FASH455 Learning activity: After watching the two video above, please explore the following topics with the assistance of ChatGPT or other generative AI tools:
- The significance and complexity of container shipping for U.S. fashion brands and retailers
- Current issues related to container shipping for U.S. fashion brands and retailers
In your response, please include the following elements:
- Questions: list at least three questions you asked ChatGPT or other AI tools that helped generate the most information and insights.
- Summary and reflections: summarize the key points from the answers you received from the AI tool and share your reflections (e.g., were there any surprising insights? the outlook for the issues discussed)
- Further Reading: Suggest 1-2 additional articles from national or international press that offer deeper insights into the topics. The readings need to be published after 2024. Please share the article link and briefly explain why you recommend them.
There are two ways of importing of exporting goods. The first being air and the second being boat aka shipping containers. Shipping containers make up 90% of all goods transported overseas. They support the flow of global trade and contribute to this phenomenon continually. However there are complications that arise with this way of transporting goods. Economic and political climate as well as environmental issues can impact how and most importantly when the shipping containers arrive / deport. Relating this to what we are learning in class, this specifically relates to supply chain disruptions and where companies source from. Companies source for efficiency, low cost, and a number of other things. By strategically picking where you source from you can eliminate some of these supply chain disruptions.
Do you think container shipping will continue to play a dominant role in apparel trade over the next five years, or will its relative importance decline with the rise of e-commerce, which may favor air shipping? Why?
I think that the utilization of shipping containers will still be in the forefront of apparel trade. However, I do think that this importance of shipping containers may decrease just because of the uncertainty and lead time associated with this shipping method.
I found these videos to be incredibly important, as they explain an issue that essentially dictates the health of the global T&A supply chain and trade agreements. The shipping container industry, just like apparel manufacturing industry, is pioneered by China. China is a global leader in terms of exports and steel manufacturing, which helps to explain why over 95% of all shipping containers originate from this nation as well. What’s really concerning, is that while the US imports a great deal of Chinese made products via Chinese made shipping containers, the nation refuses to bring any American made products back to Asia. When it comes to apparel sourcing and trade, the US is doing an increasingly good job at diversifying the nations we conduct business with. However, it seems that even if we decrease our dependency on the nation for apparel goods, we’ll still be highly dependent on them as they generate the containers required to import goods from any given nation. Maintaining a working relationship with China is clearly quite crucial, especially when considering that 60% of the inflation the US experienced from 2021-2023 was a result of supply chain disruptions. Finding a way to execute cost effective and efficient T&A business activities in a way that also appeals to productive global communication and international relations is no easy feat; however, striking a perfect balance is simply unavoidable if we want the US to remain a key player in the global T&A industry.
These two videos give very valuable insights into the convoluted dynamics of global trade and the role of shipping containers in maintaining supply chain efficiency. The first video goes over how disruptions in container availability, often caused by port congestion, geopolitical tensions, or problems like COVID, can have far-reaching economic consequences. Container shortages and rising shipping costs directly impact consumers through increased prices and limited product availability. I believe that the overwhelming reliance on China for container manufacturing and its control over global shipping raises same important questions about the vulnerabilities and potential for cracks in this system, particularly given the shifting geopolitical landscape. This really shows the need for diversification in container production to protect against potential disruptions in global trade. The second video focuses on the ongoing debate about the automation of US ports. Automation has the potential to improve port efficiency, reducing bottlenecks and increasing productivity significantly. However, the challenge lies in balancing technological advancements with the protection of labor rights. Also, from the second video, I noticed how automation negotiations are about improving operations and safeguarding jobs, with unions like the ILA pushing for stronger restrictions. The slow pace of automation adoption in the U.S. compared to other countries shows how complex and expensive it is to implement these changes, with long-term investments required to see benefits. Therefore, while automation might give a solution to port congestion, this should be handled carefully to avoid unintended social and economic consequences, ensuring that the transition benefits both workers and the broader economy.
The following videos truly highlight the critical role of container shipping in maintaining a functional global trade system and the vulnerabilities that come with it. The reliance on China for both container manufacturing and exports emphasizes a dependency and reliance that the U.S. cannot easily bypass, even with efforts to diversify its sourcing partners. This dynamic is particularly concerning as disruptions, whether from geopolitical tensions, supply chain inefficiencies, or unforeseen crises like COVID-19, can ripple across industries, inflating costs and reducing product availability for consumers.