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Freight Logistics Optimization Works (FLOW) is a freight information exchange initiative designed to improve overall flow of goods
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US President Joe Biden’s administration tapped key stakeholders, port directors and supply chain business leaders to launch the new initiative
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The Department of Transportation will bring stakeholders together initially to produce a proof-of-concept freight information exchange by the end of summer
US President Joe Biden’s administration has launched a major supply chain initiative, Freight Logistics Optimization Works (FLOW), to help speed up delivery times and reduce costs for American consumers.
The initiative announced on March 15 by the White House, Vice President Kamala Harris, and the US Department of Transportation involves trucking companies, ports, retailers and major ocean carriers sharing data with one another.
Fact Sheet: Freight Logistics Optimization Works (FLOW)
Director of the National Economic Council Brian Deese and Secretary of Transportation Pete Buttigieg met with key stakeholders, port directors and business leaders in the country’s goods movement supply chain to launch the initiative.
DOT will act as “an honest broker and convener to bring supply chain stakeholders together to problem solve and overcome coordination challenges.” They are initially expected to produce a proof-of-concept freight information exchange by the end of summer.
The White House said the commitment to move the transport logistics system to 21st century digitization follows a commitment to move towards 24/7 operations made last fall.
Participants discussed the progress made to date in working collaboratively across private sector stakeholders and with federal and state governments to address supply chain bottlenecks at ports.
These included a drop in long-term dwelling containers, for example, by 60% at the Ports of Los Angeles and Long Beach since November, and a reduction in empty containers (by over 30% at LA port since January), and the creation of pop-up sites for containers at Savannah.
They underscored the value of greater data transparency across the supply chain and how this would benefit not only their companies but also the system more broadly, cutting waste and reducing costs for consumers.
The White House said a more reliable, predictable and accurate information exchange on goods movement is the hallmark of a globally competitive 21st century supply chain and is especially vital to small and medium businesses that lack visibility into the current system.
Participants said this type of digital infrastructure was more important than ever because of supply chain disruptions due to global events like COVID-19 and Russia invading Ukraine.
The White House said the initiative includes 18 initial participants that represent diverse perspectives across the supply chain, including private businesses, trucking, warehousing, and logistics forums, ports and more – with the hope to add more partners in future.
These key stakeholders, which include global container shipping giants Mediterranean Shipping Co and CMA-CGM, will work together with the administration to develop an information exchange to ease supply chain congestion and speed up goods movement.
Last year, ports and the private sector moved a historic amount of goods with record holiday sales and delivery times below pre-pandemic levels. Today, real retail inventories excluding cars are 6% more than at end-2019 and products at grocery and drug stores are 90% in stock, just 1 percentage point below pre-pandemic levels, the statement said.
Initial partners in FLOW include the port authorities of Long Beach, Los Angeles, Georgia, ocean carriers CMA CGM and MSC; terminal operators Fenix Marine Terminal and Global Container Terminals; businesses Albertsons, Gemini Shippers, Land O’ Lakes, Target, True Value; trucking firm CH Robinson, chassis provider DCLI and FlexiVan; logistics and warehousing players FedEx, Prologis and UPS.
FLOW was roundly welcomed by stakeholders.
“We are honored to be recognized as a leader in supply chain management and asked to serve on this White House task force. These have been exceptional times, and I’m very proud of the innovative solutions our entire operations, merchandising and inventory teams employed to get products to our retailers as quickly as possible,” said Chris Kempa, True Value chief executive.
Port of Los Angeles executive director Gene Seroka said he was looking forward to helping drive the initiative forward. “This nationwide supply chain data visibility effort will support system resiliency, improve our trade competitiveness and empower American businesses to get products to market with greater consistency and reduced cost,” Seroka said.
FedEx Logistics president and chief executive Ugo Lange: “Data is critical to all participants in the supply chain, and in the ocean environment, there is tremendous opportunity to achieve better optimization of current data by making more effective use of it from origin to delivery point.”
