We live in a world of high-tech ambition, yet our supply chains are held together by digital duct tape. The main offender? Shipping Data – a fragmented mess of “old cow path” processes weakly linked across operational, financial, and planning domains. In my experience, this isn’t just a technical glitch; it’s a structural failure that turns sophisticated logistics networks into digital chaos. Without a doubt, this lack of data interoperability is the single greatest barrier to achieving a transparent, secure digital infrastructure. Moreover, without being “Data-Ready”, our investments in AI and IoT are just expensive ornaments on a broken tree. The question is: Can the government truly help unsnarl this digital mess?

In this article, I’ll identify the specific interoperability challenges that both logistics providers and government agencies wrestle with everyday. I’ll also share real-world examples of how government agencies, including the DOT, CBP, and FMC, are working to prevent bottlenecks and secure our national interests, while supporting commercial efficiency. Most importantly, I will recommend four federal initiatives that I believe are essential to accelerating a secure, “Data-Ready” future for both the public and private sectors. If you are ready to move beyond “traditional” data silos and toward a high-velocity digital substructure, this article is for you.

1. Both Supply Chains And Government Agencies Are Challenged By Shipping Data Interoperability.

In terms of supply chain interoperability, shipping data remains the most significant barrier. Its fragmented nature diminishes the advantages of digital supply chains and provides minimal analytical value for most logistics organizations. More crucially, this disjointed data stymies the adoption of advanced technologies like AI, IoT, and blockchain. Lastly, this shipping data “chaos” impedes not only commercial operations but also the mission-critical oversight of government agencies such as the Department of Transportation (DOT), Customs and Border Protection (CBP), and Federal Maritime Commission (FMC).

Shipping data is unlike the more consolidated data found within the four walls of a warehouse or a fulfillment center. Due to the nature of transportation, shipping data is scattered across diverse systems and geographies. As a result, it is difficult for supply chains to synthesize and gain Insights from shipping data. Hence, the chaotic nature of shipping data adversely affects planning, financial processing, and on-going operations from manufacturing to warehousing. To highlight the biggest challenges with shipping data, here are the 4 main issues:

Poor Shipping Data – Here Are The 4 Reasons Impeding High Tech Visibility And Actionable Analytics

Shipment Data Interoperability Challenges

• Data Is Siloed Within Disjointed Organizations, Restricting Shipment Visibility.
• Massive Amounts Of Fragmented Shipping Data, But Few Insights.
• Supply Chain Orchestration And Automation Limited Due To Complicated Shipping Data Structures.
• Shipping Data Split In Two Parts, Financial And Operational, Impeding both planning and FinTech Solutions.

For more details about the poor state of shipment data, see my article, Poor Shipping Data Analytics – Here Are The 4 Reasons Impeding High Tech Visibility And Optimization.

“… the chaotic nature of shipping data adversely affects planning, financial processing, and on-going operations from manufacturing to warehousing.”

2. How Can The Government Help Fix Data Interoperability Within Supply Chains?

Government agencies like the DOT, CBP, and FMC are uniquely positioned to solve long-term data interoperability challenges within our supply chains. In fact, a key part of their mission is to eliminate supply chain bottlenecks, secure supply chains, stimulate economic growth, and facilitate operational efficiencies within the commercial sector. So, with data interoperability being a major impediment to supply chains, it is critical that government agencies get involved to help the commercial sector achieve seamless data exchange. Without a doubt, the government can help overcome data interoperability challenges by using its authority through legislation, regulation, industry incentives, and public-private partnerships. To detail, the following areas highlight where federal leadership can most effectively drive data interoperability improvements

a. Legislation and Regulation.

Governments can pass laws and regulations that establish and encourage standardized data formats. Additionally, the Government can help to reduce trade barriers through the promotion of data sharing. Further, they can promote the production of registries for Know Your Customer (KYC) and Know Your Vendor (KYV). These types of actions will help improve supply chain efficiencies, competition, and lower prices for the general public.

b. Provide Incentives.

Governments can provide financial incentives, such as tax breaks or grants, to companies that adopt interoperable systems. Also, incentives can be used to encourage adherence to data format standards, transparency and information sharing.

c. Establish Public-Private Partnerships. 

Governments can partner with private sector companies to develop and promote the use of interoperable data systems. For example, see OMB Revised Circular A-119. Also, these partnerships can involve joint research and development projects, co-funding initiatives, or other forms of collaboration. Further, government agencies can jointly fund proof-of-concepts to enable the quick adoption of emerging technologies and methodologies.

d. Infrastructure Development.

Governments can invest in the necessary infrastructure to support data interoperability. This could include high-speed internet connections and smart infrastructure such as internet of things (IoT) networks. Further, this can include funding of government agencies that interface with supply chains to improve data interoperability. Moreover, the Government can provide incentives for companies to modernize data infrastructure that supports supply chains such as ports and rail. For example, the Government can use authorized funds to provide incentives for shipping exchanges to modernize data infrastructure that supports supply chains such as ports and rails. See OSRA 2022 (PL 117-146), Section 4.

e. International Cooperation. 

Given the global nature of many supply chains, governments can work with their international counterparts to develop and implement global standards for data interoperability. In particular, this would include international standards development organizations such as ASTM International.

f. Security Standards, Transparency And Traceability.

Digital Identity In Logistics And What To Know – The Best Security, Scary Risks

Further, to help secure supply chains, the Government can continue to promote data security standards as is done through the National Institute of Standards and Technology (NIST). In particular, data security standards not only promote privacy, but the government can help the commercial sector in the following areas:

• Data Protection. Assist businesses with preventing data breaches that can paralyze parts of supply chains.
• Supply Chain Traceability. For select products and functions, the government can promote end-to-end supply chain traceability to protect national interests such as hazardous materials, counterfeiting, and food safety.
• Legal Identification. Also, the government can set guidelines to regulate legal entities, data ownership and data access rights to secure the supply chain and increase transparency. 

For more info on security standards and digital identity, see my article, Digital Identity In Logistics And What To Know – The Best Security, Scary Risks.

“… the government can help overcome data interoperability challenges by using its authority through legislation, regulation, industry incentives, and public-private partnerships.”

3. So, What Are U.S. Government Agencies Doing Today To Enable Better Supply Chain Interoperability?

There are several Government agencies making real progress on supply chain data sharing. Specifically, the Department of Transportation (DoT), Federal Maritime Commission (FMC), and Customs and Border Protection (CBP) have launched promising initiatives to tackle one of the industry’s biggest headaches. Namely, getting different systems to talk to each other. Below, I’ll walk you through what these agencies are doing to help private companies move goods more efficiently.

a. DOT: Working To Improve Data Interoperability For The Nation’s Transportation Systems.

The key objective of the Department Of Transportation (DOT) is to serve the American people and economy by delivering the world’s leading transportation system. In regard to data interoperability, in 2022 DOT started the FLOW (Freight Logistics Optimization Works) initiative. This is a public-private effort to develop a digital tool that gives logistics companies information to better move goods more quickly and cheaply, ultimately bringing down costs for families. Below, I’ll identify the types of data interoperability issues that the FLOW Initiative is focusing on to increase the resilience of U.S. supply chains. First, l’ll let’s look at interoperability challenges that FLOW is addressing.

FLOW’s Interoperability Focus

• Lack Of Visibility Of Logistics Flows To Detect Chokepoints. Due to poor supply chain visibility across transportation networks, chokepoints go undetected. As a result, supply chain stakeholders, both public and private, do not have the opportunity to react and avoid chokepoints. Thus, there is a pile-on effect that makes matters even worse.
• ETAs Are Not Trustworthy Enough For Logistics Planning. Especially, for ports of entries and major terminals, estimated time of arrival (ETA) for shipping and supply chain events cannot be relied on. Further, this results in a lot of extra effort to confirm ETAs and develop contingency plans.
• Lack Of Interoperability Makes Supply Chain Operations Inefficient. Due to this lack of visibility within transportation networks, logistics operations cannot optimize inventory levels, carriers can not optimize asset utilization, and drayage wait time increases.

So, the FLOW initiative enhances supply chain transparency by balancing logistics demand with asset availability. By aggregating demand signals (POs and bookings) from shippers and supply signals (utilization rates) from port providers, FLOW creates a high-level view of potential bottlenecks at U.S. ports. Moreover, the FLOW platform is designed not for individual shipment tracking, but as a strategic tool for identifying systemic availability across the network. For example, authorized users can leverage these trends to monitor import container slots, truck and chassis availability, and warehouse capacity at key U.S. ports. For more details on DOT’s FLOW initiative, see ASTM F49 Seminar slide packet, Bridging the Gaps. 

b. CBP: Securing Better Data Interoperability For More Efficient Customs Processing And To Protect American Economic Interests.

When it comes to supply chains, the key objectives of the U.S. Customs and Border Protection (CBP) are as follows:

• Enforce the laws related to customs and trade.
• Protect American economic interests.
• Assist American business to grow through lawful international trade and commerce.

As part of their mission, CBP is advancing trade modernization through the Global Business Identifier (GBI) Test. Also, they are working with interoperability standards to enhance supply chain visibility, improve data accuracy, and secure cargo, particularly for e-commerce. Key initiatives focus on adopting standard identifiers (D-U-N-S®, GLN, LEI) and upgrading the Automated Commercial Environment (ACE) to 2.0.

CBP Data Interoperability Focus

• Legal Business Identities. The Global Business Identifier (GBI) initiative is the current focus of CBP to identify a reliable, standardized method for determining legal business entities, locations, and roles (manufacturer, shipper, seller) in the supply chain..
• Global Data Interoperability Standardization. The CBP is committed to developing and adopting standards for global interoperability among legacy, current, and emerging technologies. Their aim is to create a “common language” for trade data. Also, by them adopting global standards, they will help to future-proof both the CBP and the private sector, 
• Gaining End-To-End Supply Chain Visibility. In particular, CBP seeks cargo visibility from the country of origin and manufacturer of origin. This is to enhance security, enforce trade laws, apply anti-dumping and countervailing duties, protect consumers, and ensure supply chain integrity. 

CBP’s current interoperability initiatives also includes working with the Department of Homeland Security’s Science and Technology Directorate under the Silicon Valley Innovation Program. Their recent tests focused on pipeline oil and steel supply chains. The goal of these tests was to remove the need for paper, thus, allowing for the real-time exchange of data.  For more on what CBP is doing to advance data Interoperability, visit their  Business Transformation and Innovation Division’s (BTID) web page.

c. FMC: Facilitating Better Data Interoperability To Improve Maritime Commerce.

The Federal Maritime Commission (FMC) regulates the U.S. international ocean transportation system. In regard to data interoperability, the FMC is using the Maritime Transportation Data Initiative (MTDI) to develop recommendations for common data standards and access policies. This MTDI initiative is helping the FMC to fulfill its mission of fair and efficient maritime commerce. Additionally, this initiative will enable FMC to better protect against unlawful and unfair shipping practices. Lastly, improving data interoperability will enable FMC to better fulfill its mission to review and assess agreements among ocean common carriers and marine terminal operators. See below for FMC’s key data interoperability challenges, centering around port operations.

FMC Data Interoperability Focus

• Scheduling Of Ocean Carrier Activities. There is a lack of both frequency and accuracy in the scheduling of ocean carrier activities. This then has a cascading effect on both government and commercial operations in terms of efficiency and timeliness.
• Port Operations Event Visibility. There is a lack of cargo status visibility, data accuracy, and timeliness of status changes. This results in delays and poor asset utilization for all organizations involved in port operations.

In 2021, FMC established the Maritime Transportation Data Initiative (MTDI) to develop recommendations for common data standards and access policies. This initiative has worked extensively with ocean carriers, marine terminal operations, port operations, drayage trucking services, warehouse operations, and intermodal rail to identify data interoperability solutions to improve port operations. As of 2023, FMC’s initiative is recommending a Maritime Transportation Data System (MTDS). Specifically, this system would enable port operations transparency, ease of access, and coordination of information requirements. See the MTDI report for details.

Lastly, for more details on the status of FMC’s Maritime Transportation Data Initiative, see ASTM Committee F49 Seminar slide presentation, Bridging the Gaps. 

“… DoT, FMC, and CBP have launched promising initiatives to tackle one of the industry’s biggest headaches. Namely, getting different systems to talk to each other.”

4. Four Recommended Federal Initiatives to Accelerate “Data-Ready” Supply Chains.

While government agencies have made progress in securing supply chains and improving data interoperability, significant challenges remain. Our digital supply chains are not yet “data-ready.” We currently lack the interoperability required to fuel on-demand analytics and fully leverage advanced technologies like AI. By prioritizing data readiness, we can use AI to bridge existing silos across operations, finance, and planning – replacing rigid software structures with a continuously improving digital substructure. This shift will provide decision-makers with high-velocity, on-demand analytics to drive superior outcomes. To achieve this interoperable infrastructure for supply chains, here are four ideas on how the government can help.

a. Establish a Shared Business Glossary for Supply Chains. 

Feeble Business Glossaries: Know It’s The Greatest Killer Of Supply Chain Collaboration And Data Interoperability

Supply chains have a critical need to eliminate the “data friction” caused by overlapping and vague business terminology. I recommend a government agency such as the U.S. Department of Commerce (DOC) or Department of Transportation (DOT) champion a single, shared business glossary for all modes of transportation and supply chain functions. Moreover, definitions must have the precision to convey actionable information, enabling unambiguous understanding by both human operators and AI.

For more on this topic, see my article, Feeble Business Glossaries: Know It’s The Greatest Killer Of Supply Chain Collaboration And Data Interoperability.

b. Promote the Adoption of an Interlinked Shipping Data Framework.

Mastering The Shipping Data Life Cycle: The Way To A Complete View Of The Truth

To overcome fragmented data sources, recommend that both the government and commercial interests adopt the ASTM International’s Goods Movement Process (GMP) and the shipper-generated Transport Unit Identifier (TUID) framework. In particular, the TUID offers an unprecedented opportunity. This is a standardized Load ID that serves as a “Golden Thread” to link disconnected shipping data across its entire life cycle into a cohesive, searchable reality.

For more on this topic, see my article, Mastering The Shipping Data Life Cycle: The Way To A Complete View Of The Truth.

c. Deploy High-Impact Emerging Technologies.

Recommend that the government aggressively allocate resources to research and facilitate the deployment of the following high-impact information technology capabilities.

Computer Vision AI: The Unlimited Ways To Use This Awesome Tech To Empower Supply Chains

• Computer Vision AI for Seamless Data Exchange. Computer Vision AI serves as a direct bridge between physical supply chain operations and digital infrastructure. By extracting actionable insights directly from visual data, it eliminates the “friction” of misaligned data formats and cross-organizational translation errors. This type of AI ensures “picture-perfect” accuracy in information exchange, replacing outdated and cumbersome data-sharing methods with streamlined, image-based verification.
• Multi-Hop Reasoning AI to Eliminate Data Interoperability Latency. Multi-hop reasoning AI, supported by Knowledge Graph tech, provides the contextual linkage between fragmented data in multi-functional silos such as operations, finance, and planning. While traditional data sharing methods can take days to reconcile between different functional domains, this advanced AI provides on-demand synthesis for real-time decision support. This shift from “waiting for information” to “acting on insight” is essential for modern, high-velocity supply chain management.

For more discussions on these emerging technologies, see my articles, Computer Vision AI: The Unlimited Ways To Use This Awesome Tech To Empower Supply Chains and Multi-Hop Reasoning For Supply Chains.

Multi-Hop Reasoning For Supply Chains: This Is The Way To Make Better Decisions And Avoid Unintended Consequences

d. Lead the Supply Chain Interoperability Mission.

Also, the federal government is uniquely positioned to fix supply chain data chaos, particularly in the Transportation Industry. I recommend that the DOT leverage its authority through legislation, incentives, and the expansion of programs like the DOT’s FLOW (Freight Logistics Optimization Works) initiative. This is crucial for success to both secure the supply chain and ensure seamless, mutually understood data sharing across the transportation network.

“By prioritizing data readiness … replacing rigid software structures with a continuously improving digital substructure. This shift will provide decision-makers with high-velocity, on-demand analytics to drive superior outcomes.”

Acknowledgments and More References.

Also, I want to thank Michael Darden of DFM Data Corp, and the Transport Unit Identifier (TUID) Working Group for keeping me abreast of these data interoperability initiatives going on within government agencies and within the various data standardization development groups such as ASTM International. Lastly, for more on what is needed for supply chains to achieve true data interoperability, see my article, Logistics Data Interoperability: Advice To Make It Understandable, Usable, Secure

Logistics Data Interoperability: Advice To Make It Understandable, Usable, Secure

Need help with an innovative solution to make your supply chain data ready? I’m Randy McClure, and I’ve spent many years solving data readiness challenges to help decision-makers gain better, faster insights and for organizations to leverage data-intensive technologies. As a supply chain tech advisor, I’ve implemented hundreds of successful projects across all transportation modes, working with the data of thousands of shippers, carriers, and 3rd party logistics (3PL) providers. I specialize in pilot projects and program management for emerging technologies. If you’re ready to modernize your data infrastructure or if you are a solution provider, let’s talk. To reach me, click here to access my contact form or you can find me on LinkedIn.

For more form SC Tech Insights, see latest articles on Data, Interoperability, and Supply Chains.