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Sourcing Journal

January 4, 2023

By Kari Hamanaka

Shipper criticism of ocean and rail carriers’ unreliable service reached a fever pitch during the height of the pandemic amid skyrocketing rates. 2022 saw the signing of the Ocean Shipping Reform Act (OSRA), a major overhaul to the regulations governing container shipping, and probes into rail service by the Surface Transportation Board.

Time will tell whether government intervention spells relief in the long-term, but one constant in any forecast for logistics: change is all but certain.

“Great providers and transportation providers that have a national footprint are going to be more of the norm and something the BCOs [beneficial cargo owners] want to make sure that they have in their transportation provider portfolio because we could sit here and talk about what we’re forecasting into 2023 and 2024 and the next year, but there’s always something that could happen,” said Paul Brashier, vice president of drayage and intermodal at third-party logistics company ITS Logistics. “So, my hope coming out of this year and going into next is that BCOs and shippers really start gravitating towards more service providers that have a nationwide footprint. It gives them that flexibility and malleability to help them navigate anything.”

Read the full article here.