Container volume rebounds reveal promising signs of resilience despite the ongoing battle with COVID-19 impacts. Although many countries are experiencing a gradual increase in demand as it makes up for the losses at the beginning of 2020, trades in all continents are yet to recover fully.

Many anticipated a better start to the year; however, the aggressive virus resurgence in nations have enforced state-wide lockdowns throughout the holidays. Not only does this detriment the local economy, but it also generates grave repercussions for the global supply chain. Exports and imports cannot move as intended, disrupting container flow as mutating strains of the virus impose restrictions on movement and travel. As a result, the carrying on effects of 2020 has crept into the new year. Few challenges to see in the upcoming months:

WORKING IN A SOCIALLY DISTANCED WORLD

Unfortunately, 2021 has not been able to escape the virus’s grasp as its rapid speed of mutation has proved to be incredibly challenging to navigate working environments. Last year, the world leveraged the internet collaborative and communicating tools to continue the business. This new way of working in a socially distanced world will most likely stick this year forward too. Ports and terminals will increasingly choose cloud technology, while container handling equipment will integrate automation technology. Although these approaches are progressive and opportunistic, the areas of concern spawn when standards omit clearly defined conduct. As a result, working in a socially distanced world will counterintuitively push business backward rather than forwards.

Already automated operations executed with automatic equipment were able to continue as it was pre-pandemic. However, given the nature of industry sectors such as seafarers and ports transporting goods persevered and continued essential work. They confronted a dilemma that established a trade-off between maintaining resources and digitalizing (project development). Substantial financial resources were exhausted to compensate for the cargo volume losses at the pandemic’s initial stages, forcing operators to conserve resources to remain operational and active. Consequently, operators faced a dilemma of choosing between investing in port development and digitalization or sustaining business.

Industries have endured enough to gauge the requirements necessary for moving forward and have somewhat understood the risks associated with whichever strategies they decide to adopt. Depending on the current system – legacy or agile, transitioning into a digital landscape could conjure challenges throughout or even after installation, or it can be seamless, respectively. Therefore, project development may be outside the scope of near-future plans, but it is crucial to institute incremental and proactive steps that facilitate heightened communication and innovation.

MASTERING NEW TECHNOLOGY

The global crisis exposed the flaws deep within current systems, which helped cultivate better operating ways and expedite the digital economy. It has offered technological experts the opportunity to develop a specially curated product to tackle new problems existing today. However, fear for new technology and innovations emerges due to humans’ natural aversion to uncertainty.

Through trials and few testimonials, businesses tend to engage and muster the courage to adopt the new technology. Another hurdle arises from the amount of time invested in training personnel to master the product. The broader scope that the software product covers, the more training it will require – which terminal operators must factor while running their business simultaneously. This challenge only magnifies if performance is a priority and there is an insufficient number of employees to allow divided focus. It can also be an issue if management cannot afford to take tasks off their hands to undergo training. Despite the time invested to familiarize with the newly implemented products, it will prove worthwhile and crucial to securing the competitive advantage to advance in the digital economy.

GLOBALIZATION NO MORE?

The lessons learned from 2020 have been nothing short of dire as the crisis ultimately overthrew standard models and conventional practices. Globalization used to be a principal goal shared amongst terminals worldwide to strengthen the global supply chain. However, the pandemic rendered delayed shipments, port congestion, unemployment, and endless predicaments, which generated inefficiencies, indicating trade localization as a safer alternative.

Reducing overseas reliance and opting for regional trade spares ports from enforcing a mandatory two-week quarantine – a significant factor impacting the timeframe a shipment leaves the supplier and reaches the customer. It also boosts the local economy as it centralizes on creating more jobs within the country, inherently improving delivery speed and overall customer satisfaction. Nations intending to reduce their reliance to keep pace may need restructuring to alleviate the global supply chain disruption’s financial duress.

Although returning to the former hyper-globalized trade system is unlikely, ports less digitalized and dependent on offshore products will encounter few trade localization issues. They will need to reassess their global ties and determine the areas requiring a restructure to ensure it can adapt to post-pandemic conditions that favor their business performance.  Fine-tuning a new model to meet business requirements may also be a task. It will still facilitate operators to navigate unchartered territories to understand the latest maritime and container industry’s foundations.