In the midst of supply chain disruption, the Biden administration brokers a deal for the Los Angeles port.


In the midst of supply chain disruption, the Biden administration brokers a deal for the Los Angeles port.

President Joe Biden is set to unveil new initiatives to address the growing supply chain disruption that is stopping Americans from receiving essential products and pushing up expenses, including a deal to convert the Port of Los Angeles to 24-hour operations.

In advance of Biden’s speech on Wednesday, a senior administration official told reporters, “We’ve been hard at work identifying problems and solutions to those problems to improve the movement of products.” “Today’s commitments are significant and will go a long way toward addressing immediate issues.” Product shortages, particularly for things acquired online, have become more common in the United States, as have swiftly rising costs. The ground freight industry has been impacted by supply chain interruptions, which the government has linked mostly to the effects of the coronavirus pandemic.

Biden is expected to announce deals with labor unions to ensure there is no worker shortage to handle the new port hours, as well as deals with Walmart, FedEx, and UPS to increase delivery and processing hours, in addition to the port deal, which follows the Port of Long Beach’s earlier transition to 24/7 operations at the administration’s urging. Samsung, Home Depot, and Target have also committed to transport cargo containers out of the ports during off-peak hours.

40 percent of all cargo containers entering the United States pass through the ports of Los Angeles and Long Beach.

In June, Biden announced the formation of a task force, led by Transportation Secretary Pete Buttigieg, to identify emerging supply-chain bottlenecks.

“The first point to make about this is that growing demand is driving a lot of this,” the senior official explained. “Of course, consumers changed their spending from services to more durable items during the epidemic, as they restored homes and bought a lot of amusement and leisure activities.” Biden and Buttigieg will meet with the heads of the Ports of Los Angeles and Long Beach, union leaders and business CEOs, as well as representatives from the National Retail Federation, American Trucking Associations, United States Chamber of Commerce, and other trade groups, before making their public remarks this afternoon.

“These are significant pledges,” the senior official said, “but they’ll be most effective if every private company in the supply chain follows suit.” This is a condensed version of the information.


Leave A Reply