WASHINGTON, D.C. — President Joe Biden says his administration is stepping up its efforts to address global transportation supply chain bottlenecks.
Biden will give remarks about these efforts in a speech in East Room at 2:20 p.m. ET Wednesday.
Before the speech, the White House said the efforts included new public and private-sector commitments to help the nation’s transportation supply chains – ports, rail, trucking, and logistics – meet strong demand.
As the U.S. recovers after the COVID-19 epidemic and all the economic turmoil it brought, many of the businesses that make up its supply chain have been struggling to keep up. The coronavirus, which has caused disruptions in key transport and logistics nodes like ports, has also prompted an increase in e-commerce.
These issues have caused a rise in prices, making it difficult for Americans buy countless products.
Wednesday’s announcement by the administration states that it will meet with port leaders, union leaders and business leaders to make a series of commitments. These commitments include moving goods faster and strengthening the resilience of our supply chains. This includes moving to 24/7 operations at Los Angeles and Long Beach. These two ports, which are the entry point for 40% of container traffic to the U.S., are poised to record new heights in container traffic this fiscal year.
According to the International Longshore and Warehouse Union, its members are open to working extra shifts to increase their capacity to clear backlogs.
Next, the administration wants private companies along the supply chain and other businesses to make their operations available 24/7. Officials have confirmed that six large companies have already indicated they will extend their hours in order to move more cargo from docks to allow ships to arrive at shore quicker. Target, UPS, FedEx and Samsung are some of those companies.
- Walmart has committed to increasing its night-time hours substantially and projects that they could increase throughput up to 50% in the coming weeks.
- UPS has committed to a greater use of 24/7 operations, and improved data sharing with ports. Officials believe this could enable UPS to move as many containers as 20% from ports.
- FedEx has committed to working with railroad and trucking companies to increase the number of containers it moves from ports.
- Samsung has committed to moving nearly 60% more containers from these ports through its 24/7 operation over the next 90 days.
- The Home Depot has committed to moving up to 10% more containers each week during the new off-peak hours at Long Beach and L.A. ports.
- Officials at Target claim that Target is moving approximately 50% of its containers at night and has promised to increase that number by 10% over the next 90 days in order to ease congestion at the ports.
The administration estimates that there will be over 3500 more containers per week across these six companies from now until the end of the calendar year.
These boxes will contain toys, appliances and bicycles that Americans bought online, as well as pieces and parts that were sent to U.S. factories to be assembled by our workers.
According to the administration, it will continue to collaborate with all stakeholders to make these hours more accessible to more businesses and to move the rest of its supply chain towards 24/7 operations.