Photo: Courtesy of the Port of Los Angeles

FMC to focus on data sharing for more efficient maritime supply chain

Identifying data constraints that impede the flow of ocean cargo and add to supply chain inefficiencies will be the focus of a new effort by the US Federal Maritime Commission (FMC).

As explained, this effort will be critical to pinpointing how data can contribute to the long-term reliability of the domestic cargo delivery system.

FMC
Photo courtesy of the Port of Los Angeles

This initiative will propose recommendations for common data standards used by the international shipping supply chain, as well as access policies and protocols that would streamline information sharing across the ocean supply chain.

This multi-phase effort is being launched at the direction of FMC Chairman Daniel B. Maffei with initial findings to be presented at a Maritime Data Summit in Spring 2022.

“Events of the past year have proven the need for the United States to achieve more capacity from our cargo delivery system. Information sharing and additional transparency in how containers move is one way we can move more containers more efficiently,” FMC Chairman Maffei said.

Over the course of the project Commissioner Bentzel will conduct research, interviews, round tables, and hold public meetings to inform the “status quo” in maritime data. He will explore what common ocean shipping data is created with each hand-off of a container through the supply chain, how that data is stored and shared, and identify what are the critical data elements used by each supply chain party.

Ocean carriers, marine terminal operators, truckers, railroads, and other government agencies are among those who will be invited to provide insight about data definitions, classification, and recommendations for improving interoperability of data records involving container shipping. Input from the Commission’s National Shipper Advisory Committee may also be solicited as part of the project.

Initial deliverables will include a data inventory and recommendations for common standards. The first public meeting Commissioner Bentzel will hold is scheduled to take place next month in Washington, D.C. While the agenda for the meeting is still being set, planned speakers will include representatives from the Biden Administration, data experts, standards setting specialists, and representatives from FMC’s National Shippers Advisory Committee.

“When you go through a U.S. airport you know how and where to park your car, you know that you will be transported to the airport terminal, when you get to the terminal you will be provided information on your gate and information about when your plane will depart and land, adequate personnel are available to handle luggage and run it through security throughout this process, and it is repeated at landing. The maritime industry does not have a similar system in place,” Commissioner Bentzel said.

“Given the immense national economic impact and our Nation’s reliance on ocean shipping, sustained surges in cargo volumes and other operational impacts caused by COVID-19, it is clear to me that we need to develop a stronger system of information for the shipping public.”

“The FMC will work with the industry to develop greater systems of transparency for services surrounding the international intermodal transportation of goods. Our port gateway corridors are limited by physical constraints and the best options for efficiencies lie with the greater utilization of information technologies and coordination between the different modes in the supply chain.”

The project is the latest effort by the Federal Maritime Commission to address supply chain efficiency and congestion issues. Other initiatives include Fact Finding 29, the Vessel-Operating Common Carrier (VOCC) Audit Program, investigating certain ocean carrier fees and surcharges, issuing a Notice of Inquiry into the use of merchant clauses in VOCCs’ bills of lading to require payment from entities that are not in contractual privity with the VOCC.

Despite the global coronavirus pandemic and decayed infrastructure, America is moving record numbers of goods from its ports to final destinations.

Last week, the US government introduced the Bipartisan Infrastructure Deal to make fundamental changes to ensure that supply chains are more resilient and efficient from future shocks. The plan will strengthen supply chains by investing almost $50 billion in US ports and airports on top of expanding existing programs that support freight investment across modes.

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On 15 November, US President Joe Biden signed the $1 trillion infrastructure bill into law.

“The bipartisan law will modernize our ports, our airports, our freight rail to make it easier for companies to get goods to market; reduce supply chain bottlenecks, as we’re experiencing now; and lower cost for you and your family,” Biden stressed at the signing ceremony.