Categories: Blog

OCTOBER 2024

October 2024

WHATS NEW?!

Good Morning, Good Evening, and Goodnight,

Welcome back to another market update, in this journal I’m going to talk about the supply chain events in a retrospect of this month. October’s journal will be focused the port strike and how it impacts us. The sole purpose for me to do this is to spark a conversation with you in the future and maybe gain perspective of your thoughts and strategies.

“Money doesn’t grow on trees, but it sure does fall from ATMs.”

In this journal I’m going to Daiiv into supply chain updates, market insights, and more into innovations. This is the tenth journal for 2024, and I’m excited to share that all my journals are published on my personal website: Daiviksuresh.com

A direct link to all my journals is here: CLICK ME!

Warning: Market talk ahead. This is not financial advice; most investments carry a risk of losing some or all of the invested capital.

East Coast Port Strike

The recent East Coast port strike, the first since 1977, halted operations at 14 major ports, impacting approximately 25,000 International Longshoremen’s Association (ILA) workers. The ILA, a significant labor union representing dockworkers, was at the center of the dispute.

After a three-day standoff, the strike was resolved with a substantial pay increase for ILA members, raising hourly wages from $39 to $64. However, the agreement is temporary, with negotiations scheduled to resume in early January 2025 to address long-term issues, particularly concerning automation.

List of Ports include:Baltimore, Boston, Charleston, Jacksonville, Miami, Houston, Mobile, New Orleans, New York/New Jersey, Norfolk, Philadelphia, Savannah, Tampa, Wilmington

Why did it happen? What is next?

A potential strike could cripple the economy, costing up to a billion dollars per day. While West Coast ports might temporarily absorb some cargo, the strain would quickly become unsustainable. Automation poses a significant threat to the workforce, as it continues to replace manual labor in various sectors.

Automated Gate Systems: These systems process trucks entering and leaving ports without manual intervention.

Automated Cranes and Vehicles: Used to move containers within the port, reducing the need for manual handling.

Smart Port Technologies: Leveraging data analytics, IoT sensors, and connectivity to optimize operations and enhance efficiency.

The COVID-19 pandemic highlighted the importance of resilient supply chains. Ports will need to invest in infrastructure and digital technologies to improve efficiency and reduce disruptions. While the potential for future port strikes cannot be entirely eliminated, the long-term outlook for the industry is one of adaptation and innovation.

The Evolution of ports.

Port 1.0: The Era of Manual Labor

In the early days of port operations, Port 1.0, human labor was the primary driver. Workers manually handled cargo, from loading and unloading ships to transporting it within the port. This era was characterized by low efficiency and high labor costs.

Port 2.0: The Process-Driven Era

With advancements in technology, Port 2.0 emerged. This era introduced standardized processes and centralized control systems. While automation began to play a role, human operators were still heavily involved in decision-making and oversight. This approach improved efficiency but was still limited by human error and the need for constant monitoring.

Port 3.0: The Age of Automation

Represents a significant leap forward. Automation took center stage, with advanced technologies like robotic cranes and automated guided vehicles (AGVs) replacing human labor in many tasks. This era focused on optimizing individual processes within the port, such as container handling and storage. While automation reduced labor costs and improved efficiency, it also required substantial investments in technology and infrastructure.

Port 4.0: The Era of Digital Orchestration

Where digital technologies will revolutionize the entire port ecosystem. In this era, ports will evolve from mere asset operators to service orchestrators, connecting all stakeholders, including shippers, carriers, and logistics providers. By leveraging data analytics, artificial intelligence, and the Internet of Things (IoT), ports will optimize the flow of goods, reduce congestion, and improve overall efficiency.

It’s a complex issue with significant implications for both workers and the shipping industry. Do you think automation is inevitable, or should there be more protections for workers?

If you would like to contact me, please navigate through my website, and find the best way to connect!

Sources

Written By:

-DAIVIK SURESH-

Daivik Suresh