Personal Finance

Port of Los Angeles Will Operate 24/7 as US Aims to Alleviate Supply Chain Bottlenecks: National

The White House said Wednesday it helped negotiate a deal for the Port of Los Angeles to become a 24-hour, seven-day-a-week operation as part of an effort to ease supply chain bottlenecks. and move the stranded container ships they are driving. higher prices for American consumers.

President Joe Biden planned to discuss the deal during a speech Wednesday afternoon on supply chain issues that have hampered economic recovery from the coronavirus pandemic. The supply chain problem is closely related to the broader inflation challenge facing Biden.

Ports in Los Angeles and Long Beach, California, account for 40% of all shipping containers entering the U.S. As of Monday, there were 62 ships docked at the two ports and 81 waiting to dock and unload, according to the Marine Exchange of Southern California.

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Commitments from the Los Angeles port operator, longshoremen and several of the nation’s largest retail and shipping companies are expected to help ease the backlog. Walmart, FedEx and UPS have committed to offloading during off-peak hours, making it easier for the Port of Los Angeles to operate nonstop and reducing backlog. The Port of Long Beach has been operating 24 hours a day for seven days for about the last three weeks.

Before his speech, the Democratic president had planned to hold a virtual round table with the heads of Walmart, FedEx Logistics, UPS, Target, Samsung Electronics North America, Teamsters Union and the United States Chamber of Commerce, among other groups.

Republican lawmakers have frequently criticized Biden’s $ 1.9 trillion coronavirus aid package for driving higher prices. A recent analysis by investment bank Goldman Sachs estimates that “limited supply goods” account for 80% of this year’s inflation overshoot, yet political criticism continues to sting as house prices and oil add to inflationary pressures.

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Global supply chain problems hit North American consumers hard

Global supply chain problems hit North American consumers hard

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Senate Republican Leader Mitch McConnell has made inflation one of his central criticisms of Biden, a sign that keeping prices in check could be essential for Democrats trying to keep congressional seats in next year’s election. .

“Democrats’ inflation is so bad that even though the average American worker has received a pay raise of several percentage points in the last year, their real purchasing power has dropped,” McConnell said in a Senate speech last week. pass. “Even the dollar stores are having to raise their prices. Ask any American family about their latest trips to the grocery store, gas station, or toy store. God forbid if they’ve had to get into the real estate market or the auto market at any time lately. “

The Biden administration has argued that higher inflation is temporary. However, supply chain problems have persisted for months after the economy began to reopen and recover after vaccines reduced many of the risks of the pandemic.

Economists expect Wednesday’s consumer price report to show prices rose 5.3 percent from a year earlier, significantly above the Federal Reserve’s 2 percent target. Atlanta Fed Chairman Raphael Bostic said in a speech Tuesday that he no longer calls inflation “transitory – as he expects this current” episode “of inflation to last until 2022 or more.

© 2021 The Canadian Press