HIGHLIGHTS
- The ports of Los Angeles and Long Beach, where maritime congestion has become iconic, reduced the number of container ships that stayed at the ports by 20 percent for more than nine days.
- Walmart, UPS, FedEx and Target have pledged to carry more cargo during off-peak hours to ease congestion at ports in San Pedro Bay.
- Biden launched an Action Plan for America’s Ports and Waterways, which allows ports to reallocate cost savings to more efficiently handle the spike in imports.
FULL ARTICLE
During a visit to the Port of Baltimore, President Joe Biden expressed pride in the fact that ports in San Pedro Bay have switched to 24/7 operation, which has improved service times for container ships. The ports of Los Angeles and Long Beach, where maritime congestion has become iconic, reduced the number of container ships that stayed at the ports by 20 percent for more than nine days.
The sharp increase in imports to the US affects the efficiency of port operations
Like Long Beach and Los Angeles ports, the Port of Savannah has handled a sustained rise in volumes for at least 12 of the past 18 months straight. One of the biggest issues ports face is a lack of space to process containers, as clogged container yards prevent ships from unloading efficiently and limit trucking companies’ abilities to return containers to facilities. Pop-up storage sites have become one of the tactics officials are using to free up space at ports.
He touted the Georgia Port Authority’s pop-up container yards project, which is reallocating $8 million to open five pop-up container yards in Georgia and North Carolina. The yards can handle more than 500,000 containers over a year, freeing up dock space for the Port of Savannah, which leads the United States in containerized agricultural exports.
In addition, Mr Biden said this week he spoke with executives from Walmart, UPS, FedEx and Target about concerns about empty shelves during the holiday season. All four companies have pledged to carry more cargo during off-peak hours to ease congestion at ports in San Pedro Bay. They are guaranteed to have enough stock to fill the shelves this holiday season.
Action Plan for Ports and Waterways
After touring a warehouse with local officials, Biden launched an Action Plan for America’s Ports and Waterways. The short-term plan allows ports to reallocate cost savings to more efficiently handle the spike in imports.
$1.2 trillion infrastructure package includes funding for port facility and facility upgrades, channel dredging and maintenance, marine highways, rail needs, safety improvements and emission reduction projects. The deal Biden is expected to sign also provides investments in cleaning and remediation of the environment, rebuilding resilience, fighting hurricanes and droughts, wildfires and hurricanes.
Minh Ngo
FURTHER READING:
US: The retail market is less active “peak season”
