Biden backs running West Coast ports 24-7 to ease bottlenecks
WASHINGTON — Supply chain issues around the globe threaten to halt the U.S. holiday season. President Joe Biden will announce Wednesday a plan to reduce delays on the West Coast at Long Beach and Los Angeles ports by increasing round-the-clock operation.
The plan includes commitments made by some of the country’s most prominent retailers and shippers for an increase in overnight operations at Long Beach or Los Angeles.
FedEx UPS WalmartAnd Home DepotSenior administration officials briefed reporters Tuesday night that they expect to announce expanded hours operations plans at a virtual meeting on Wednesday with Biden.
In order to talk about private sector commitments, the officials were given anonymity.
Officials at the Port of Los Angeles announced Wednesday that they will be shifting to 24-hour operations. This follows a similar shift made by Long Beach’s Port of Long Beach earlier this year.
The ports of Long Beach, Los Angeles and Los Angeles together account for around 40% of all shipping containers that enter the United States.
The International Longshore and Warehouse Union (ILWU), which represents thousands at ports, is another key stakeholder. The ILWU previously stated that its members were willing to take on these additional shifts.
Officials at the White House stated that “port operators” would be responsible for the payment of the longshoremen as well as keeping ports open for longer hours.
The Biden administration believes that increasing nighttime operation at West Coast ports as well as in freight railroads along the rails to warehouses and shipping centers is the most efficient and effective method of moving goods from the container ships. This will also help ease the pressure on the supply chain.
However, simply unloading additional cargo at ports won’t solve the problem in the U.S. supply chains once the goods have traveled further inland. The United States currently faces a trucking crisis. with a shortage of long-haul truck driversSome companies have begun to look for foreign truckers because of the severity.
California port situation is very dire
There were around 2,000 people at the Oct. 7 event. 60 container ships waiting in open water outside Los Angeles and Long Beachto unload and dock their cargo at berths. It was not common to see a single vessel waiting for slips before the pandemic.
An aerial view of container ships as they wait for their scheduled offload on September 20, 2020 near Los Angeles shows them anchored in Long Beach, California.
Mario Tama | Getty Images
These delays and bottlenecks are affecting ordinary people as well as businesses. The administration official stated that it is difficult for products to reach shelves and goods to arrive at doorsteps.
Experts agree that California’s massive port congestion is caused by a mixture of global and domestic factors.
These include a surge in US demand for durable goods due to pandemics, an old domestic freight and railroad system, shutdowns of factories in China and Vietnam and a shortage of skilled longshoremenThe West Coast.
The domino effect of bottlenecks in ports has been a positive for the economy.
If you want to ensure that you get the item, consumers are advised to purchase Christmas gifts in October.
Retailers of all sizes are finding it difficult to secure cargo containers that can transport their goods from Asia to America. This is where most consumer products are made.
The problem is also caused by skyrocketing freight costs. The cost of shipping a container from China to America by freighter has increased from about $800 to around $1,200 in the last year. $3,000 in Aug. 2020To more $20,000 in September of this year
Biden White House is facing a complex problem with the global supply chains bottleneck, as the president feels intense pressure to complete other important priorities.
They include bills that would enact Democrats’ domestic legislation, one to finance the government and another to increase the debt ceiling. There are also rules about enacting a broad-ranging employer Covid-19 vaccine mandate and there is competition from the right and left to stop a surge in migration at the Southern Border.
However, unlike these challenges, the federal government cannot force private businesses to move their goods faster or more efficiently.
According to the official, “The supply chain is in the hands of essentially the private industry, therefore we need to get the private enterprise involved to resolve these issues.”
Here are the anticipated attendees for Wednesday’s meeting. It is scheduled to start at 1:45 P.M.
- Gene Seroka is the Executive Director of Port of Los Angeles
- Mario Cordero Executive Director Port of Long Beach
- Willie Adams, International President, ILWU
- James Hoffa Jr., General President, Teamsters
- Greg Regan, President, Transportation Trades Department, AFL-CIO
- John Furner, President & CEO, Walmart U.S.
- FedEx Logistics President Dr. Udo Lange
- Nando Cesarone, President, U.S. Operations, UPS
- Brian Cornell is the Chairman of Target’s Board and Chief Executive Officer.
- KS Choi, President & CEO, Samsung Electronics North America
- Matt Shay, President & CEO, National Retail Federation
- Peter Friedman is the Executive Director of Agriculture Transportation Coalition
- Chris Spear is the President and Chief Executive Officer of American Trucking Association
- Ian Jeffries, President & CEO of American Association of Railroads
- Suzanne Clark, President and Chief Executive Officer, U.S. Chamber of Commerce
- Geoff Freeman is the President and Chief Executive Officer of Consumer Brands Association
- Jim McKenna President, Pacific Maritime Association CEO