Biden hopes fines on lingering cargo ships ease congestion at major U.S. ports
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Waiting outside of the Ports Los Angeles and Long Beach, container ships are waiting for their unloading on October 13, 2021.
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WASHINGTON – The Biden administration is hopeful new fines imposed on carriers at the nation’s busiest port complex will abate the intensifying logjam of cargo ships.
Los Angeles Ports and Long Beach have announced Monday that container moves by truck will take place for 9 days and by rail, 3 days respectively.
Conforming to these deadlines carriers will be charged $100 per lingering containers each day beginning Nov. 1.
Mario Cordero, Port of Long Beach executive director explained that terminals have run out of room and there will be more space for containers on the ships at anchor. in a statementAnnouncement of the measure.
Jen Psaki White House press secretary told reporters Tuesday the administration is continuing to “press on ways and address issues within the supply chain,” adding to the fact that Biden intends to meet with G-20 leaders to talk about disruptions in global commerce.
Psaki stated that “Both ports move 19% more container than the 2018 same time point, which is the previous record. The ports continue to exceed the 2018 record of 17.5,000,000 containers processed,”
An earlier in the month, the Biden administration presented a plan to run operations 24/7 at the ports of Los Angeles and Long BeachThese are 40% of the sea freight that enters the United States.
The Port of Los Angeles will open its doors to cargo trucks on Wednesday, October 13, 2021, in San Pedro.
Getty Images| Los Angeles Times | Getty Images
While the two California ports will be open 24 hours a day, they won’t solve the problem of the growing backlog.
Awi Federgruen is a Columbia University Business School professor and a supply chain management specialist. She explained that “it’s more than just fixing ports. That’s only one part of a very long supply chains.”
It will not solve the whole problem by extending California’s port hours for 60 more hours or reducing the unloading period to 25%. Federgruen, the Columbia Business School’s Decision, Risk and Operations division chair, stated that many factors are interrelated.
It is the nation’s tangled supply chain that bears the brunt from surging consumer demand and high transport expenses.
The situation is worsening as looser public health measures, coronavirus vaccinations and increased celebrations are expected to increase this year than 2020.
Federgruen said, “We haven’t seen anything of this magnitude for quite some time.” He said, “If this continues, the consumer will experience enormous inflation along with being unable to purchase goods.”
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