Container Shortages, Record Freight Rates, & Fees, Oh My!

Is Port Automation Lastly Coming to the U.S.?


If there may be an trade the place effectivity and productiveness matter (and is there an trade the place it doesn’t?), it’s worldwide transport.

For years, know-how has existed, been applied world wide, and superior to make ports extra environment friendly and productive by way of automation. However that know-how has been, for essentially the most half, saved out of U.S. ports.

It appears to be like like which may lastly be altering as The Wall Avenue Journal (WSJ) simply reported the next scene:

At one of many busiest transport terminals within the U.S., greater than two dozen big crimson robots wheeled cargo containers alongside the docks on a latest morning, handing the containers off to a different set of androids gliding alongside lengthy rows of stacked containers earlier than easily setting the containers down in exact spots.

At the Port of Hamburg in Germany or the Port of Rotterdam within the Netherlands, totally automated terminals have vastly boosted productiveness for a while.

In the meantime, U.S. shippers have seen port slowdowns and congestion plague their shipments and value them worldwide contracts and home gross sales of imported merchandise.

The U.S. is meant to be a frontrunner, if not THE chief, in know-how, so why are we lagging up to now behind in terms of port know-how and automation?

It may most likely be summed up in a single phrase: unions.

Longshore unions have fought laborious to maintain automation out of the ports with a view to protect jobs.

That is comprehensible. One of many advantages of automation for port house owners and operators is it decreases the variety of employees wanted to deal with port operations. Over time, that represents a major value financial savings, however that value is dockworker jobs.

Nonetheless, the Worldwide Longshore & Warehouse Union (ILWU) has not helped the case for sacrificing technological development to avoid wasting jobs on the ports by organizing slowdowns, successfully shutting down the ports, and creating large congestion issues each time their contract expires.

The U.S. financial system has suffered losses within the billions of {dollars} over labor strife on the ports.

If this isn’t sufficient purpose for the U.S. to embrace automated operations on the ports, the large improve of transport container volumes arriving at a time with the trade’s strikes to megaships and service alliances is.

Productiveness needs to be elevated to effectively get all these transport containers onto vehicles and to their shippers. Ports have been combating congestion points, attempting to deal with the inflow cargo volumes. Automated terminals will help alleviate this downside.

That’s why shippers are most likely very glad to learn because the WSJ article continues, describing how the Port of Lengthy Seashore is bringing in automated terminal operations that may spur different ports to do the identical:

Supporters of robotic cargo dealing with are getting a brand new showcase this month with the phased-in opening of an automatic terminal on the Port of Lengthy Seashore, subsequent door to the Los Angeles port. At a price of over $1 billion to finish and the capability to deal with 3.3 million 20-foot container models—almost half of your complete port’s quantity final yr—the Orient Abroad (Worldwide) Ltd. web site is a giant guess on the longer term.

A profitable operation in Lengthy Seashore may persuade different U.S. ports to comply with, stated Mark Sisson, a senior port planner with infrastructure-development group Aecom. “The trade at a world stage is dashing laborious into this know-how,” he stated. “That pattern is barely going to go in a single route. It’s only a query of timing.”

The reliability automation can carry to U.S. ports could be a giant assist in restoring a tarnished repute that has value U.S. ports prospects and U.S. exporters worldwide contracts.

What do you assume? Is it about time the U.S. embraces automated know-how at ports?

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Supply: UC Weblog

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