Opinion | Supply Chain Crisis Reveals US Infrastructure

As part of its push to unleash logistics, the President is proposing to operate 24/7 at Los Angeles Harbor, one of the country’s most important ports of Los Angeles. This is welcome news, but most people may stop and think, “Wait a minute. Is our port still up and running 24 hours a day?”

No, it speaks to the thick layers of irrationality that cover our supply chain. It is beyond everyone’s power to change this immediately, but trying to remove as much of these burdens as possible should be a national priority.

Since the advent of the container era in the late 1950s, we have experienced the worst disruptions in our supply chain, starting with a pandemic. The surge in e-commerce, coupled with a labor shortage, has helped create a swirling set of bottleneck conditions.

The ship is idling waiting to unload the cargo at the port, and the container is waiting to be shipped further inland at the port. Cargo is waiting outside a complete warehouse on the chassis that cannot be used to pick up other containers. Theoretically, there are plenty of ships, trucks, and other capacities to handle that amount, but not if much of that capacity is constrained and locked in place.

Therefore, we do not underestimate the challenges here. Everyone along every part of the US logistics chain is pointing to each other, and everyone is some, whether it’s a harbor, truck driver, warehouse, railroad or other player. Deserves blame.

But the situation is also how, As Scott Linsicom of the Cato Institute makes a convincing claim, Our logistics system suffers from ridiculous policies and practices that make it very inefficient. Political debates over infrastructure tend to think that more, especially more, is better, but how to use what you already have is important.

Consider our port. Facilities in the United States are far from the best performing facilities in the world. They are generally less automated and less efficient than those in other developed countries. For example, it takes an average of twice as long to move a container from a large vessel at the port of Los Angeles as it does at a major port in China. Asian ports operate 24 hours a day, comparable to the factory’s 24-hour pace, but so far, Los Angeles and Long Beach ports have only been operating 16 hours a day.

The White House pointed out that it mentions this, to say the least. Recent fact sheet about new logistics push“Unlike major ports around the world, US ports do not realize the full potential offered by night and weekend operations.”

Uh, yeah.

The main cause of this massive inefficiency is the incredibly powerful International Longshore and Warehouse Union, which locks ports above and below the west coast. He hates automation and earns special compensation for workers (harbor workers average $ 171,000 a year, foremen close to $ 300,000) and strict labor rules. When negotiating a contract renewal, the union can easily roar cargo throughout the west — slowing down work is its specialty.

As Peter Tirschwell Write to Journal of Commerce, “Huge cost increases, limited ability to automate terminals, chronic avoidable disruptions during contract negotiations, and much lower productivity and labor compared to ports in Asia and elsewhere around the world. Time is at the heart of the matter. “

In particular, the highly automated port of Virginia Better overcame the current crisis From its counterpart.

In our current system, there is nothing easy. Truck driver complaining Various restrictions make it difficult to take advantage of the additional night time already available at Los Angeles Harbor and Long Beach. The White House said in its fact sheet that another 3,500 containers would move at night, gradually changing in the right direction, but the plan for things would lower the bucket.Tilschwell says that Approximately 3 percent of those passing through US ports each week..

Long-distance truck drivers across the country need an additional 20,000 drivers and are suffering from a shortage of chassis.In the midst of a big logistics nightmare, the US International Trade Commission I imposed a duty of about 200 percent China intermodal marine container, the world’s largest chassis maker (in addition to 25% Trump era obligations). The company has certainly benefited from unjustified subsidies, but the timing of the Trade Commission’s actions was largely unfavorable. President of the Harbor Truck Association“Now we have created a shortage and increased costs,” complained on behalf of the West Coast port truck driver.

US trade policy should not ignore the real impact on the US economy.

Second, as Linccome points out, there are long-standing rules like the Jones Law. This is much more expensive to transport goods from port to port in the United States and imposes a premium on overtaxed ground systems.

Eventually, US logistics will break out of the current revision and reach a new equilibrium. Still, this crisis should encourage a rethink of the unnecessary inefficiencies we are imposing on ourselves. It’s too late to keep the coming Christmas harmless, but it will continue to help us, regardless of the season.

Opinion | Supply Chain Crisis Reveals US Infrastructure

Source link Opinion | Supply Chain Crisis Reveals US Infrastructure

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