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Los Angeles, Long Beach ports to open 24X7 to tackle shipping backlog

14 Oct '21
2 min read
Pic: Ungureanu Catalina Oana / Shutterstock.com
Pic: Ungureanu Catalina Oana / Shutterstock.com

As container ships wait to dock in a traffic snarl, creating a strong probability of goods shortages during the upcoming holiday shopping season, the White House responded to the backlog by finalising an agreement for the Port of Los Angeles (LA) to shift to a 24-hour, seven-days-a-week schedule. A similar move was undertaken for the nearby Long Beach port.

As retailers rushed to restock inventories, the shipping system struggled to meet demand and COVID-induced shutdowns at major ports and factories in Asia added to the issue, which led to shortages of toys, timber and apparel in the United States and a rise in prices.

The US government hopes night-time operations will help break the logjam and reduce shipping delays, and will also unlock capacity in the rest of the supply chain, including highways, railways and warehouses.

The two California ports, which handle 40 per cent of all cargo containers entering the United States, have faced problems for months.

Major US firms like Walmart and FedEx have committed to increasing their round-the-clock operations to help clear the jam, the White House said in a statement.

Across six companies—Walmart, FedEx, Samsung, UPS, The Home Depot and Target—over 3,500 additional containers per week will move at night through the end of the year.

The Port of LA had to move 30 per cent more shipping containers than usual in August, while the Long Beach port moved an extra 23 per cent.

Earlier this year, the Joe Biden administration set up a Supply Chains Task Force and appointed a port envoy to find remedies for the disruption.

Biden, who met retail bosses and union chiefs yesterday, said he planned the biggest investment in US ports in history as part of the $1-trillion Infrastructure Bill, which is yet to pass the Senate.

"Our goal is not only to get through this immediate bottleneck, but to address the long standing weaknesses in our transportation supply chain that this pandemic has exposed," he was quoted as telling reporters by US media reports.

He said he wanted to make it easier for US firms to make products on home soil. "Never again should we have to rely too heavily on one company or one country or one person in the world, particularly countries don't share our values," he added.

Fibre2Fashion News Desk (DS)

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