Biden Announces Measures at Major Ports to Battle Supply Chain Woes (Published 2021) (2024)

Politics|Biden Announces Measures at Major Ports to Battle Supply Chain Woes

https://www.nytimes.com/2021/10/13/us/politics/biden-port-los-angeles-supply-chain.html

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The Port of Los Angeles will join the Port of Long Beach in operating 24/7 as the administration struggles to address a problem that is boosting inflation.

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Biden Announces Plan to Address Supply Chain Shortages

President Biden said the Port of Los Angeles would move toward 24/7 operations, joining its counterpart in Long Beach, in an effort to curb product shortages.

Today, we have an important announcement that we’ll get things you buy to you, to the shelves faster. After weeks of negotiation and working with my team, and with the major union retailers and freight movers, the Ports of Los Angeles, the Port of Los Angeles announced today that it’s going to begin operating 24 hours a day, seven days a week. This follows the Port of Long Beach’s commitment to 24/7 that it announced just weeks ago. By staying open seven days a week through the night and on the weekends, the Port of Los Angeles will open over 60 extra hours a week, will be open. In total, that will almost double the number of hours that the port is open for business from earlier this year. Walmart, our nation’s largest retailer, is committing to go all in on moving its products 24/7 from the ports to their stores nationwide. Specifically, Walmart is committing as much as a 50 percent increase in the use of off-peak hours over the next several weeks. Additionally, FedEx and UPS, two of our nation’s biggest freight movers, are committing today to significantly increase the amount of goods they’re moving at night. And other companies are stepping up as well. They include Target, Home Depot and Samsung, that have all committed to ramp up their activities that utilize off-peak hours at the ports.

Biden Announces Measures at Major Ports to Battle Supply Chain Woes (Published 2021) (1)

By Ana Swanson,Jeanna Smialek and Jim Tankersley

WASHINGTON — President Biden announced Wednesday that the Port of Los Angeles will operate around the clock and major companies including Walmart, UPS and FedEx would expand their working hours as his administration struggles to relieve growing backlogs in the global supply chains that deliver critical goods to the United States.

Product shortages have frustrated American consumers and businesses and contributed to inflation, which threatens to hurt the president politically. And the problems appear poised to worsen, enduring into late next year or beyond and disrupting shipments of necessities like medications as well as holiday purchases.

Mr. Biden said Wednesday that the moves would almost double the number of hours that the Port of Los Angeles is open for business, in an effort to resolve a logjam that has slowed the shipment of manufactured goods from Asia. He praised the role of the International Longshore and Warehouse Union in stepping up to work extended hours and also urged the passage of an infrastructure bill that would make significant investments in ports, roads and factories for the longer term.

“In order to be globally competitive, we need to improve our capacity to make things here in America while also moving finished products across the country and around the world,” he said. Samsung, The Home Depot and Target also committed to moving more products at night to help ease congestion at the Port of Los Angeles and the nearby Port of Long Beach, which together handle 40 percent of the shipping containers imported into the United States, the White House said.

But it is unclear how much the White House’s efforts can realistically help. The blockages stretch up and down supply chains, from foreign harbors to American rail yards and warehouses. On Wednesday, 25 container ships were anchored in the Port of Los Angeles waiting to unload their cargo, and the average anchorage time had stretched to more than 11 days. Analysts say some of these issues are worsening, and may last into late next year or even 2023.

Michael Farlekas, the chief executive of supply chain firm E2open, said that extended hours would help, but “I don’t think that’s going to materially move the needle. Some of the issues are just basic supply and demand issues.”

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Biden Announces Measures at Major Ports to Battle Supply Chain Woes (Published 2021) (2024)
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