Biden to discuss supply chain crisis with US ports and carriers
Last edited Wed Oct 13, 2021, 08:05 AM - Edit history (1)
Source: CNN
New York (CNN Business) The US government is stepping up its efforts to relieve the supply chain nightmare that has led to shortages of some goods, higher prices for consumes and now threatens to slow the economic recovery. The White House will work with companies and ports on a "90-day sprint" to alleviate bottlenecks, according to a senior administration official. Some will start working 24/7 to address the backlogs.
The Port of Los Angeles will move to 24/7 service, bringing it into line with operations at the Port of Long Beach, which is already working on a 24/7 schedule, the official said. Those two ports handle 40% of container traffic in the US. Around the world, ports are congested as a result of the rapid rebound in demand for commodities and goods as much of the global economy has recovered from the pandemic. Shipping costs have soared, and companies wanting to move goods around are struggling because there just aren't enough ships or containers available. All the while prices are going up for consumers.
"To be clear, no matter what we do in the short term, we ultimately have an issue of capacity of our ports, our freight rail, our roads and bridges. Put simply much of the shipping and freight infrastructure was built decades or even generations ago, and Americans are importing and [exporting] far more than we did back then," the official said. "The federal government will be a strong and willing partner in this effort in the near term, but also in rebuilding a better system for the 21st century."
President Joe Biden will meet with senior officials and stakeholders to discuss collective efforts to address global transportation bottlenecks and then deliver remarks on Wednesday. Port operators, truckers' associations, labor unions and executives from Walmart (WMT), FedEx (FDX), UPS (UPS) and Target (CBDY)will attend the talks. The supply chain is essentially in the private sector so we need the private sector to step up to help solve these problems," the senior official said, previewing the announcements.
Read more: https://www.cnn.com/2021/10/13/economy/supply-chains-biden-ports/index.html
Heard some of the details of this on the local news radio early this morning. What's going on in LA is a mess with over 100 loaded cargo ships in line to unload at that port.
From what I understand, since all those containers are now tied up, there are few if any "empties" left to go back and get more stuff. So the backlog needs to be cleared out first, get the empty containers back to their "home" locations, and then go from there.
The logistics sort of reminded me of what happened after 9/11 when there was a nationwide "ground stop" with every aircraft (but authorized military doing CAP) out of the skies and that lasted from that Tuesday of 9/11 until around Friday 9/14 when "the system" was brought back online and they had to go through getting planes moving to their "home" locations to have room for others to get to their "home locations".
I know they are currently staring at "private industry" to help resolve it but there is that staffing issue going on too (along with a still-apparent lack of impetus for paying people to do it). IMHO, the U.S. military has some amazing logistics handling and I wouldn't be surprised if somehow they could be involved in coming up with plans and/or transport - at least to help clear the backlog.
Tetrachloride
(7,728 posts)Two of my family and myself were in the transportation industry. Waiting is not in our DNA
JohnSJ
(91,965 posts)Tetrachloride
(7,728 posts)and the leaders of the industry and political bodies to not wring their hands.
Leaders have to show up.
Housing and pay.
I became a valued member of my company because i showed up, could read a map and valued safety first.
JohnSJ
(91,965 posts)the industry leaders will argue there is a shortage of workers, because that is what they are doing right now in other industries
Trumps trade wars along with the mishandling of the pandemic were a contributing factor, and add to that the increase in energy prices, unless we can get that under control, 2022 is going to be very difficult
https://www.democraticunderground.com/111691521
BumRushDaShow
(127,318 posts)was that many of the driving schools were shut down during the pandemic. So those are slowly coming back online but it can take weeks to months to get brand new drivers up and running, certified, and licensed.
In fact I *finally* found the article/pic of Biden behind a truck-driver-in-training operating a simulator in MI - https://www.freep.com/story/news/politics/2021/10/05/joe-biden-michigan-howell-infrastructure-whitmer-child-care-congress/6001831001/
I believe the simulators were being maintained by the union.
Many of the drivers were/are boomers who are retiring (and I expect a chunk may have been infected by COVID-19 and succumbed or are too ill post-recovery to do any long-haul driving/lifting)... and the younger generations either couldn't or wouldn't get into that business. DU has a number of truckers who post regularly who either currently work for companies or are self-employed, and I know it's not cheap to buy and maintain the cab and insurance, etc.
Tetrachloride
(7,728 posts)many a trucker is poor. my oldest brother was one
BumRushDaShow
(127,318 posts)and I remember he was even transporting "government cheese" back in the early '80s, and yeah we saw him with the 2lb blocks -
bucolic_frolic
(42,678 posts)It was the prudent thing to do. The rebound was a surprise on the upside. So yes everyone wants to be resupplied all at once.
Not Biden's fault, but he has to deal with it.
OldBaldy1701E
(4,968 posts)How long before we start reading stories about bribes being paid to port authorities to allow a cargo of expensive luxury items in before a ship filled with things that fall under 'necessary'? With the holidays coming up, I am willing to place a few bets.
Bayard
(21,806 posts)Instead of voting for the infrastructure bill.