and feedback
Terminals that implement these strategies can ensure smooth operations and minimize disruptions during peak cargo volumes.
Tip #5 – Train and Prepare: Invest in Workforce and Equipment
When it comes to handling a sudden cargo surge, your workforce can be a game-changer. Having a team that’s trained and well-prepared to tackle any situation that comes their way will respond with speed and efficiency, ensuring smooth operations even during challenging times.
How can you ensure that your team is ready to respond at a moment’s notice?
- Provide regular training and skill development to keep your teams up-to-date with your technology and equipment.
- Establish clear protocols and procedures so that your team knows what is expected of them and how to react in high-pressure situations.
- Ensure you have the necessary equipment and resources to handle increased cargo volumes efficiently.
- Foster a culture of teamwork and collaboration, highlighting the importance of collective responsibility.
- Develop contingency staffing plans so that you can rapidly scale your workforce up or down to meet demand fluctuations.
Be Prepared With Tideworks’ Powerful Suite of Tools
If COVID-19 taught us anything, it’s that preparing for the unknown is well worth the investment. After all, the pandemic wasn’t the first challenge to hit our shores. And it won’t be the last.
Preparing now will position you to thrive in the future. And Tideworks offers comprehensive TOS solutions that help you do just that. Our software empowers terminals to optimize operations and enhance efficiency to stay resilient in the face of disruptions.
Contact our team to take the first step towards a more efficient and future-proof terminal.