Ports and shipping industry players are embarking on ambitious digitization and cargo tracking projects, enabling real-time tracking from Asian departure ports across the Pacific Ocean to delivery via truck or railcar at the final destination. Cary Davis, the newly appointed President of the American Association of Port Authorities (AAPA), emphasized the need for collaboration among supply chain stakeholders to achieve this level of transparency. While Davis supports the concept of digital platforms to track cargo, he is cautious about a one-size-fits-all approach proposed by the Federal Maritime Commission member Carl Bentzel due to concerns about privacy and data security.

The efforts to decarbonize and transition to zero-emission vehicles at ports are ongoing challenges. Davis explained that decisions to achieve decarbonization are primarily in the hands of vessel operators building ships with alternative energy powertrains, backed by significant infrastructure investment from the Biden administration. However, the transformation will be a lengthy and costly process.

The Port of Long Beach is taking a proactive stance by electrifying its operations to meet environmental regulations. Port CEO Mario Cordero highlighted the importance of transformation, indicating that while fossil fuels will still be necessary for some time, their consumption is expected to decrease annually as costs associated with carbon removal become a factor.

To address these regulatory challenges and enhance the flow of cargo, Davis stressed the need for collaborative efforts among various industry stakeholders. He highlighted the vital role of ports in the U.S. economy, with over 25% of the nation’s annual economic activity linked to ports and cargo movements. Despite fluctuations in activity due to the pandemic, port volumes remain resilient and are showing modest growth compared to pre-pandemic levels, ensuring continued economic strength.

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