New White House initiative to address LA Port supply chain issues
The White House Tuesday announced a new information sharing initiative designed to address the supply chain issues which have plagued the Ports of Los Angeles and Long Beach over the last several months.
The initiative, titled Freight Logistics Optimization Works (FLOW), is a digital information sharing system that will "pilot key freight information exchange between parts of the goods movement supply chain."
Its initial configuration will consist of 18 participants, including ports, trucking companies and private businesses. The ports of L.A. and Long Beach are among those involved, along with Albertsons, Target, FedEx and UPS. The Department of Transportation is heading up the effort.
"These key stakeholders will work together with the administration to develop a proof-of-concept information exchange to ease supply chain congestion, speed up the movement of goods, and ultimately cut costs for American consumers," the White House said in a news release.
Going back to September, dozens of cargo ships have been anchored offshore from the ports of L.A. and Long Beach, leading to a supply chain crisis nationwide. The logjam is due partly to the shortage of warehouse workers and truck drivers to pick up goods.
Once the ships are unloaded, however, it has lead to a new litany of problems, with surrounding neighborhoods being used for storage, trucks idling for hours in residential streets and even property damage.
In November, the ports announced a fee on companies which have import containers linger at marine terminals. But the fee has been repeatedly delayed. The White House said that the threat of the fee resulted in a 60% reduction in the number of containers lingering on the docks.
