Political

Biden Announces Multi-Industry ’90-Day Sprint’ to Disentangle Clogged Ports Before Christmas

President Biden on Wednesday announced agreements with the biggest U.S. port, retailers, and freight haulers to repair some kinks in the twisted global supply chain which have fed inflation, brought on random shortages of products, and threatens to disrupt holiday consumer spending. Analysts referred to as it a good first step however stated there’s only so much a U.S. president can do unsnarl a global logistical mess involving rampant consumer demand running headlong into Asian factory issues, shipping jams and container shortages, and pandemic-related labor issues all through the supply chain.

The Port of Los Angeles agreed to join its sister port, Long Beach, and begin working 24/7, the White House stated, whereas Walmart, FedEx, UPS, Target, and Home Depot committed to sending more drivers to the ports in the expanded hours to take away shipping containers clogging the ports and get the merchandise to shelves. Labor unions agreed to provide the employees. The White House described the effort as a “90-day sprint” to clear a path for cargo.

“Today’s announcement has the potential to be a game changer,” Biden stated. “I say potential because all of those goods will not move by themselves. For the positive impact to be felt all throughout the country, and by all of you at home, we want major retailers who order the products and the freight movers who take the products from ships to factories and to stores to step up as well.”

The global supply chain has been stressed all through the pandemic, exposing weak links within the U.S., together with outdated ports that function a lot fewer hours than those in Europe and Asia. The upgrades Biden has been working to implement for months will not help get toys on shelves before Christmas.

“This can be a good first step, though it’s quite astonishing, and a measure of how severe that is, that it apparently takes the personal involvement of the president of the USA to get this obvious measure carried out,” Bjorn Vang Jensen, vice president of global supply chain at Denmark’s Sea-Intelligence ApS, tells The Wall Street Journal.

“The bottom line is that there are challenges — due to the demand, due to the systemic issues — that have an effect on the supply chain,” Federal Maritime Commission chairman Dan Maffei tells Politico. “They aren’t going to cancel Christmas but are possibly going to make it so that you can’t get the precise toy you want for your children.”

Source: Biden announces multi-industry ’90-day sprint’ to unsnarl clogged ports before Christmas

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