Chain Reaction is Sourcing Journal’s discussion series with industry executives to get their take on today’s logistics challenges and learn about ways their company is working to keep the flow of goods moving. Here, Michael Goldman, general manager of North America at Caru Containers, discusses how the global transportation company supports its partners in building more resilient and diversified supply chains amid ongoing disruptions and what the U.S. can learn from China.
Name: Michael Goldman
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Title: General manager, North America
Company: Caru Containers
What is Caru Containers?
Caru Containers is a global company with Dutch roots. Operating from 10 offices and active in over 70 countries, we trade new and used shipping containers worldwide. We lease containers to major shipping lines and purchase decommissioned fleets from some of the industry’s largest players. These containers are then resold through various distribution channels for reuse in domestic commercial storage
What industries do you primarily serve?
We serve multiple industries including ocean shipping, international freight forwarding and domestic container storage.
What is the main thing brands and retailers could do right now that would immediately improve logistics?
Sourcing diversity is paramount. Business thrives on stability and predictability, but those qualities are often absent in today’s post Covid-19 logistics landscape. Since the steady rise of globalization, we’ve entered an era shaped by disruption. Whether caused by extreme weather, labor strikes, war or self-inflicted geopolitical tensions, disruption comes in many forms. Even a summer intern will hear the phrase “Let’s not put all our eggs in one basket” within their first week. A cliché, yes, but never more relevant to strengthening international logistics resilience than it is today.
When it comes to supply chain logistics challenges, there are things companies can fix, and things that are beyond their control. How can the former help the latter?
First and foremost, companies need a diverse supplier portfolio. Relying on a single vendor for a specific product or service all but guarantees vulnerability to unexpected market disruptions beyond a business’s control.
The globally connected companies best positioned to navigate the next decade will be those with agile supply chains capable of quickly pivoting in response to disruption.
What area of logistics isn’t receiving the industry attention it deserves?
Limited access to rail transport for small and midsized U.S. businesses—due to high pricing and volume thresholds—harms both the domestic economy and overall quality of life. Our freight rail system is largely designed to serve massive corporations, leaving smaller players reliant on trucking. The result? More congestion on our roads, higher emissions and worsening urban gridlock.
Meanwhile, China’s Belt and Road initiative enables goods to move by rail across two continents—from China to Europe—at costs lower than many long-haul domestic trucking routes in the U.S. As global businesses take advantage of this infrastructure, American companies should be asking both public and private sectors why similar supply chain capabilities aren’t available here.
What is your company doing to make the movement of goods more sustainable?
As a sustainability-minded company, we understand the lack of efficiency in shipping an empty container. We have recently invested significantly in scaling our One-Way Lease capabilities, which focus on matching our empty containers to cargo destined for the same location. Combining what would have been two containers traveling the same route into one container reduces our carbon footprint.
Are you optimistic about the state of supply chains in the next few years?
Despite ongoing global political shifts and the resulting supply chain disruptions, I’m impressed by how swiftly businesses pivot and adapt with smarter solutions. For years, the shipping and logistics industries lagged behind in adopting digital tools, even as commercial internet use surged over the past three decades. But that’s changed. Today, we see global positioning system (GPS) trackers on containers, reefer data delivered straight to beneficial cargo owners’ (BCO) phones, blockchain adoption by major carriers and major strides in reducing emissions to meet International Maritime Organization (IMO) standards.
Though slow to start, the industry is catching up fast. And because of that, I’m more optimistic than ever about the future of global supply chains.
