Federal Maritime Commission Starting Supply Chain Innovation Project - Global Trade Magazine
  February 9th, 2016 | Written by

Federal Maritime Commission Starting Supply Chain Innovation Project

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  • FMC supply-chain project will involve stakeholders who do business at the ports of Long Beach and Los Angeles.
  • FMC project will identify solutions to problems that may interfere with the operation of the U.S. supply chain.
  • Maritime Commissioner Dye: We need to assemble a team of industry leaders who will step outside of their usual silos.

The U.S. Federal Maritime Commission has issued an order directing Commissioner Rebecca Dye to work with United States international supply chain stakeholders to form supply chain innovation teams that will develop commercial solutions to supply chain challenges and related port congestion concerns.

The project will involve stakeholders who do business at or with the San Pedro Bay ports of Long Beach and Los Angeles. Commissioner Dye was also directed to identify potential commercial solutions to certain unresolved problems that may interfere in the future with the reliable operation of the U.S. supply chain.

Dye will be addressing the engagement project in greater detail at the commission’s next public meeting on February 18th.

Dye’s supply chain engagement project is separate from the competition analysis being conducted by the FMC’s Bureau of Trade Analysis of the ports’ PierPASS off-peak gates program.

“Commissioner Dye has been designated to undertake a broader effort to address congestion-related bottlenecks and other supply chain efficiency issues,” said FMC chair Mario Cordero. “In effect, her work will be the next significant step in the commission’s efforts to encourage collaborative, innovative supply chain integration efforts that we initiated through our regional port forums.”

Many industry representatives agree on the fundamental importance of establishing regional, high-level supply chain teams to cope with increasingly complex international transportation problems, according to Dye. “Their message is clear,” she said. “We need to assemble a committed team of industry leaders who, by stepping outside of their usual silos, will identify commercial solutions that enhance supply chain effectiveness, reliability, and resilience.”

Dye stressed that the FMC is not proposing regulatory solutions, but rather is seeking to assemble working teams of industry leaders to develop commercial innovations that would support adaptive and resilient supply chain systems. “I recently visited both San Pedro ports,” Dye added, “and had a chance to see the fine work undertaken by the port directors as part of their supply chain optimization groups. They’ve made an excellent start, and I expect their efforts will continue to bear fruit. Our supply chain team project is intended to complement, not interfere with, the progress being made at the two ports.”

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