White House Aims to Ease Supply Chain Issues on West Coast

The White House, major retailers, shippers, and shipping unions came together on Wednesday to announce a coordinated effort to tackle the massive supply-chain issues augmented by significant delays at two major California ports.

President Joe Biden announced his plan to ease the delays at the ports of Long Beach and Los Angeles including the expansion of propose expansion of 24/7 operations at the ports to offload the goods from the container ships.

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FedEx, UPS, Walmart, Home Depot and others said they were expanding hours in an effort to assist the transports of goods. Meanwhile, the International Longshore and Warehouse Union confirmed its members will work extra shifts at the ports in Long Beach and Los Angeles. Together, the two ports account for approximately 40% of the shipping containers entering the United States.

Despite the increase in labor, it’s unclear how quickly the backup can be eased. As of last week, a reported 60 container ships were waiting off-shore to unload. Prior to the pandemic, it was unlikely to find more than one ship waiting.

The issue of the supply chain is a concern for businesses, especially ahead of the holiday season. Supply chain issues are also contributing to the inflation in the prices of consumers goods.

 

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