WASHINGTON সরবরাহ As supply chain disruptions around the world threaten the U.S. holiday shopping season, President Joe Biden will unveil a plan Wednesday to try to reduce delays along the West Coast at Long Beach and Los Angeles ports. Operation
At the heart of this plan is the commitment of some of the country’s top retailers and shippers to increase overnight and off-hour operations in Long Beach and Los Angeles.
FedEx, UPS, Walmart and Home Depot will announce their extended time operation plans during a virtual meeting with Biden on Wednesday, senior administration officials briefed reporters on Tuesday night.
Officials have not been named to discuss private sector commitments that have not yet been made public.
The port of Los Angeles will announce Wednesday that it is moving into 24-7 operations, following a similar transformation by the port of Long Beach in September this year, officials said.
The ports of Long Beach and Los Angeles together account for about 40% of shipping containers entering the United States.
Another key partner in the plan is the powerful International Longshore and Warehousing Union, or ILWU, which represents thousands of workers in ports. ILWU has previously stated that its members would be willing to work in these additional shifts.
White House officials say “port operators” will be responsible for paying longtime residents and indeed keeping ports open for long periods of time.
For the Biden administration, increasing night operations in West Coast ports, as well as freight railways, warehouses and shipping hubs, represents the fastest and most efficient way to remove goods from waiting container vessels and reduces stress on the entire supply chain. .
But simply unloading more cargo at ports will do little to solve problems plaguing U.S. supply chains while goods travel more internally. The United States is currently in a trucking crisis, with the shortage of long-distance truck drivers so severe that some companies are looking for truckers abroad.
The condition of California ports is dire.
Oct. In October, in the open water outside Los Angeles and Long Beach, about a dozen container vessels were waiting to dock and unload their goods. Before the epidemic, it was unusual to even wait for a ship to slip.
In the aerial view, the container ships are anchored by the Port of Long Beach and Los Angeles as they await offload off September 20, 2021 near Los Angeles, California.
Mario Copper | Getty Images
“Ordinary people and businesses are feeling the effects of these delays and setbacks. It makes it challenging to get products on the shelves and get the products to the doorstep.”
Experts say the massive disaster at the California port complex is the result of a combination of both domestic and global factors.
Among these are the epidemic-related demand for sustainable products in the United States, an old domestic freight and rail system, the closure of factories in places like China and Vietnam, and the lack of skilled longshoremen on the West Coast.
Barriers to ports have created a domino effect in the larger economy.
Consumers are advised to buy Christmas gifts in October, for example, if they want to be sure to get a certain thing.
Among retailers, both large and small companies are having an extremely difficult time securing cargo containers for transporting goods from Asia to the United States, where the lion’s share of consumer goods are produced.
Skyrocketing costs are also part of the problem. In the past year, the cost of shipping a container by freight from China to the West Coast has risen from about 3,000 3,000 in August 2020 to more than $ 20,000 in September this year.
The disruption of the global supply chain has created a uniquely complex challenge for the Biden White House, at a time when the president is under intense pressure to achieve other major priorities.
These include the Democrats’ bill to legislate in Congress, a bill to fund the government, another to increase the limit, another to enact a broader employer, the Covid-1 vaccine, the upcoming rules, and rival left-wing pressure and increased immigration rights on the southern border. .
Contrary to these challenges, however, the federal government cannot force private companies to move products more quickly or efficiently.
“The supply chain is largely in the hands of the private sector, so we need to move forward with the private sector to help solve this problem,” the official said.
Below are the expected participants in Wednesday’s meeting, scheduled to begin at 1:45 p.m.
- Jean Seroka, Executive Director, Port of Los Angeles
- Mario Cordero, Executive Director, Port of Long Beach
- Willie Adams, International President, ILWU
- James Hofa Jr., General President, Teamsters
- Greg Reagan, President, Department of Transportation Commerce, AFL-CIO
- John Ferner, President and CEO, Walmart US
- Dr. Udo Lange, President and CEO, FedEx Logistics
- Nando Cesaron, President, US Operations, UPS
- Brian Cornell, Board Chairman and CEO, Target
- KS Choi, President and CEO, Samsung Electronics North America
- Matt Shey, President and CEO, National Retail Federation
- Peter Friedman, Executive Director, Agricultural Transport Alliance
- Chris Spear, President and CEO, American Trucking Association
- Ian Jeffries, President and CEO, American Association of Railroads
- Susan Clark, President and CEO, US Chamber of Commerce
- Geoff Freeman, President and CEO of the Consumer Brands Association
- Jim McKenna, President and CEO, Pacific Maritime Association