The Biden administration is addressing supply chain data gaps on land and at sea, with one campaign led by the Federal Maritime Commission and the other by the United States Department of Transportation.
Can a supply chain data portal succeed with the federal government participating, considering the quantity of sensitive information that already moves throughout freight markets?
“Certainly, the government has a big role to play in making sure a supply chain data exchange works, and to promote improved data sharing,” Ellen Sun, chief marketing officer for the Digital Container Shipping Association (DCSA), told FreightWaves.
“However, the industry does not want to be regulated in order to be obliged to provide data.” I’m sure there’s also a lot of concern about who owns the data and who will commercialize it. So the next stage is to figure out exactly how it will operate.”
According to William Fox, chief product officer of Data Gumbo, which specializes in “smart contracts” based on blockchain technology, a framework of open standards developed by government and business “could undoubtedly help to define a least-common-denominator.” As an example, he cited TradeLens, a blockchain-enabled shipping platform built by Maersk and IBM.
A portal or exchange housed or maintained by the government, on the other hand, “will not work owing to government IT systems sclerosis,” Fox added.
The FMC started holding weekly meetings in December with shippers, maritime carriers, marine terminals, labor, and others to identify data communication gaps throughout container supply chains with the goal of enhancing cargo flow and minimizing future supply chain interruptions.
FMC Commissioner Carl Bentzel, who has been heading the meetings, has sought out data “wish lists” that the industry wants to be able to obtain rapidly via a single platform so that all parties have access to the same container location information in real-time.
FedEx, for example, informed the FMC in one discussion that data like container stow plans, docking and berthing schedules, and longshore staff scheduling should all be synchronized and made available through a unified data interchange.
Bentzel intends to use the information gathered from the meetings to develop recommendations for common data standards, policies, and protocols to streamline information sharing across the international ocean supply chain — as well as to recommend what role, if any, the agency will play in a potential clearinghouse for such information.
Last week, the Department of Transportation (DOT) announced its own data-sharing program, the Freight Logistics Optimization Works, or FLOW, which would focus on the domestic supply chain. It will begin with a pilot project including 18 parties, including shippers, trucking firms, warehousing businesses, logistics companies, and ports, with a “proof of concept freight information exchange” due by the end of the summer.
As with the FMC, it is unclear what function the DOT will have in a shared freight data system.
DCSA, a charity supported by nine of the top ten container ship operators, has been involved in conversations with both the FMC and the DOT to provide the framework for a future freight gateway, such as defining digital standards and terminologies.
“I think the DOT’s mandate is bigger than marine — they’re trying to look at the end-to-end supply chain, and there are a lot of inland links in the United States,” Sun added. “However, these projects are not in competition with one another. “I believe they will be complementary in the end.”
And, while the government’s involvement may not be required to get a freight data exchange off the ground, “it comes down to speed,” she argued.
“Because this is such a fragmented market, convincing a critical mass of stakeholders to sign on is tough.” We can work with our members to adopt a specific standard, but there are only nine ocean carriers. When you consider the number of ports, shippers, trucks, and rail lines involved, it’s a massive job. So the government can help speed things forward by informing everyone that this should be the gold standard.”
