LA Ports Trying To Operate 24/7 Amid Supply Chain Crisis

Tens of thousands of containers are stuck at the Los Angeles and Long Beach ports in California. These ports have been a topic of discussion for many weeks, and suppliers are struggling to keep consumers happy as holiday demand increases. Add on the backlog of imports due to the pandemic, and we have a perfect storm. Will Thanksgiving and Christmas barely be on time this year? Shipping ports hope the answer is yes. Their answer comes as the supply and demand chain has felt a particular pull from consumers this year. As a result, LA ports are making an effort to hire more workers and reduce vacation days for the time being. According to the White House, expanded operations at the Port of Los Angeles nearly doubled the hours that cargo could move. And the International Longshore and Warehouse Union, which represents dockworkers, has agreed to these extra shifts.

“[Wednesday’s] announcement has the potential to be a game-changer. I say potential because all of these goods won’t move by themselves. For the positive impact to be felt across the country, and by all of you at home, we need major retailers who order the goods and the freight movers who take the goods from ships to factories and stores to up as well.”

-President Biden

What happens now?

In terms of a detailed response, port officials say the cause of the backup is primarily due to the strictly enforced C-19 restrictions at the ports. Over the past year, the CDC required that after identifying a C-19 case, all persons aboard would be considered “contacts” due to the close living quarters. Then, the crew had to remain on board until all members tested negative, making for slow travel. And we can’t forget about the labor shortageaffecting nearly every industry in the U.S.

The terminals in Los Angeles say they hope to be open and operating 24/7 but are not sure when those operations will begin. Port of Los Angeles Executive Director Gene Seroka said details of the overnight hours are still being worked out with companies in the supply chain.

Behind the scenes talk

Behind the scenes, company executives and national leaders have been experiencing the first-hand effects of a global shortage. The ensuing problems within the supply chain have been affecting everything from computer chips to lumber. Now private industries are hoping to help contribute to a solution. Walmart Inc., FedEx Corp., and United Parcel Service Inc. are among the companies that have stepped up operations at the ports. If they and several others were to commit, containers would be able to empty every night through the end of the year, resulting in nearly 3,500 containers being retrieved a week. ​

In an interview with “CBS Evening News” on Tuesday, Treasury Secretary Janet Yellen acknowledged that we should expect to see a continuation in shortages as we approach these coming months. “But there is an ample supply of goods,” she said. “And I think there’s no reason for consumers to panic about the absence of goods that they’re going to want to acquire at Christmas.”

So, for now, Christmas is on schedule. But you shouldn’t wait to stock up on what you need before the holiday rush, where we see even more pressure on the supply and demand chain.