President Biden Addresses Supply Chain
As the supply chain situation continues to worsen, you wonder if the crisis has finally hit a tipping point, especially seeing as though President Biden weighed in:
“This is not called a supply chain for nothing. If federal support is needed, I will direct all appropriate action. Now, if the private sector doesn’t step up, we’re going to call them out and ask them to act because our goal is not only to get through this immediate bottleneck but to address the longstanding weaknesses in our transportation supply chain that this pandemic has exposed.”
Biden also announced that the Port of Los Angeles will follow its neighbor, Long Beach in keeping the doors open 24/7. Nearly 40% of all containers imported to the United States come through these ports.
The President met with executives from LA/Long Beach ports as well as from the Pacific Maritime Association, National Retail Federation, and the American Trucking Association. Biden’s Press Secretary, Jen Psaki, added the following:
“What we can do is use every level at the federal government’s disposal to reduce delays, to ensure that we are addressing bottlenecks in the system, including ports and the need for them to be open longer hours… and we can continue to press not only workers and unions but also companies to take as many steps as they can to reduce these delays.”
In the private sector, businesses are offering discounts well ahead of Black Friday to stretch out the holiday shopping season in hopes of alleviating demand. UPS, FedEx, and Walmart are also planning to up their operations to expedite goods reaching their destination. Estimates indicate this will add 3,500 containers into circulation each week through next year.
While all of this is no guarantee, the problem has gotten more real now than ever, especially with the holidays around the corner. In addition, the White House’s involvement may also stem from the fact that ‘inflategate’ won’t go away. The consumer price index rose over 5% in September and rattled supply chains are the main cause of increased prices. Regardless, if the shelves are empty come the holiday season, this won’t be good for anyone, from private companies and politicians to families.