TAKEAWAYS Shaping the Future of the Global Supply Chain
Digitalization of the container shipping industry is gaining ground—and that’s a good thing, according to the Digital Container Shipping Association’s State of the Industry Report 2024 . The report reveals that stakeholders from across the container shipping sector perceive clear benefits of digitalization. For instance, 86% of cargo owners see digitization as a tool for operational efficiency while ports and terminals highlight its value in enabling scalability. Banks, meanwhile, highlight the potential for risk reduction. The container shipping industry still has a way to go on the path to digitalization, however. Outdated infrastructure, a lack of proactive investments, and resistance are among the challenges to digitalization. Additionally, respondents indicate that digital standards will be key to enabling seamless operations. GETTING TO DIGITAL
SLOW WAREHOUSE = SPEEDING TRUCK DRIVERS? Next time a truck speeds by you on the highway, consider that the driver may be trying to make up for lost time after being detained at a warehouse or distribution center. That’s one hot take from the American Transportation Research Institute (ATRI)’s recent report that quantifies the productivity and safety consequences of truck driver detention at customer facilities. Detained trucks drove 14.6% faster on average than their undetained counterparts , indicating a troubling correlation between detention and unsafe driving practices, finds ATRI. The research quantifies the direct costs for fleets, truck drivers, and supply chains in general. It also corroborates previous research that found detained trucks drive faster both after and before a detained trip occurs. Here are some other key data points from the report: • Drivers reported being detained at 39.3% of all stops in 2023 . The frequency of detention was even higher among women drivers (49.1%), refrigerated trailer drivers (56.2%), and among fleets that operate in the spot market (42.5%).
STAKEHOLDER GROUP
CURRENT TOP DRIVERS FOR DIGITALIZATION
CURRENT TOP BARRIERS TO DIGITALIZATION
CARGO OWNERS
• Lack of visibility into supply chain • Technological limitations
• Is a tool for improving operational efficiency • Provides better real-time tracking and visibility
OCEAN CARRIERS
• Job security concerns • System complexity
• Improves customer satisfaction • Enables competitive differentiation
FREIGHT FORWARDERS
• Technical issues—integration with legacy systems • Insufficient investment
• Supports enhanced communication and
•
Truck drivers were detained between 117 and 209 hours per year , depending on the sector. In for-hire trucking alone, the total time lost to truck driver detention exceeded 135 million hours in 2023. While 94.5% of fleets charge detention fees, they are paid for in fewer than 50% of those invoices. As a result, t he trucking industry lost $3.6 billion in direct expenses and $11.5 billion in lost productivity from driver detention.
operational efficiency through a shift toward real-time data
•
PORTS & TERMINALS
• Job security concerns • Pushback from unions
• Enables scalability • Eliminates manual processing and human interaction through data integration
Source: Digital Container Shipping Association
16 Inbound Logistics • October 2024
Powered by FlippingBook