Navigating Labor, Automation, and Policy with Jim Newsome

In this episode of Kev Talks: Real World Global Logistics, hosts Kevin Higgins and Kevin Parkerson sit down with Jim Newsome, former CEO of the South Carolina Port Authority. Drawing from decades of experience, Jim offers a candid and insightful perspective on U.S. port operations, automation, global competitiveness, and the broader maritime landscape. With an eye toward the future, he provides actionable recommendations for policymakers, Beneficial Cargo Owners (BCOs), and industry leaders navigating the complexities of the global supply chain.

Highlights:

Automation Realities and Challenges:

• Jim discusses why automation is not a universal solution, highlighting the high costs (40% more than non-automated terminals) and trade-offs in productivity and flexibility.
• Semi-automation dominates in the U.S., with only five partially automated terminals accounting for less than 10% of container volume.

Labor and Union Dynamics:

• A deep dive into the International Longshoremen's Association's (ILA) strategic leverage, including their unified approach to negotiations and the structured review of automation under Article 9.
• Workforce expansion efforts, with significant growth in ILA man-hours and active hiring to meet demand.

Global Competitiveness of U.S. Ports:

• U.S. ports like Charleston and Savannah excel globally, balancing skilled labor with higher wages.
• Jim underscores reliability and adaptability over automation for BCOs seeking supply chain stability.

Policy and Economic Growth:

• Jim advocates for fair trade policies and reducing tariffs that create inflation and stifle export growth.
• He emphasizes the importance of exports in addressing the U.S.’s growing deficit and fostering economic growth.

Future Trends in Maritime Logistics:

• The industry’s shift from 24,000 TEU vessels to mid-sized ships (13,000–16,000 TEU) for efficiency.
• The urgent need to address the "fuel of the future" amid growing concerns about sustainability and operational costs.
• Visibility as a key driver of supply chain efficiency, with cutting-edge solutions capable of transforming cargo tracking and perception of reliability.

Industry Challenges and Opportunities:

• Jim predicts concentrated negotiations as union contracts approach expiration and emphasizes the need for proactive disruption planning.
• He envisions enhanced trade visibility and collaboration as critical to dispelling misconceptions about the reliability of the global supply chain.

Tune in for a thought-provoking discussion covering the intersections of policy, technology, and strategy in shaping the future of global logistics. Jim’s insights are a masterclass in balancing competitiveness, innovation, and practicality in a rapidly evolving industry.