It’s not news that the Port of Los Angeles and Port of Long Beach, two major US ports on the West Coast, are seeing an unprecedented port congestion since July. But, with even mainstream media looking at America’s creaking supply chain, the Biden Administration is now taking swift action to deal with this issue before the Christmas holiday.
Earlier this week, President Biden met with the directors of the Port of Los Angeles and the Port of Long Beach to outline a plan going forward in dealing with the dozens of ships waiting to berth. The main course of action discussed was to increase operations around the clock. “This is the first key step toward moving our entire freight transportation and logistical supply chain nationwide to a 24/7 system,” Biden said.
In addition to the ports operating on a 24/7 basis, several shippers and retailers are also being asked to follow this trend as Biden directs the US supply chain to alleviate the crisis. This includes private sector businesses from trucking to freight companies to not only “get through this immediate bottleneck, but to address the long standing weaknesses in our transportation supply chain that this pandemic has exposed.”
Here is a list of companies taking swift action following Biden’s speech:
- Walmart: Will increase use of nighttime hours
- UPS: Will operate on a 24/7 basis and enhance data sharing with ports
- FedEx: Will increase nighttime hours and focus on trucking and rail use
- Samsung: Will operate on a 24/7 basis over the next 90 days and shift 60% containers out of LA/LB ports
- Home Depot: Will move 10% more containers in LA/LB ports during off-peak hours
- Target: Will move 10% more containers during off-peak hours.
With economic recovery heavily reliant on American consumers, supply chain issues have been magnified under the lens of the American public. Although in the short term, the public won’t need to worry about price inflation, here’s what industry experts agree on.
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