So-called commander-in-chief Joe Biden is racing to clear bottlenecks in the country’s complicated shipping distribution chain; this promises to interrupt the festive period for millions of American citizens.
Time is Running out!
With only over ten weeks before Christmas, the U.S. government is relying largely on port authorities, transportation services, and labor groups to offload ships and transfer merchandise to facilities across the country at all hours of the day and night.
Biden will speak with leading companies digitally on Wednesday before giving a speech about the government’s efforts to alleviate bottlenecks. In the following months, Biden’s supply chain issue might cause significant economic and political instability.
Empty food shelves might jeopardize the government’s economic growth initiatives and stoke customer skepticism. With supply chain issues projected to endure much longer than many authorities and analysts predicted just a few months earlier, recollections of a poor Christmas might linger well into 2022.
My source is my husband & his peers. They have decades in the Supply Chain industry. They are executives. Leaders in the industry. My husband is a VP of Global Supply Chain.
They have never seen this kind of crisis-backlog of orders, shipping, logistics. It is collapsing.
— Gretchen Smith LETS GO BRANDON (@cov_Gretchen) October 11, 2021
Retailers are growing concerned Washington’s attempts to salvage the crucial holiday shopping season will be ineffective at this point.
“There will be no political interference; there may not be human intervention since this issue will now linger into next year,” said Steve Pasierb, chairman and chief executive of the Toy Union.
Despite appeals from some business groups for more government funds, the Biden government placed much of the onus on the private industry to resolve the kinks.
According to senior government officials, the administration’s regulation of ports and shipping corporations is minimal. Instead, it used its clout to bring together key actors across the supply chain and exert pressure on them to extend hours of operation.
“Because the distribution network is fundamentally in the control of the private sector,” a senior government official told journalists on Tuesday, “we need the business sector to step in and help fix these difficulties.”
Will the Measures Work?
The White House will declare on Wednesday the Port of L.A. will be open 24 hours a day, seven days a week, following the example set by the Port of Long Beach last month.
As per the Marine Exchange of California, those California ports had the greatest congestion in the nation, with 80 ships ready to dock as of Tuesday night.
— 10 Tampa Bay (@10TampaBay) October 13, 2021
FedEx, UPS, Walmart, Samsung, Target, as well as Home Depot, will all start sending trucks to ports at night and for longer hours in order to deliver more shipping containers per week. At the White House meeting, labor groups will pledge to provide the required workers.
Officials in the government realize those actions alone will not be enough to clear the backlog, which has only gotten worse in recent months. They’re hoping the statements on Wednesday will motivate more stores, long-haul truckers, and railway companies to act until the supply chain network is running at full capacity.