Today, I want to talk about something that's incredibly vital to our economic future: the state of U.S. shipping and how we can amp it up to compete with China. Now, I know what you might be thinking: "Shipping? Really? That sounds kinda boring." Trust me, this is a topic that's way more exciting than it sounds, especially when you realize how crucial it is for our nation's prosperity.
So why am I so excited about shipping. As for the reason why… Well, it’s not complicated. In today's globalized world, how efficiently we move goods around directly impacts our economy, our competitiveness, and even the prices we pay for everyday stuff. But sadly, at this moment in time, the U.S. is falling behind.
Think of it this way: imagine two runners in a race. One of them has cutting edge shoes, track, and a squad of coaches deconstructing each step. The other is that you’re running shod along a well-maintained gravel road without a support vehicle. So, who are you picking to take home the win? That's essentially the difference between China's shipping infrastructure and ours.
I have vivid memories of riding through Shanghai a few years ago. The scale and efficiency of their ports was mind-boggling. From the cranes moving containers with balletic precision to the trucks scurrying like worker bees, even just the sheer efficiency of everything was mesmerizing. Meanwhile, back home, I've seen ships stuck in port for days, waiting for their turn to unload, a true testament to the inefficiencies plaguing our system.
And the numbers don’t lie. In fact, the American Society of Civil Engineers, our port infrastructure receives a dismal B-minus. China’s share of global throughput has been increasing, and ours decreasing, at a consistent and alarming rate. Their Logistics Connectivity Score – an overall measure of infrastructure connectivity – is massively higher than ours, showing their massive efficiency and competition advantage.
I'm not writing this to spread gloom and doom. I’m more specifically, almost dangerously optimistic because I think we can do something about it and we have the ability to positively transform our world. All it requires is a simple, focused decision to put our codify that investment into our technology and infrastructure.
Well… how are we doing that? To start, we have to adopt technology. Imagine smart ports—equipped with AI-powered logistics, automated cranes, and real-time tracking systems. Well, this isn’t as far off as you think. It’s already taking place in other parts of the world, and we need to get up to speed!
In my dream future, drones surveil port activity, self-driving trucks move goods, and blockchain technology speeds up the documentation of it all. Sounds like the premise of a sci-fi film? Maybe. But it’s the secret to a truly historic level of efficiency and cutting those maddening delays once and for all.
Tackle our second challenge head-on, starting with our dangerous physical infrastructure. Our ports are crumbling, our highways are gridlocked, our rail infrastructure is overdue for a major renovation. So we need to get serious about investing in modernizing these systems to help them accommodate the growing tide of goods pouring into and out of our country.
One key area that I believe has the potential to be a real game-changer are public-private partnerships. Collaborations like these allow communities to leverage private sector expertise and cutting-edge technologies. They represent a crucial source of capital to help accelerate project delivery and improve the state of our infrastructure.
Think about it: private companies are often more efficient and nimble than government agencies. Partnering with them enables us to share risks and leverage new funding silos. It improves the likelihood that we deliver projects on-time, on-budget.
I thought back to an article I had read about a successful public-private partnership down under that turned a failing Aussie port into an efficient world-class facility. Under the management of a private company, the port flourished. It integrated advanced technology, increased productivity, and transformed the port into an eight billion dollar economic engine. That success is the type of success we should be able to replicate right now, today, here in the U.S.
Yet it’s more than just hardware and technology. We can’t just focus on infrastructure. We need to invest in our workforce too. Finally, the shipping industry is changing incredibly fast. We need to equip our workforce to meet these emergent technologies and challenges head on.
I’m speaking about the necessity to build apprenticeship programs, vocational schools, on the job training allowing people to come into these new jobs. And let’s do a better job of equipping our workers with the skills they need to thrive in the modern shipping industry.
All of this may sound like a massive lift – and it is! However the upside is huge. Expanded shipping capacity helps lower shipping costs, which translate into lower import prices and lower inflation overall. Beyond avoiding the harms, it can improve the competitiveness of U.S. businesses, making them more attractive to global customers and investors.
Don’t even get us started on job creation and economic growth. A successful shipping industry literally spins off millions of impactful jobs, for everyone from dockworkers and truck drivers to software innovators and engineers. And importantly, passenger rail can spark economic growth in the communities around stations, creating a wave of opportunity that radiates outward.
Global maritime trade is expected to triple over the next 20 years. I am convinced that the U.S. can and must play a leading role in this growth. When we invest in our technology and infrastructure, that makes us more efficient and drives down costs. This makes us a more attractive market for international commerce.
Even I’m not claiming that it will be simple. It won’t be easy and there are challenges and roadblocks to come. But I know that we have the ingenuity, the resources, and the determination to overcome these challenges.
It’s high time that we stop looking at China’s shipping strength from the outside in and begin developing our own. Let’s double down on the promise of our technology, modernize our infrastructure, and invest in our people. Together, let’s chart a course to success and retake our place as a global shipping leader.
Well… So what do you all think? Looking to take a more active role in helping build a stronger, more competitive U.S. shipping industry? So let’s do it and get these dollars flowing! The future of our economic prosperity rests on it!
