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Shipping Executives Call for Government Aid to End Supply-Chain Crisis

Manufacturers + Suppliers

Shipping Executives Call for Government Aid to End Supply-Chain Crisis

Why some manufacturing and shipping delays could extend into 2023

October 25, 2021
Shipping containers in port
Photo: Kari Hackli (CC by 4.0)

Shipping executives are pushing for government intervention to end a year-long supply-chain backlog causing crowded ports and major delays, Insider reports.

Despite some assistance from the U.S. government, supply-chain analyst Brian Whitlock worries that more disruption is imminent as contract negotiations between dockworkers and terminal operators are scheduled for next year.

In an interview with the Financial Times, Jeremy Nixon, CEO of freight company Ocean Network Express, said that local governments need to increase spending on critical parts of the supply chain – including ports, railways, warehouses, and roads – to increase capacity and cope with ongoing demand. Ocean Network Express has a fleet of 220 ships and transports more than 6% of the world's containerized freight, according to the FT.

The White House stepped in earlier this month, announcing plans to shift clogged up Southern California ports to a 24-hours-a-day, seven-days-a-week schedule and allow more time to work through the backlog. Experts were skeptical about how much of an impact this would have if warehouses and truck drivers were not following the same routine.

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