President Biden announced today that, after discussions with the White House, the Port of Los Angeles will begin operating on a 24-hour basis, hoping to alleviate some of the cargo backlog that has overwhelmed West Coast ports and put strain on U.S. industries.
Today I’m announcing that the Port of LA will begin operating around the clock 24/7 to make sure Americans can get the goods they need.
My Administration is working around the clock to move more goods faster and strengthen the resiliency of our supply chains.
— President Biden (@POTUS) October 13, 2021
As the New York Times reported, the Port of Long Beach has already been operating 24 hours per day.
During his speech this afternoon, President Biden said that Walmart has committed to moving merchandise throughout its supply chain on a 24-hour schedule, as well, and the New York Times reported that the Biden Administration has encouraged other states to license more truck drivers to speed the delivery process along.
“You can think of that as basically opening the gates,” U.S. Secretary of Transportation Pete Buttigieg told NPR. “Next, we’ve got to make sure that we have all of the other players going through those gates, getting the containers off of the ship so that there’s room for the next ship, getting those containers out to where they need to be. That involves trains, that involves trucks, so many steps between the ship and the shelves.”
This is a good step, but it’s not enough to fully alleviate the issues that manufacturers, suppliers, distributors and end-buyers have been dealing with. Yes, the ports have been backed up, but so many other supply chain issues stem from overseas locations that the U.S. government has little or no influence over.
Tune in as I deliver remarks on efforts to address global transportation supply chain bottlenecks. https://t.co/Uabftrq0V7
— President Biden (@POTUS) October 13, 2021
China’s shipping and manufacturing hubs, for example, have been affected by strict lockdown rules that have shut down factories, forcing delayed shipments and canceled orders. And China is now in the midst of an energy crisis that’s forced some factories to ration electricity or partially shut down.
Also, once products are unloaded at U.S. ports, there are still issues with transportation services inland. According to NPR, the White House is working with FedEx and UPS to address that problem, with both companies taking steps toward 24-hour operations.
Still, with logjams at California ports shattering records, this is at least a step in the right direction. Shoppers and businesses shouldn’t let out a full sigh of relief just yet, as Jennifer McKeown, head of global economics service at Capital Economics, told the Times that “things are likely to get worse before they get better,” and that product shortages could continue into mid- or late-2022.
