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Port of Los Angeles goes 24/7 to help ease back-up U.S. supply chain, White House says


Washington – White House officials say they helped negotiate a deal for the Port of Los Angeles to become a 24/7 operation as part of an effort to relieve supply chain bottlenecks and move stranded container ship which are argues that higher inflation is temporary for US 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.

Ports of Los Angeles and Long Beach, Calif., Account for 40% of all shipping containers entering the United States

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.

Commitments from the Port of Los Angeles operator, longshoremen and several large retail and transportation companies are expected to help reduce the backlog. Walmart, FedEx, UPS, Samsung, The Home Depot, and Target have committed to off-peak unloading, making the port of LA easier to operate non-stop and reducing the bottleneck.

The White House says the 24/7 operations will see the Port of Los Angeles nearly double its unloading hours, with more than 3,500 additional containers per week leaving overnight through the end of the year via these only companies.

The Port of Long Beach has operated 24 hours a day for seven days for the past three weeks or so.

Prior to his speech, the president was scheduled to host a virtual roundtable with heads of Walmart, FedEx Logistics, UPS, Target, Samsung Electronics North America, Teamsters Union and the American Chamber of Commerce, among other groups.

Closely related to the larger inflation challenge Mr. Biden faces is the supply chain problem. Republican lawmakers have often criticized its $ 1.9 trillion coronavirus relief package for fueling higher prices. A recent analysis released by investment bank Goldman Sachs estimates that “limited supply products” account for 80% of this year’s inflation exceedance, but political critics continue to sting as housing and oil prices add to inflationary pressures.

Republican Senate Leader Mitch McConnell has made inflation one of his main criticisms of Mr Biden, a sign that price containment could be essential for Democrats trying to hold onto seats in the Congress in next year’s elections.

“Democrats’ inflation is so bad that even though the average American worker has gotten a pay rise of several percentage points in the past year, their real purchasing power has been reduced,” McConnell said in a speech given in the Senate last week. “Even dollar stores need to raise their prices. Just ask any American family about their last trips to the supermarket, gas station, or toy store. God forbid if they had to. participate in the housing market or the auto market at any time lately. “

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