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Home » Artificial Intelligence » The Risks of Standing Still in Terminal Operations
THINK TANK

The Risks of Standing Still in Terminal Operations

AT A FORK IN THE ROAD, TWO SIGNS POINT IN OPPOSITE DIRECTIONS

Photo: iStock.com/themacx

August 10, 2026
Julian Galvis, SCB Contributor

There is no headline that reads "Terminal Falls Behind Due to Comfortable Decision-Making." Decline rarely announces itself.  It accumulates quietly, quarter after quarter, in the form of missed opportunities, slower cycle times, and a gradual acceptance of "good enough."

Executives are trained to evaluate the risks of change, but very few organizations evaluate the risks of standing still. In transportation, that imbalance is one of the biggest reasons modernization moves more slowly than it should.

When a company evaluates a proposed technology investment, every possible downside gets examined in detail. What if implementation takes longer than expected? What if adoption stalls? What if the promised return does not materialize? Those are fair questions, and responsible leaders should ask them. What organizations rarely ask with the same rigor is the opposite question: what does it cost us to leave things exactly as they are? Over more than two decades working with terminal operators, I’ve watched countless organizations pour effort into analyzing the risk of moving forward while treating the status quo as if it carried no cost at all. It almost always does.

The consequences of delayed modernization are difficult to see because they rarely arrive as a single event. Instead, they show up as a slow drift. Gate queues get a little longer each year. Billing disputes take a little more time to resolve. Housekeeping moves generate no revenue but continue to fill the yard because planning tools cannot keep up with the pace of operations. Talented employees spend more of their time reconciling information that modern systems could have reconciled automatically. Customers grow accustomed to slower responses and less visibility, then start comparing your operation to competitors who deliver both. None of these developments triggers a crisis on any given day, which is exactly why they are allowed to continue for years. Over time, they compound into a serious operational and financial burden that nobody consciously chose to accept.

Part of the reason inaction persists is that ownership works differently depending on the decision. When an organization moves forward with a new system, there is almost always someone whose name is attached to the outcome. Years later, people remember who championed the project. When an organization decides to wait, responsibility spreads across departments, committees, and executive teams until it nearly disappears. Everyone participates in the decision, but no single person is truly accountable for it. Waiting feels safe because it looks like caution, when it is often the most consequential decision on the table.

The objections are remarkably consistent. Few argue that a technology cannot work. Instead, the concerns center on timing, readiness or market maturity. Now is not the right time. The operation is not ready. Let's revisit this in the next planning cycle. Those conversations feel measured in the moment, but the outcomes tend to look the same: a decision to preserve the current state, a room full of people who feel comfortable with the outcome, and a set of operational problems that continue to accumulate cost.

History Repeats Itself

Our industry has watched this pattern play out many times before. Real-time tracking and event visibility were once considered unnecessary. Not long ago, customers accepted that, once cargo entered the network, visibility was limited, and exceptions were managed after the fact. Introducing real-time visibility raised cultural as well as technical concerns. Many questioned whether customers wanted that level of transparency, or whether operators could consistently deliver on those expectations. Today, real-time visibility a baseline expectation, and terminals without it are the ones asked to explain why.

Automated planning and optimization in terminals followed a similar arc. For years, planning depended on experience, intuition and institutional knowledge. Algorithms were viewed as academic: useful in theory but unable to reflect the realities of labor rules, weather or local constraints. Now, even the most experienced planners will acknowledge that optimization software amplifies expertise. Operations that have not invested in these tools quietly struggle to scale, while those that adopted them early continue to widen the operational gap.

Terminal operating systems themselves went through the same cycle. Radios, clipboards, spreadsheets and personal knowledge worked, and many operators were understandably reluctant to disrupt processes that had produced steady results for years. But "worked" and "worked efficiently" were never the same thing. As volumes grew and customer expectations shifted, those legacy processes began imposing invisible limits on service quality, staff productivity and financial performance. Today, no serious terminal would consider running without a modern system of record. As the cost of delaying adoption continued to rise, organizations increasingly recognized that standing still carried greater risk than moving forward.

The pattern is always the same. First, we dismiss; then we observe. Then we pilot. Then we normalize. Eventually, we cannot imagine operating without the very technology we once questioned. The same trajectory now applies to a new generation of tools, including AI-supported operations planning, digital twins that stress-test capacity around the clock, and autonomous inspection systems that operate overnight. Not every emerging technology will succeed, and skepticism is not unreasonable. Our industry is careful, operationally responsible and disciplined about risk, and those qualities are genuine strengths. But caution becomes a weakness when the only risk being measured is the risk of acting.

Leadership Requires Measuring Both Risks

Leadership exists to weigh risks honestly and make decisions that stand up over time. The organizations that will define transportation ten years from now are the ones asking a sharper question today: not simply "what does it cost to move forward?" but "what does it cost to keep waiting?"

This is where leadership needs to change the conversation. Every technology investment carries a cost that leaders analyze in detail, but the cost of maintaining the status quo deserves the same discipline. Leaders should quantify how much current inefficiencies cost the organization each year, treat the choice to wait as an active decision with real financial consequences, and be willing to put their name behind that decision, exactly the same way they would behind an investment. When leaders hold themselves accountable for both directions of the decision, the analysis tends to look very different. Many delays that once seemed like practical risk management begin to look like the more expensive path. The defining question for transportation leaders is shifting from the cost of moving forward to the business consequences of standing still.

Julian Galvis is vice president, sales & marketing at Tideworks Technology.
 

 

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