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White House announced Port of LA/Long Beach will operate 24/7 to address supply chain crisis


The White House announced Wednesday that the Port of Los Angeles and Long Beach will be operating a 24 hours a day as the Biden Administration addresses the growing supply chain crisis caused by economic fallout brought on by the COVID-19 pandemic.


Why it matters:

The port of Los Angeles and Long Beach is the largest in the United States, a facility that moves 41% of all containers to the US, according to Alphaliner. The White House said via a press release that, "Through August, Los Angeles has moved 30% more and Long Beach over 20% more containers to help U.S. exporters reach customers around the world and U.S families and factories get the goods they need."

  • The congestion is a reaction to a lack of trucks and truck drivers to move goods, per the Guardian.

  • Dozens of cargo ships have been anchored off the California coast.

  • There is a possibility that a cargo ship caused the oil spill off the coast of Orange County last week.

What's the plan:

The White House is assembling the International Longshore and Warehouse Union (ILWU) and multiple businesses to move goods off the docks and end the backlog of cargo ships near the ports.

  • Biden will meet with the representatives of the Ports of Los Angeles and Long Beach and the ILWU to discuss the actions they are each taking to address the backlog.

  • Wal-Mart, UPS, FedEx, Samsung, Home Depot, and Target have agreed to increase their efforts to move their products at a higher pace.

  • The ILWU has agreed to have its members work additional shifts in order to increase capacity.

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