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How Target, Home Depot, UPS, FedEx plan to ease U.S. port congestion By Reuters

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© Reuters. FILE PHOTO – The congestion in the Port of Los Angeles can be seen in San Pedro (California, U.S.A), September 29th, 2021. REUTERS/Mike Blake/File Photograph

By Richa Naidu

(Reuters] – Wednesday’s President Joe Biden called for an end to supply chain delays that could affect the crucial U.S. holiday shopping season.

The White House announced that a port in Los Angeles would join Long Beach (California) to increase around-the clock operations.

Retailers, courier companies, and consumer goods manufacturers – who make the majority of their annual revenues in the final quarter of each year – lent their support to the shift. Biden met virtually and promised to step up operations.

Attendees included top executives from Walmart, Target (NYSE:), FedEx (NYSE:), UPS, Samsung  and  Home Depot.

WALMART

According to the world’s largest retailer, it will increase the number of nights spent at ports and estimate that throughput could rise by up to 50% in the coming weeks.

“As the ports move towards 24/7 operations, that’s just going to help increase our overall effectiveness and increase the volume of merchandise that we can move through those ports and get to customers,” a spokesman said.

TABLE

Target, which transports about half of its containers overnight, has promised to raise that figure by 10% in the next 90-days to alleviate congestion at the ports

The big-box retailer said it “fully supports investments to increase efficiency at our nation’s ports,” including expanding infrastructure and increasing data sharing across industries to help with port traffic control.

HOME DEPOT

According to the company, it will ship an additional 10% of containers each week in the new off-peak hours at Los Angeles and Long Beach Ports.

SAMSUNG

Samsung (KS) stated that it will ship 60% more containers from these ports if it operates 24/7 for the next 90-days.

UPS

UPS Delivery announced that UPS would use more 24/7 operations, and improve data sharing with port authorities. UPS could move as many as 20% more containers.

FEDEX

FedEx indicated that they would use a combination of increased nighttime hours, changes in trucking and rail usage to raise the container volume it moves from ports.

According to the company’s estimates, these changes would double the amount of cargo the port moves at night.

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