New committee works to strengthen U.S. supply chains

As if 2024 didn’t bring enough surprises to global shipping, the CrowdStrike software vulnerability that caused Microsoft’s operating system to crash has once again sent shockwaves through the system. The air cargo system has borne the brunt of the worst IT outage in history, while ports around the world have also been affected. The silver lining is that unrest often leads to action, and unions, ocean carriers and ancillary supply chain businesses are banding together to form a new trade group that will push for investment in domestic infrastructure to protect the supply chain.

Also read: Top 25 container ports in the United States

The Supply Chain Council is led by real estate development and public affairs executive Josh Wood, and its goal is to “develop and advance best practices and public policy at the federal, state and local levels.” Its board is chaired by a representative of logistics real estate company Prologis and includes the Laborers’ International Union of North America, which represents 70,000 public employees in the energy and construction industries, the Pacific Merchant Shipping Association, which advocates for marine terminal operators and stakeholders doing business at West Coast ports, and numerous private law, real estate companies and labor-management associations.

While many companies have independently restructured and rethought operations following post-pandemic supply chain disruptions, the committee noted that progress has been slow from a policy perspective. The group believes that current policies are too narrow, targeting specific areas such as ports or trucking, rather than taking an all-encompassing view that recognizes the interconnectedness of the broader supply chain.

The committee’s short-term focus is on advocating for cost-effective, technologically feasible, enforceable environmental regulations, and responsible development of commercial facilities critical to the supply chain. In the long term, increasing government investment in public transportation infrastructure, working to eliminate preventable slowdowns and disruptions, and better preparing for future natural disasters will dominate its agenda.

The United States faces real challenges with crumbling infrastructure, and bipartisan legislation may be needed to advance rebuilding efforts and new infrastructure. The Commission correctly notes that labor and business share a common goal—a strong economy. More resilient supply chains coupled with needed investments will benefit all stakeholders up and down the supply chain.