Business & Investment

The White House brings together major carriers, ports to address congestion issues

If you’re driving one of the largest private vehicles or delivering to one of the country’s leading retailers, this year’s balance may feel particularly busy.

Walmart, FedEx, UPS and others are planning to make adjustments to cope with the increasing congestion at the ports on the west coast. Their efforts are part of the White House’s move to address ongoing supply chain issues. Government economists have warned that prices are rising and the supply of various products is declining as the holiday shopping season approaches.

President Joe Biden was to meet with port officials in Los Angeles and Long Beach, as well as leaders of the International Longshore and Warehouse Union, to discuss congestion and extended business hours. A White House statement today stated that the Port of Los Angeles is transitioning to 24/7 operations to assist in the movement of goods from the port. Long Beach switched to 24/7 operation about a month ago. According to the White House, this expansion means that the Port of Los Angeles has almost doubled the amount of time cargo can travel from the dock to the freeway.

“We will work with stakeholders throughout the supply chain to sprint for 90 days by the end of the year to troubleshoot and mitigate many of the bottlenecks that can be addressed quickly,” the NBC said.

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COVID-19, labor shortages, and rising consumer demand complicate the entry and exit of ships, trains, and trucks at most American ports, especially California ports. It is reported that more than 60 cargo ships moored in the Pacific Ocean are waiting for unloading. The port of Sabana on the east coast has a similar minor problem.

Carriers and retailers are committed to helping deal with the growing backlog of cargo.

The commitments announced today are:

  • Wal-Mart, the country’s largest retailer, has promised to significantly increase nighttime use and predicts that throughput can be increased by up to 50% in the coming weeks.
  • UPS is committed to increasing the use of 24/7 operations and enhancing data sharing with ports. This allows you to move up to 20% more containers from the port.
  • FedEx is working to combine increasing night time with changing truck and rail usage to increase the amount of containers moving from the port. These changes could double the amount of cargo that can be moved from the port at night.
  • Samsung is committed to moving nearly 60% more containers from these ports by operating 24/7 for the next 90 days. 72% of US homes have at least one Samsung product, from appliances to appliances.
  • The Home Depot promises to move up to 10% of additional containers per week during the newly available off-peak port hours at Los Angeles Harbor and Long Beach.
  • Targets, which currently move about 50% of their containers at night, have promised to increase their volume by 10% over the next 90 days to reduce congestion at the port.

The White House brings together major carriers, ports to address congestion issues The White House brings together major carriers, ports to address congestion issues

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