Stock Groups

Biden administration to spend more than $4 billion on aging U.S. ports


An aerial view of the COSCO container ship unloading its cargoes at Los Angeles Port on October 26th, 2021. This is San Pedro in California.

Visual China Group | Visual China Group | Getty Images

WASHINGTON – The Biden administration outlined several initiatives on Tuesday aimed at addressing immediate supply-chain challenges and other disruptions affecting global commerce.

A number of senior officials from the Administration spoke anonymously to describe the plan. Accordingly, the administration plans to begin working with the U.S. Army Corps of Engineers within the next 60-days. The work will include $4 billion of construction work on coastal ports, inland watersways and other facilities that are eligible for U.S. Army Corps of Engineers.

A senior administration official stated that the plan would prioritize upgrades of obsolete inspection facilities worth $3.4 billion to make international trade easier through both the north and south borders.

The person said that this was a much-needed infrastructure upgrade and had been a source of bottlenecks in the past.

The world’s supply chain – already exacerbated by the pandemic – is continuing to bear the brunt of surging consumer demand, labor shortages and overseas manufacturing delays, which has led to higher transportation costs and inflation.

On Wednesday, President Joe Biden will visit the Port of Baltimore to discuss how the $1 trillion infrastructure bill passed by lawmakers on FridayIt will strengthen supply chains and improve ports.

Although the bipartisan infrastructure bill passed in August, it sat inactive in the House for several months. It will fund massive upgrades of America’s roads and bridges as well as airports, ports, railways, and other transportation systems.

Biden attended the G-20 annual forum, which was held in Washington. The G-20 refers to 20 countries that make up more than 80% of global GDP and 75% of international trade.

While at the G-20, Biden convened a summit alongside leaders from 14 other countries and the European Union calling for their unbending commitment on supply chain issues.

“Supply chains are something that most of our citizens never think twice about until something goes wrong. During this epidemic, there have been delays and backlogs in goods, from cars to electronics to shoes to furniture. Biden said in his debut at the G-20 since becoming president

“Ending a pandemic is key to unlocking all the disruptions we are facing,” he stated. However, we must act now with our private sector partners, in order to decrease the backlogs we are facing.” he stated.

The pandemic is a reminder that there are many vulnerabilities within the system. He said it’s impossible for us to return to “business as usual.”

A plan was unveiled by the Biden administration last month to run operations 24/7 at the California ports of Los Angeles and Long BeachThis is the busiest port complex in the country.

The twin California ports that account for 40% of the sea freight into the United States were soon announced new fines on carriers in order to abate the intensifying logjam of cargo ships

Beginning Nov. 1, trucks moving offloaded containers will be fined for up to nine days. Three days will be given to containers that are scheduled for rail transport. These deadlines will apply to containers that are scheduled for rail transport. Carriers will be subject to $100 per lingering container each day.