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Supply chain issues force Port of Los Angeles to operate 24/7 to reduce shipping backlog

WASHINGTON (NewsNation Now) – Biden administration negotiates new deals to ease stressed supply chain, ease shipping backlogs and move stranded container ships that drive up prices for consumers off the American coast.

The White House announced Wednesday morning that the Port of Los Angeles would become a 24/7 operation to reduce the backlog.

The ports of Los Angeles and Long Beach, California, account for 40% of all ocean 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. .

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. NewsNation will broadcast the remarks live in the above player.

Commitments from the Port of Los Angeles operator, longshoremen and several of the nation’s largest retail and shipping companies are expected to help reduce the backlog. Walmart, FedEx, and UPS have committed to off-peak unloading, making the port of LA easier to operate non-stop and reducing the backlog. The Port of Long Beach has operated 24 hours a day for seven days for the past three weeks or so.

In an economy shattered by the coronavirus pandemic, shortages and price spikes have affected everything from lumber and computer chips to toilet paper.

Republican lawmakers blasted Biden’s $ 1.9 trillion coronavirus relief package, which was passed in March, 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 Biden, a sign that price containment could be essential for Democrats trying to hold onto congressional seats in the elections next year.

“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 in the Senate last week. “Even dollar stores have to raise their prices. Just ask any American family about their latest trips to the supermarket, gas station, or toy store. God forbid if they’ve had to participate in the housing market or the auto market 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.

This is because the U.S. Postal Service, FedEx, and UPS have posted recommended shipping dates to ensure gifts and cards arrive on time for the holidays. Retailers have advised consumers to shop early or risk not finding what they want for Christmas, which falls on a Saturday this year.