TAKEAWAYS Shaping the Future of the Global Supply Chain
OVERHEARD
WHAT’S DRIVING SC INNOVATION?
As companies continue to persevere through today’s complex supply chain operating environment, innovation plays a starring role. New innovations and technologies are key to helping companies thrive in the face of persistent economic and workforce pressures. Taking a deep dive into what’s fueling the quest for innovation, Kenco’s 2026 Innovation Report shows that inflation rises to the top. Nearly half of respondents (45%) cite inflation as their primary innovation driver, followed by labor shortages (28%), and sustainability priorities (27%). At the same time, organizations face significant hurdles in turning new ideas into reality. The report cites cost constraints (51%), workforce challenges (45%), and technology integration issues (29%) as the biggest barriers to innovation progress, underscoring the complexity of implementing new tools across existing operations. Despite financial constraints, companies are still devoting resources to innovation, with 35% of respondents even reporting increased innovation budgets. Nearly half of respondents cite a budget of at least $500,000, up from 40% the year prior. ( See chart below .) Which innovations generate the most buzz? The Kenco data shows the top supply chain innovations being added in 2026 are AI & machine learning (27%), computer vision (23%), supply chain digitization (18%), and generative AI (17%). The survey also reveals internal friction around innovation initiatives. Operations is cited as the most dicult department to collaborate with (40%), followed by IT (33%) and HR (23%), highlighting the organizational alignment challenges that often accompany transformation eorts.
“Two-person train crews, stronger and more frequent inspections, tougher penalties, and improved hazardous materials notification are essential to protecting railroad workers and the public. These reforms will happen only if Congress passes the Railway Safety Act of 2026.” —Mark Wallace National President, Brotherhood of Locomotive Engineers & Trainmen, on the introduction in Congress of new bipartisan legislation aimed at increasing rail safety.
PORTS BEST STORMY SEAS North American port activity reached a new high in 2025, but not without fighting through one of the most volatile years in recent memory. Container volumes rose 1.6% to 62.3 million TEUs across the top 15 ports last year, surpassing the 2022 peak and setting a record, according to the Savills Ports Report , presented by Savills Industrial Services. The dramatic year included shippers front-loading cargo ahead of shifting tari deadlines, then endured sharply falling volumes when a 145% stacked tari on China in April 2025 eectively curtailed trade, before rebounding once that tari was lifted. Savills import volatility index reached 8.1% from May through July, double the 10-year average and a level last seen in 2020. Additional trends include: Continued dominance from Asia-Pacific hubs, where the five largest ports account for more than one-third of global container throughput. 11 of the 15 major ports posted year-over-year gains. Baltimore saw the largest percentage increase as it recovered from its 2024 bridge collapse, while the Port of Virginia experienced the steepest decline in volume. Rising strategic investment in port infrastructure worldwide, with upgrades aimed at improving capacity, resilience, and eciency. Ports remained relatively stable with no major labor strikes and improved hiring conditions, though future immigration policy may tighten the labor pool again. Looking ahead for the remainder of 2026, the report forecasts that port activity will flatten or ease slightly as the eects of tari front-loading fade and more sophisticated inventory analytics help smooth out import cycles.
Despite Caution, Budget Growth Continues Even with financial strain, most companies still find room in the budget for innovation, though they’re more cautious than they were heading into 2025.
While budget fluctuations exist, nearly half of companies surveyed report having larger innovation budgets than in 2025.
83%
have dedicated 2026 innovation budgets
35%
49%
20%
have a budget of at least $500K, up from 40% the year prior
saw budget increases (down from 39% last year)
saw budget increases (up from 12% last year)
Source: Kenco
14 Inbound Logistics • March 2026
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