The real-time supply chain demand tracker of the Biden administration is becoming increasingly integrated into the economy.

• The Biden administration established a data alliance with corporations such as Walmart, Target, Nike, Home Depot, and FedEx, Union Pacific, and DHL to monitor the supply chain in real-time as a source of inflation.
• The platform FLOW, launched two years ago, is now expanding to track inland freight ports such as rail terminals and warehouse end-destination data.
• In an exclusive interview with CNBC, Andrew Petrisin, advisor for multimodal freight for the Department of Transportation, stated, "We are getting a look at actual demand."

The Biden administration is broadening its collaboration with significant American corporations to monitor the real-time movement of goods through a freight data partnership.

The Department of Transportation is announcing the expansion of its digital platform for supply chain monitoring, Freight Logistics Optimizations Works (FLOW), to include data on inland freight ports, such as rail terminal and warehouse end-destination information.

The Biden administration launched FLOW two years ago, which has partnered with retailers such as Walmart, Target, and Lowe's, as well as railroads Union Pacific and BNSF, and logistics providers DHL and FedEx. The platform provides real-time information on port and inland network congestion and allows participants to monitor unexpected cargo shifts caused by global events, such as the Houthi attacks in the Red Sea.

The White House's economic analysis revealed that over 80% of recent U.S. economy's disinflation can be attributed to the supply chain.

"Andrew Petrisin, advisor for multimodal freight for the Department of Transportation, stated in an exclusive interview with CNBC that they are providing a look at actual demand by aggregating purchase orders from shippers 40 days out and importer partners, as well as booking information from ocean carrier partners 60 days out on a daily basis. This allows the broader membership to see and understand aggregate future demand."

Petrisin informs CNBC that the additional data will enhance the knowledge that significant companies obtain from the platform, which tracks container import volumes and traffic from the source of export to a U.S. port and eventually picked up by truck or rail and delivered to a warehouse or another inland port. Inland ports play a crucial role in the flow of trade, from the pickup and drop-off of loaded containers to the movement of empty containers to be loaded onto vessels to be filled again by foreign manufacturers.

The FLOW platform provides a real-time snapshot of container traffic by connecting the supply chain pipes of partners. Key information shared by participants includes inbound containerized freight, which serves as a barometer of future demand volumes against current regional capacity to move ocean containers.

Logistics decision-makers are utilizing data to manage and reduce trade uncertainties, including the Red Sea diversions and Panama Canal drought.

"It's a collaboration tool," Petrisin said.

"We can be proactive and get ahead of this by using data to plan ahead and ensure we have chassis available to load containers onto ships at the West Coast Ports," Petrisin said.

The objective of the data-sharing platform is to provide a comprehensive view of trade routes and methods, enabling participants to make informed decisions, according to Petrisin. For instance, we are collaborating with an ocean carrier partner to utilize purchase order data to improve future bookings inland, he stated.

Since the Houthi attacks in the Red Sea began last year, the DOT has held regular listening sessions with the freight industry and marine labor groups. The organization is now collaborating with FLOW participants to utilize data on the shift in cargo from the Suez Canal to going around the Cape of Good Hope in Africa.

Pete Buttigieg, the Department of Transportation Secretary, has met with mariners, ocean carriers, ports, and other industry leaders to discuss the ongoing situation in the Red Sea and its impact on shipping and the freedom of navigation. Meanwhile, Deputy Secretary Polly Trottenberg traveled to the Panama Canal earlier this year amid a drought that has reduced the number of vessels transiting the canal and has had an impact on international commerce.

Buttigieg stated that the Biden-Harris administration's efforts to fortify American supply chains have aided in decreasing inflation from pandemic highs, and with the expansion of FLOW, we anticipate further advantages for American families and businesses.

The White House and freight transportation

FLOW was established as part of the Biden administration's response to the four-decade high inflation and the whole-of-government approach to supply chain disruptions caused by the Covid-19 pandemic. Initially, the partnership had a small number of participants, but it has since grown to over 70, with 60 additional participants in the onboarding process. According to Petrisin, FLOW is currently capturing nearly 80% of cargo volume at major U.S. ports.

According to Jim Bishop, director of marketing and sales for Union Pacific, a key benefit of the Covid pandemic is the need for improved communication within the supply chain.

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, a FLOW partner, and whose ContainerAI was integrated into the platform, stated to CNBC that for the first time, there is a strategic effort from the executive branch to gather data and milestones to proactively identify and address supply chain bottlenecks before they become a problem.

Jason Craig, director of government affairs for CH Robinson, stated that FLOW is the first time a U.S. government office has advocated for freight transportation.

"C.H. Robinson was one of the first members of the FLOW initiative because it aggregates real, forward-looking supply chain data across the industry. The pandemic exposed the gap in data aggregation painfully."

The success of FLOW, according to Petrisin, lies in its ability to comprehend real-time changes in demand and their impact on the supply chain system. By analyzing freight data in real-time, retailers and logistics companies can optimize their cargo throughput, thereby minimizing congestion and reducing logistics expenses.

"According to Petrisin, everything is interconnected, including terminal utilization and chassis availability. Offering aggregate statistics and information to the industry enhances their existing data and analysis, enabling them to make better forecasting and service planning decisions."

The FLOW platform includes the nation's busiest container ports, such as Los Angeles, Long Beach, and New York, as well as top ocean carriers like MSC, Maersk, CMA CGM, and Hapag-Lloyd.

"Peter Levesque, CMA CGM North America president and CEO, stated that they have been collaborating with DOT Secretary Buttigieg and his team to enhance the efficiency and timeliness of America's supply chain through data sharing and analysis. The FLOW initiative serves as a testament to the potential of joint efforts between government and industry in addressing the significant challenges affecting the U.S. supply chain."

DHL Global Forwarding's head of ocean freight Americas, Goetz Alebrand, stated that the collaboration continues to bring significant advantages, including a better comprehension of past events and readiness for future disruptions.

The data platform has been restricted to use by active partners instead of being made available to financial firms and the Federal Reserve for economic and markets analysis.

"Petrisin stated that we have received interest from both research and economic standpoints. We are still working on determining how to use the information for research purposes, which must be communicated with our members and industry partners, as it is their data."

Elion Partners, an industrial real estate investment firm, has a managing director of data science, David Vaisberg, who is a member of FLOW. He stated that the port volume data helps the company forecast logistics real estate demand more accurately.

"Vaisberg stated that we have the ability to view in real-time not only recent events but also future expectations regarding the U.S. supply chain and its evolution, thanks to the capability to see the next destination of goods flowing through the port."

The U.S. Maritime Administration received $450 million from the infrastructure funding to strengthen coastal and inland waterway ports, while the Department of Transportation (DOT) announced nearly $5 billion in grants to build or repair infrastructure projects aimed at reducing trucking bottlenecks and improving the flow of freight on the nation's highways.

"Petrisin stated that FLOW is a long-term investment in digital infrastructure for both the DOT and its market partners, emphasizing that it is not a short-term project lasting only one or two months."

As the freight market tightens again, we hope FLOW will help prevent future bottlenecks and disruptions, said CH Robinson's Craig.