Despite reports to the contrary, shelves for the previous holidays are fully stocked.
That was the message delivered by President Joe Biden’s Supply Chain Disruptions Task Force on Wednesday, three days before Christmas.
“We’re making real and sustained progress at the ports — there’s increased fluidity and velocity in the goods movement,” said John Porcari, the task force’s port envoy, to the president and other White House meeting attendees. He claims that container dwell times at the ports of Los Angeles and Long Beach have been reduced by 125 percent and 140 percent, respectively, in the last month.
The improvement has been aided by ocean carrier CMA CGM opening its terminal gates 24 hours a day, seven days a week, and offering a $100/container incentive to intermodal truckers and importers who move containers off its dock within eight days. Porcari also predicts that the number of containers passing through “pop-up” inland container yards, such as the one recently launched by the Georgia Ports Authority to relieve pressure on marine docks, will increase to around 500,000 per year.
“As a result, the shelves are stocked and packages are on porches,” Porcari explained.
To keep the momentum going, the Department of Transportation will announce $230 million in Port Infrastructure Development grants on Thursday for 25 projects in 19 states to expand ports and increase cargo throughput.
“It is desperately needed and is a critical step toward repositioning America’s competitive posture in global trade,” said Chris Connor, president, and CEO of the American Association of Port Authorities, at the meeting.
FedEx [NYSE: FDX] founder and CEO Fred Smith told the task force that his company moved 100 million packages on the first weekend after Thanksgiving as a result of a rapid expansion program that added 14.4 million square feet of sorting capacity.
“The supply chain issues aren’t completely resolved, but there’s a lot of work being done to address them, and we’re optimistic that people will have a good peak season.” The majority of Santa’s products will be delivered to consumers, and retailers have done an excellent job of stocking their shelves. “We believe the peak season will be a good one.”
Tackling supply chain disruption, as well as working to lower gas prices and improve consumers’ household budgets through provisions in his Build Back Better agenda, is a three-pronged approach to keeping inflation in check, according to Biden at the meeting.
“However, shipping costs continue to rise, and as ocean carriers report profits that are nine times higher than a year ago, the President looks forward to working with Congress on bipartisan legislation to strengthen the Federal Maritime Commission.”
The Ocean Shipping Reform Act of 2021, as it is known, recently passed the House and is awaiting companion legislation in the Senate.
