In this critical analysis, the focus is on the nation's maritime port operations and international mode of transportation for Fixing America's Surface Transportation (FAST) Act of 2015 surrounding port distribution and logistics. The FAST Act requires the Bureau of Transportation and Statistics to report statistical data highlighting the challenges in global product distribution within infrastructure and value-added systems in logistics and supply chain management. The transportation costs estimate costs accounted for approximately 50% of the total logistics costs for businesses. Furthermore, fluctuations in fuel prices and increased demands for e-commerce shipping further emphasized the significance of cost challenges in global distribution. These disruptions underscored the complexity of managing a global network of suppliers, distributors, and customers. In this study, the researchers analyze 76% of companies still struggling with forecasting accuracy along with ongoing challenges in inventory management due to fluctuating consumer demand.
TopIntroduction
The United States is one of the world’s largest global markets with nearly $6 trillion in exports and imports of goods and services (BLS, 2022; USDOT, 2022). Recent growth in the United States international trade and transportation continued at a phenomenal pace following the shift in consumer spending due to the COVID-19 pandemic (Lee & Song, 2017; BLS, 2022; USDOT, 2022). The nation’s ports have been burdened by workforce, equipment shortages, and container vessel backups. These challenges have created monumental domestic and global-supply chain disruptions (Loh et al., 2017; Inkinen, Helminen, & Saarikoski, 2019; Agrawal, Narain, & Ullah, 2019; BLS, 2022; USDOT, 2022). However, there has been several altered landscapes within the logistics and supply chain management industry that have major implications as ports handle unprecedented amounts of cargo (Agrawal, Narain, & Ullah, 2019; BLS, 2022; USDOT, 2022). According to BLS (2022; USDOT, 2022), total trade in goods amounted to more than $4.6 trillion (77 percent) in 2021. Moreover, statistics show an increase year after year of $835 billion annually amounting to 22 percent (BLS, 2022; USDOT, 2022). Additionally, US imports of goods growing by almost $506 billion (22 percent) while exporting of goods increased by more than $329 billion (23 percent) between 2020 and 2021 (BLS, 2022; USDOT, 2022; WEF, 2023). US and international trade modes for distribution of goods has moved by 41% percent in trade value in international markets (BLS, 2022; USDOT, 2022). In Figure 1 below it demonstrates the two-thirds of containerized freight still needing to go through the appropriate distribution channels (Perego, Perotti, & Mangiaracina, 2011). See Figure 1. Number of Containerized Freight-Cranes at the Top 25 Container Ports in FY2020.
Figure 1. Number of containerized freight-cranes at the top 25 container ports in FY2020 (BLS, 2022; USDOT, 2022)