Ports have been front and center in the discussion of supply chain backlogs, where dozens of ships are off the California coast waiting to unload their cargo at the Ports of Long Beach and Los Angeles.
The twin ports of Los Angeles and Long Beach reported in a statement that arriving containers scheduled to be moved by trucks would be permitted to stay for nine days before fines start accruing. Containers set to move by rail can remain at the ports for three days.
Following that, ocean carriers will be charged $100 per container, increasing in $100 increments per container per day, the statement said.
The new rules will reportedly go into effect on Nov. 1. "The terminals are running out of space, and this will make room for the containers sitting on those ships at anchor," Port of Long Beach Executive Director Mario Cordero said in the statement.
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It is the latest step to relieve cargo ships' logjam that has interrupted the global supply chain. The backlog prompted the Biden administration to enable the port complex to operate 24 hours a day to get goods unloaded and out to consumers.
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America is experiencing a supply chain backlog that has left dozens of ships anchored in the Pacific Ocean and empty store shelves across the country. Experts say every step in the supply chain is experiencing challenges, brought on by labor shortages and pandemic-induced e-commerce shopping sprees.
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About 40% of all shipping containers entering the U.S. come through the Los Angeles and Long Beach ports.
Both White House chief of staff Ron Klain and Transportation Secretary Pete Buttigieg have come under fire for their comments about the supply chain crisis, with Buttigieg claiming the shortage came from President Biden successfully guiding the economy "out of the teeth of a terrifying recession."
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Experts imply the causes, and solutions, to the supply chain crisis are multifaceted and date back further than Joe Biden’s presidency.
Association of American Railroads (AAR) SVP of Policy and Economics, John Gray, told Fox News Digital that the crisis started in mid-summer last year "when the economy took the plunge that we saw during April and May." The crisis is now affecting every industry in the supply chain, and each is taking steps to clear the backlog.
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Many products that come into U.S. ports transport across the country via railroad, and AAR's Gray said that backlogs in other areas of the supply chain have negatively impacted his industry’s ability to deliver products.
The solution, he said, will take time, and there is "no magic."
This year, online holiday shopping is expected to reach a record-breaking $207 billion, according to the Adobe Digital Economy Index.
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