The increasingly important role of shipping ports worldwide – especially during the COVID-19 pandemic – is a hot topic in the shipping and logistics industry. Many factors influence seaports’ efficiency and smooth operation, such as current market demand, empty container availability and other supply chain disruptions.
Some of the busiest seaports are becoming increasingly congested, making it challenging for importers to receive freight on time. Many shipping companies are looking for alternative methods of transporting cargo, whether it’s using aviation carriers, railcars or sending maritime vessels to ports in other locations.
Many ports are now reporting a significant increase in shipping container buildup and are looking for innovative solutions. Artificial intelligence (AI) may help alleviate these congestion issues and help the industry operate more efficiently.
Understanding the Buildup of Shipping Containers at Major Ports
Two of the nation’s busiest ports on the West Coast – the Port of Los Angeles and the Port of Long Beach – handle around 40% of incoming cargo shipped to the United States. As a result, achieving operational efficiency is a top priority for these ports.
It’s well-known that delays and disruptions create a domino effect in the industry, causing slowdowns and negative impacts on other supply chain members. Additionally, ports are facing issues with the workforce, specifically in terms of finding enough dockworkers and settling contract negotiations to avoid worker strikes.
The number of processed shipping containers is decreasing, causing a significant spike in the amount of time idle containers stay in place, otherwise known as increased “dwell time”.
Another issue causing chaos at ports is that workers are finding it challenging to book dual transactions. These transactions involve workers delivering a full container to a port and picking up another on the same trip.
As demand continues to increase, some organizations are now charging fees due to port congestion. For example, Active Minerals International, LLC announced a temporary $300 per container surcharge on exported products. The goal of the fee is to help protect consumer supply chains and ensure customer delivery expectations are met.
How AI Might Help Ease Container Buildup
Because there are several contributing factors causing massive buildup at the nation’s ports, it’s critical for shipping companies and other professionals in the industry to find viable solutions. The 2022 holiday season is just around the corner, meaning peak season could be a nightmare if these issues are not at least somewhat resolved.
One potential solution to the lack of staff and equipment at ports is AI. According to co-founder & CTO of Orca AI, Dor Raviv, AI can facilitate increased automation at ports with the ultimate goal of improving operational efficiency.
Ships can also incorporate AI onboard to gain better visuals and traffic updates, allowing them to make more informed decisions regarding travel times and route planning. AI also helps foster better communication between fleets and ports. Sensors can provide real-time data to ships at sea and port workers on land, ensuring that no vessel is functioning in isolation.
Here are some other ways AI can help reduce shipping container buildup:
- Prioritizes which containers should be processed first
- Allows for container-to-driver matching using predictive analytics
- Maximizes the time trucks have at a port
- Supports dual transactions and ensures no driver leaves with a bare chassis
The final point is also beneficial for the environment. The shipping industry is focusing on reducing its carbon footprint and leveraging new technologies to achieve this goal. For example, shipping companies sometimes invest in scrubbers to remove toxic elements from the air, maintaining good outdoor air quality in the surrounding areas of ports.
Anyone in the shipping industry knows the goal is to create a more synchronized cargo flow management system to benefit the entire maritime shipping community.
Leveraging AI to Overcome Industry Challenges
AI will likely play a more critical role as the issues of port congestion and a lack of efficiency continue to cripple the global supply chain. If more companies within the industry invest in AI-based solutions, port congestion, worker shortages and poor efficiency could vastly improve to support the increasingly globalized economy.
