the Port of Los Angeles, one of the busiest in the country, will join its neighbor the Port of Long Beach and go 24/7
In the face of historic supply chain bottlenecks, large goods carriers Walmart, UPS, and FedEx pledged yesterday to ramp up their efforts to relieve some of the clogging from ports. Meanwhile, the Port of Los Angeles, one of the busiest in the country, will join its neighbor the Port of Long Beach and go 24/7.
- Together, LA and Long Beach move more than 25% of American imports, the WSJ reports.
- But loads of containers are stuck there, and 81 cargo ships are hanging out in the Pacific Ocean waiting to dock and unload as of Monday.
A problem so bad POTUS needed to get involved
This overtime plan was put together by the Biden administration, which has been scrambling to solve one of the nastiest side effects of the pandemic. As a result of factory shutdowns, worker shortages, and high demand, supply chains have become more tangled than your headphone wires.
- How you know it’s ugly: This year, S&P 500 companies have said the words “supply chain” on earnings calls more than “synergy” or “value proposition” combined.
Another reason the White House is so concerned about this issue?
Inflategate won’t go away
The prices of goods and services, as measured by the consumer price index, rose 5.4% annually in September. That’s the same pace as in June and July but a little higher than August.
Snarled supply chains are considered one of the main drivers of higher prices this year. And skyrocketing prices, especially in the energy sector, could put a dent in the economic recovery. Just a few days ago, Goldman Sachs cut its economic growth forecasts for 2021 and 2022.
Zoom out: In yet another sign of rising inflation, retirees receiving Social Security benefits will get a 5.9% bump in their payments in 2022 to adjust for the higher cost of living. That’s the biggest increase to Social Security checks in 39 years.—NF
Source: www.morningbrew.com