Will port congestion be solved? The United States will invest 17 billion to expand ports

Will port congestion be solved? The United States will invest 17 billion to expand ports

The peak season has arrived, and the Black Friday pre-sale has begun. I believe that all sellers are waiting for the highlight moment of explosive orders. However, the reality is that sellers generally face three different situations. Some sellers are not affected by the supply chain and the increase in air and sea freight rates, and everything is going smoothly; some sellers have shipped the goods, but are facing delayed delivery due to various factors; and some sellers are more affected and have not yet cleared all the goods.

The reasons for the above situation include the "account blocking, running away... " of cross-border e-commerce this year , and a series of supply chain problems such as "staff shortage, skyrocketing freight rates, and port congestion" that have also contributed to this situation. In particular, the transportation problems to the United States are the most obvious, with multiple problems frequently occurring.

 

According to the latest news, the United States passed a new infrastructure bill on November 6. It is worth noting that in the latest bill, the White House stated that it would invest $17 billion to improve the infrastructure of coastal ports, inland ports and waterways, and border land ports of entry. The White House said that these resources will provide short-term assistance and will also make long-term investments to strengthen supply chain resilience. This seems to be good news for sellers.


 

According to the 2021 American Infrastructure Report, U.S. ports supported more than 30 million jobs in 2018 and accounted for about 26% of U.S. GDP . But ports face many challenges, including climate issues and a surge in cargo .

 

According to its plan, the White House will allow ports to flexibly allocate funds to support creative solutions to current supply chain disruptions . In addition, it will ease congestion at the Port of Savannah by funding the Georgia Ports Authority's pop-up container yard project. In the next three months, the White House also stated that it will provide grants for multiple infrastructure such as ports, marine highways, and coastal inland waterways.

 

The investment in this bill will have a positive impact on alleviating port congestion. Although the effect may not be obvious in the short term, if it is implemented as scheduled and smoothly, at least problems such as port congestion and cargo backlog will not be as serious as they are now.


USA

port

Expansion

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