Walmart, Target and Home Depot are among retailers that will take advantage of new round-the-clock operations at the country’s two busiest ports to move goods faster and get them on shelves in time for Christmas.
The efforts are part of a plan the Biden administration will announce today to keep the Port of Los Angeles operational 24 hours a day, 7 days a week, with expanded hours intended to help alleviate a traffic jam that has caused traffic jams. delays and shortages of everything from toys and bicycles to appliances. and furniture. Since last week, more than 60 ships have been waiting offshore to dock. This port, along with Long Beach, accounts for 40% of containers entering the United States. The Port of Long Beach introduced night and weekend hours in September. Ports in Asia and Europe are already operating according to this schedule.
Ordinary people and businesses are feeling the effects of these delays and bottlenecks, a senior administration official said on a call with reporters on Tuesday evening. This makes it difficult to put the products on the shelves and deliver the goods to their doorstep.
The bottleneck in the ports is only one source of delays threatening the decisive holiday season. As consumer demand has skyrocketed, it has put additional strain on a global supply chain hampered by the coronavirus pandemic. Factories in Asia have periodically gone dark as workers fall ill. It has become difficult to secure space on shipping containers, prompting some large retailers like Walmart, Costco Home Depot charter their own vessels. Others have taken to putting things on planes. Once the goods arrive in the United States, their transportation is further hampered by a shortage of truck drivers.
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Walmart said it will start operating a lot more at night, which could help increase throughput by up to 50% over the next few weeks. Home deposit
UPS and FedEx, which together shipped 40% of U.S. packages by volume last year, are also pledging to work more hours. UPS plans to leverage more of 24/7 operations and also improve its data sharing with ports, which could allow it to move up to 20% more containers from ports. FedEx is looking to double the amount of cargo it carries overnight.
In total, these companies will move 3,500 additional containers at night each week until the end of the year, according to the administration. It is often faster to move goods during off-peak hours. For example, at the Port of Los Angeles, goods move 25% faster at night than during the day.
By taking these steps, they are telling the rest of the supply chain, you need to get moving too, let’s step up, the official said.
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