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Companies will work 24 hours a day due to the crisis in the supply chain

(CNN) – The White House will work with private stakeholders in a “90-day race” to help ease supply chain bottlenecks, a problem that has led to Increasing prices for consumers It slowed the global economic recovery from the COVID-19 pandemic.

The White House, which maintains that many ports and the companies it works with to help open bottlenecks in the private sector supply chain, announced that some entities will work 24 hours a day, 7 days a week, to help resolve shipping delays.

President Biden will meet with senior officials and stakeholders to discuss collective efforts to address bottlenecks in the global transportation supply chain, and then deliver a speech on Wednesday.

“The supply chain is basically in the private sector, so we need the private sector to help solve these problems,” a senior administration official said before the announcement.

The Port of Los Angeles will transition into service 24 hours a day, 7 days a week, and the Port of Long Beach is now operational 24 hours a day. These two ports handle 40% of container traffic in the United States.

What is happening to the world’s supply chain? 2:59

The official also said that three of the country’s largest shipping companies, Walmart, FedEx and UPS, would commit to operating 24 hours a day.

“By taking these steps, they’re saying to the rest of the supply chain ‘You have to move, too. We’re going to take a step forward,'” the official said, adding that the White House hopes these companies will motivate others to follow suit. Lawsuit.

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short range meter

Officials also said the federal government is working with state DMVs to help increase the issuance of commercial driver’s licenses in an effort to increase the number of truck drivers in the country. They added that the White House expects the trucking and rail industries to extend their hours as well.

However, the official cautioned that even with short-term solutions, industries affecting the supply chain are somewhat outdated, and called for approval of President Biden’s infrastructure agenda to truly address these issues.

“To be clear, no matter what we do in the short term, we end up having a capacity problem with our ports, our freight trains, our roads and our bridges. Quite simply, a lot of our freight and freight infrastructure has been built decades or even generations ago, and Americans have been importing and exporting more Much more than they did at the time.”

“The federal government will be a strong and willing partner in this short-term effort, but also in rebuilding a better system for the 21st century,” he added.

Change in demand affects the supply chain

The White House has argued that one cause of the supply chain disruptions is due to increased demand, as consumers’ buying habits have changed throughout the pandemic.

“As a result, what we have seen is a huge demand for goods through the supply chain transmission system. A lot of this is because shopping is done online, which has bigger implications, of course, on import, warehousing and other factors across our supply chain.”

But the official also pointed to the global component of bottlenecks in the supply chain, including global ports and factories that have sometimes closed during the pandemic, limiting the ability of businesses and consumers to get their products. This is one reason the United States is working to share vaccines with the rest of the world, the official said.

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“If we can stabilize the pandemic, we know it will have a positive impact on global supply chains for a beneficial economy,” the official said.

Attendees at the roundtable are expected on Wednesday. (List updated through Tuesday night.)

  • Gene Siroca, CEO of the Port of Los Angeles
  • Mario Cordero, CEO of the Port of Long Beach
  • Willie Adams, International President, ILWU
  • James Hoffa Jr., General President, Teamsters
  • Greg Reagan, Head of Transportation Commerce, AFL-CIO
  • John Woerner, President and CEO of Walmart US
  • Dr. Udo Lange, President and CEO of FedEx Logistics
  • Nando Cesarone, President of US Operations, UPS
  • Brian Cornell, Chairman and CEO, Target
  • KS Choi, President and CEO of Samsung Electronics North America
  • Matt Shay, CEO of the National Retail Federation
  • Peter Friedman, Director of ejecutivo, Agricultural Transportation Coalition
  • Chris Speer, President and CEO of the American Trucking Association
  • Ian Jeffries, President and CEO of the American Railroad Association
  • Susan Clark, President and CEO of the American Chamber of Commerce.
  • Jeff Freeman, President and CEO of the Consumer Brands Association
  • Jim McKenna, President and CEO of the Pacific Maritime Association

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