This article summarizes the main themes, important ideas, and key facts discussed during the first two days of TPM 2025, drawing from S&P Global’s live video interviews with industry leaders. The overarching theme revolves around the 25th anniversary of TPM, its evolution, and the significant shifts within the global supply chain over that period. Discussions also focused on current challenges, future outlooks, and the impact of technology and sustainability.
The Evolution and Significance of TPM:
- Origins as a Journalistic Initiative: Peter Tershwell, leader of the Journal of Commerce business, explained that TPM originated in 2001 from a simple idea: “why don’t we invite our sources up on stage and, and just like we would decide on what sources we would use for an article, we would decide what speakers we wanted to talk about, what subjects based on our knowledge of their knowledge.” The initial goal was to benefit BCOs (cargo owners), aligning with the Journal of Commerce’s historical focus.
- Organic Growth and Industry Hub: TPM grew organically, driven by the need for larger spaces to accommodate increasing attendance. John Monroe of John Monroe Consulting and Milky Way emphasized TPM’s current status as “the center of my universe” and “the only place you can meet everybody in one location.” He recalled the humble beginnings: “It was one room, you had one aisle. There were uncomfortable chairs on each side, and we had one session at a time.” In contrast, TPM 2025 boasts “multiple sessions, large screens, you know, 4500 people, all the hotels are full.”
- Independent Program Focused on Cargo Owners: Tershwell affirmed that TPM’s core principles remain unchanged: “we’re going to keep our program as independent as it always is and focused on the needs of cargo owners. And that is the bread and butter formula of TPM right from day one.”
- Global Expansion Plans: The future of TPM includes global expansion to reach more BCOs in regions like APEC, the Middle East, Europe, Latin America, Australia, and New Zealand.
The Port of Long Beach’s Role and Evolution:
- Long-Standing Host and Maritime Hub: Mario Cordero, CEO of the Port of Long Beach, highlighted the port’s consistent role as the city host for “24 to 25 years.” He emphasized Long Beach’s identity as a “port city” and the significance of hosting TPM adjacent to the “largest container harbor complex in the country.”
- Green Port Policy Leadership: Cordero proudly discussed the 20th anniversary of Long Beach’s “cutting edge policy known as the green port policy” launched in 2005. This initiative has led to significant emission reductions: “We’ve reduced PM particulate diesel suit like 92%. We’ve reduced locks by 71% and socks by 98%.” This collaborative effort positions the LA/Long Beach gateway as a global leader in green initiatives with a “quest is Zuri Mission.”
- Impact of Carrier Alliances: Cordero identified the “coming of the alliances” in the carrier industry as a significant development, noting its impact on port operations and efficiency, despite initial concerns. The consolidation of carriers from “about 20 or 21 international carrier at that point in time…there were 9 carriers” has driven larger vessels and a focus on cost-effectiveness and decarbonization.
- Future Investments and 24/7 Operations: Looking ahead, Long Beach is focused on amplifying rail connectivity through projects like the “Pure B Row enhancement facility,” which will increase track capacity significantly. Cordero also emphasized the ongoing push towards a “24/7 model of operations” to address port congestion, although he acknowledged it’s an ongoing process.
- Synergy with Barstow International Gateway: The upcoming Barstow International Gateway project is seen as synergistic with Long Beach’s rail infrastructure investments, further enhancing cargo movement efficiency.
Transformative Industry Changes:
- Emergence of China as Manufacturing Center: John Monroe identified “the emergence of China as the manufacturing center of the world” as the single most important change in the last 25 years, driving vessel sizes, port development, and global sourcing patterns.
The Impact of Technology:
- Slow Adoption and Data Silos: Despite advancements, John Monroe characterized the current state of technology adoption in the supply chain as being in the “dark ages.” He criticized the lack of data sharing: “We don’t share data with anybody.” The inability to seamlessly integrate data across the supply chain from purchase order to final delivery remains a significant challenge.
- Potential of AI and Automation: While acknowledging the current limitations, Monroe sees future innovation stemming from better data sharing and the adoption of technologies like AI. Yesper Stigensen, CEO of DSV, echoed this, highlighting DSV’s journey in implementing AI and automation “to take out…some human intervention at the end of the day and get the data quality up” to improve productivity and customer service.
- AI as a Tool for Redesign and Innovation: Stigensen emphasized that AI presents an “opportunity to redesign some of the things that we’re doing and then drive our benefits and, and productivity and innovation.”
Sustainability as a Core Imperative:
- Decarbonization Efforts: The need to “decarbonize the transportation corridors” was a recurring theme. Long Beach’s Green Port Policy serves as a leading example.
- Lineage’s Sustainability Leadership: Adam Forret, Co-founder and Co-Chairman of Lineage, highlighted the company’s commitment to global sustainability, driven by the significant energy consumption of cold storage. Lineage has a “climate pledge to be carbon neutral by 2040” and is actively implementing energy efficiency measures, solar power, and advanced control systems. He noted that sustainability is increasingly a factor in customer RFPs.
Navigating Trade Policy Uncertainty:
- Tariff Turmoil and Reciprocal Tariffs: Scott Lunscombe from the Cato Institute discussed the “tariff turmoil sweeping global trade.” He warned that a “true reciprocal tariff environment” would be incredibly chaotic and complex to implement, potentially involving “a three million different tariffs.” He noted that the current tariff landscape is already at a “7 1/2 or 8 in terms of chaos” on a 10-point scale.
- Practical Challenges of Implementation: Lunscombe highlighted the herculean effort required to match tariffs line by line across hundreds of countries and account for non-tariff barriers. He expressed concern that the implementation might be “fake it,” leading to inaccurate tariff applications.
- Impact of Uncertainty on Investment: High levels of “trade policy uncertainty” are leading to businesses holding back on “investments, output, hiring and investment as people just wait to see what happens.”
- Shifting Trade Dynamics: Lunscombe suggested that if the US dollar appreciates due to tariffs, the administration might target “currency manipulators.” He also noted the ongoing efforts by businesses to reconfigure supply chains to avoid tariffs.
- Potential Future Tariff Targets: Beyond China, Lunscombe identified Europe (due to non-tariff barriers) and developing nations like India and Brazil as potential future targets for US trade actions. He criticized the current “smack 1st and ask questions later” approach to trade policy.
Looking to the Future – Key Takeaways:
- Resilience and Long-Term Planning: Noel Hasegawa, COO of the Port of Long Beach, emphasized the importance of sticking to long-term strategic plans amidst uncertainty. The port’s aggressive capital expenditure program demonstrates this commitment to building the “port of the future.”
- Collaboration and Feedback: Hasegawa stressed the need for ongoing collaboration with shippers and ocean carriers to ensure future port developments meet their evolving needs.
- Continued Innovation and Adaptation: The industry recognizes the need for continuous innovation, particularly in technology and sustainability, to navigate future challenges and opportunities.
TPM 2025 reflects a dynamic industry grappling with its past, addressing present complexities, and actively shaping its future. The discussions highlight the enduring importance of collaboration, the transformative potential of technology, and the growing urgency of sustainable practices in the global supply chain.
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Article Sources:
Live at TPM 2025, Day 1
https://www.youtube.com/watch?v=NqH-ScIWh8A&t=18s
Live at TPM 2025, Day 2
https://www.youtube.com/watch?v=pZyyr_Gbn5E&t=1s
