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Trucker pay may need to rise to resolve supply chain woes, U.S. regulator says -Breaking

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WASHINGTON, (Reuters) – Wages for truck drivers and warehouse workers could need to increase to solve shipping backlogs, according to the Chairman of the U.S. Federal Maritime Commission. This commission oversees ocean transport.

U.S. Federal Maritime Commission Chairman Daniel Maffei spoke out at an open meeting. He said that a lack in warehouse space or truckers to help move goods was at least partially to blame. This is where consumer goods vessels are left stranded outside of ports, as there is not enough space to unload and dock.

He said that although there is more work in these areas, it’s still not sufficient. If wages don’t rise, I can’t imagine how these workers could be found.

Due to the recent scarcity in raw materials, shipping delays and shuttered factories in Asia, retailers have had difficulty bringing products to the United States in the lead-up to peak season.

Kristen Monaco (NYSE:) is director of FMC’s Bureau of Trade Analysis. According to Monaco, truck drivers generally are not compensated for time spent waiting. Long waits can also hurt productivity.

It’s like having the same amount of workers because they aren’t making their time. This is called inefficiency. She said that the inefficiency is not being paid at present, so there are very few economic incentives to correct it.”

Grace Wang (director of competition analysis at the FMC) presented data that showed a drastic drop in agricultural exports amid shipping backups. She also saw a 38% decline in cotton exports during July 2019, 2021 and 2019. Maffei called it “concerning.”

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