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White House says Walmart, FedEx, UPS to work 24/7 to ease supply bottlenecks for holiday season

WASHINGTON, Oct 13 (Reuters) - President Joe Biden will host a meeting on Wednesday to hail progress in addressing supply chain problems weighing on the economy and threatening the holiday season, while he challenges business and union leaders to do more to ease shipping backlogs.

The Port of Los Angeles is going to 24/7 operations as a step toward helping ease the shipping snarl there and at the Port of Long Beach, a senior administration official told reporters ahead of the meeting.

In addition, the three largest carriers of goods - Wal-Mart (WMT.N), FedEx (FDX.N) and UPS (UPS.N) - plan to move toward round-the-clock operations to help speed the shipment of goods across the country, the official said.

Samsung (005930.KS), Home Depot (HD.N) and Target (TGT.N) are also increasing their work in off-peak hours to accelerate the movement of goods, the official said.

"By taking these steps, they're saying to the rest of the supply chain, you need to move too," the official said. "Let's step it up."

White House officials, scrambling to relieve global supply bottlenecks choking U.S. ports, highways and railways, are warning that Americans may face higher prices and some empty shelves this Christmas season. They are urging patience. read more

The supply crisis is driven in part by the global COVID-19 pandemic. It not only threatens to dampen U.S. spending at a critical time, it also poses a political risk for Biden.

The latest Reuters/Ipsos poll shows the economy continues to be the most important issue for Democrats and Republicans alike.

Biden will meet at 1:45 p.m. (1745 GMT) at the White House with executives from the two ports as well as from the International Longshore and Warehouse Union, the Teamsters, the AFL-CIO, Wal-Mart, FedEx, UPS, Target, the National Retail Federation, the American Trucking Association, the Pacific Maritime Association, and more.

He will speak on these efforts at 2:20 p.m. (1820 GMT).

The White House has been trying to tackle inflation-inducing supply bottlenecks of everything from meat to semiconductors, and formed a task force in June that meets weekly and named a "bottleneck" czar, John Porcari, to push private-sector companies to find ways to get goods flowing.

Thousands of shipping containers are on cargo ships offshore waiting to be offloaded at the ports of Los Angeles and Long Beach. Similar backlogs exist at ports in New York and Savannah, Georgia. A shortage of warehouse workers and truck drivers to pick up goods is partly to blame.

Reporting By Steve Holland; Editing by Tim Ahmann and Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

Sours: https://www.reuters.com/world/us/biden-cite-progress-unsnarling-supply-chain-meeting-with-labor-industry-2021-10-13/

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Supply chain: Biden will tell Walmart, FedEx, UPS to up their output and push LA ports to run 24/7

Joe Biden will speak at the White House later today where he'll announce a deal to expand shipping hours at the Port of Los Angeles

President Joe Biden has reached a deal with unions and business leaders from Walmart, FedEx, UPS and others to expand operations at one of the country's largest shipping ports on Wednesday. 

Once implemented the proposed changes could increase output by more than 3,500 shipping containers per week, White House officials said. 

Under the new agreement the Port of Los Angeles will join the Port of Long Beach in working around the clock to alleviate some of the supply chain bottlenecks that have led to empty shelves and high prices heading into the holiday season. 

The consumer-price index also rose by 0.4 percent from August to September, according to data released by the Labor Department on Wednesday. That's a 5.4 percent year-over increase, the highest in 13 years. 

While slower than June's record-setting 0.9 percent increase, it likely won't be enough to turn the tide of inflation in time for Christmas. 

Biden will make the announcement from the White House later this afternoon.

He'll also be speaking with leadership at the Ports of Los Angeles and Long Beach as well as representatives from the International Longshore and Warehouse Union. 

Together the California ports see 40 percent of all shipping containers that enter the US.

Long Beach expanded its operations to 24-hours seven-days-per-week last month. Now, Los Angeles port officials and union leaders have agreed to add off-peak nighttime and weekend hours to help drive consumer prices down as well. 

Goods at the Port of Los Angeles move 25 percent faster at night than during the day, White House officials have said. 

They argue that expanding to overnight operation would help lighten the load on other links in the supply chain by easing traffic congestion during the day.

As of Monday, there were 62 ships berthed at the two ports and 81 waiting to dock and unload, according to the Marine Exchange of Southern California. 

There were 62 ships berthed at the Port of Los Angeles (pictured) and Port of Long Beach and 81 waiting to dock and unload as of Monday

There were 62 ships berthed at the Port of Los Angeles (pictured) and Port of Long Beach and 81 waiting to dock and unload as of Monday

Supply chain issues have hampered the economic recovery from the coronavirus pandemic and are tightly linked with the broader challenge of inflation confronting Biden. 

Donald Trump took aim at his former rival on Wednesday in a statement mocking the multiple crises Biden is facing, including rising consumer prices.

'COVID is raging out of control, our supply chains are crashing with little product in our stores, we were humiliated in Afghanistan, our Border is a complete disaster, gas prices and inflation are zooming upward—how’s Biden doing? Do you miss me yet?' the former president said. 

 Before his speech, Biden was scheduled to hold a virtual roundtable with the heads of Walmart, FedEx Logistics, UPS, Target, Samsung Electronics North America, the Teamsters Union and the US Chamber of Commerce, among other groups.

Walmart, the country's largest retailer, told Biden it would move to increase shipping output by as much as 50 percent over the coming weeks.

Trump mocked Biden's handling of multiple national crises in a statement Wednesday morning

Trump mocked Biden's handling of multiple national crises in a statement Wednesday morning

Shipping giant UPS has vowed to increase data sharing with port officials and estimates it could raise its operating capacity by 20 percent.

FedEx said it would implement changes to double the volume of containers it can move out at night and Samsung agreed to expand output by nearly 60 percent.

White House officials estimate that more than 3,500 additional shipping containers per week will be sent by night through the end of the year. 

Yesterday the White House warned shoppers that popular kids' toys could be out of reach come Christmas as Biden and Congressional Democrats struggle to turn the economic tailspin around. 

And today on CNN, Transportation Secretary Pete Buttigieg joked that people who shop on Christmas Eve will face 'more challenges.'

He was asked on Wednesday about how supply chain issues would get ahead of December.

Supply chain bottlenecks have led to empty shelves and high prices for American consumers

Supply chain bottlenecks have led to empty shelves and high prices for American consumers

Yesterday the White House warned that many popular toys may not get here in time for Christmas

Yesterday the White House warned that many popular toys may not get here in time for Christmas

'I think there's always been two kinds of Christmas shoppers - there's the kind that have their list completed by Halloween, and there's people like me who show up at the mall on Christmas Eve. If you're in that latter bucket, obviously there's going to be more challenges,' Buttigieg said.

Stores across the country have become increasingly barren thanks to a series of bottlenecks in the global supply chain. 

Many goods that are made in China - like toys, clothes, home appliances and more - are stuck either in factories there or in containers on board cargo ships off the coast that are waiting their turn to dock. 

At almost every link in the chain, there is a shortage; there aren't enough yard workers to unpack the cargo on the ships quickly enough, nor are there enough drivers able to ferry them around on the ground. In stores, retailers don't have enough workers to unpack them once they arrive.    

It has created a nightmare economic scenario where demand for goods is far outpacing supply, driving inflation and in turn raising prices for Americans.  

Republican lawmakers have frequently blasted Biden's $1.9 trillion coronavirus relief package for fueling higher prices. 

A recent analysis issued by the investment bank Goldman Sachs estimates that 'supply-constrained goods' account for 80 percent of this year´s inflation overshoot, yet the political criticism continues to sting as housing and oil prices add to inflationary pressures.

Senate Republican Leader Mitch McConnell has made inflation one of his central criticisms of Biden, a sign that getting prices under control could be essential for Democrats trying to hold onto congressional seats in next year's elections.

'The Democrats' inflation is so bad that even though the average American worker has gotten a multiple-percentage-point pay raise over the last year, their actual purchasing power has been cut,' McConnell said in a Senate floor speech last week.

'Even dollar stores are having to raise their prices. Just ask any American family about their last few trips to the supermarket, the gas station or the toy store. Heaven forbid if they´ve had to participate in the housing market or the auto market anytime lately.'

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

Economists expect that Wednesday's consumer prices report will show that prices climbed 5.3 percent from a year ago, significantly above the Federal Reserve's 2 percent target.   

Atlanta Fed president Raphael Bostic said in a Tuesday speech that he no longer calls inflation 'transitory' as he expects this current 'episode' of inflation could last into 2022 or longer.

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Home Holiday Shop Furniture School & Office Supplies Toys $0 – $15 $15 – $25 $25 – $50 $50 – $100 $100 – $150 $150 – $200 $200 – $300 $300 – $500 $500 – $800 $800 – $1000 Target eForCity mDesign School Specialty Spreetail buy online & pick up in stores shipping same day delivery include out of stock Beige Black Blue Brown Clear Gray Green. type A Nesting Storage Tote, Blue, 63-L. Rolling Storage Cart on Wheels- Portable Metal Storage Organizer with Drawers and Fabric Bins by Lavish Home (4-Tiers) Overstock on sale for $46. Safely store up to 40 pounds of household goods, such as crafting supplies, camping gear, or clothing in these big storage bins. They offer the durable structure of a bin with the flexibility of a bag. Small Parts Storage Cabinets are made of heavy duty all welded 14 gauge. Save even more with the harbor freight credit card. Pink in Storage & Organization. HDX 27 Gal. Choose from 8 different file storage materials from small to large. 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