There’s a growing fear among retailers that Washington’s efforts can do little at this point to save the all-important holiday shopping season
It’s not that less cargo is moving. In fact, ports are processing record levels of imports, and the cost of shipping containers has skyrocketed to unprecedented heights in recent months due to demand. The supply chain simply cannot keep pace with the elevated demand for goods — and industry players expect that strain to persist.
Those calls are happening frequently. Gene Seroka, executive director of the Port of Los Angeles, is on the phone with administration officials multiple times per day, he said, providing status updates on the port’s operations and coordinating on new White House initiatives with others in the supply chain.
In the meantime, large retailers like Costco, Walmart, Amazon and Home Depot are chasing their own workarounds. Seroka said some companies placed holiday orders early in anticipation of delays and dispatched regional delivery drivers to transport cargo away from the ports. Others have chartered vessels to transport their own shipping containers or re-routed their deliveries to ports outside California to reduce delays.
“We might not be able to achieve short-term solutions right now, but focusing on it now so we don’t run into these kinds of issues in the future is critical,” Gold said.the bipartisan infrastructure package, which contains more than $200 billion in new spending for transportation upgrades to ports, airports, railways, roads and bridges.
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