A Moody’s report revealed supply chain disruptions will continue to increase costs for consumers before the crisis will resolve itself – perhaps in 2023, CNN reported Wednesday.
Moody’s Analytics warned the business community on Monday:
Supply chain disruptions “will get worse before they get better. As the global economic recovery continues to gather steam, what is increasingly apparent is how it will be stymied by supply-chain disruptions that are now showing up at every corner.
Moody’s also said the shortage of truck drivers could be the “weakest link” in the supply chain, causing ports to remain full, which delays ships scheduled to pick up freight in Asia and return to America. Moody’s wrote:
Because deliveries are not made in time, costs and prices will rise and GDP growth worldwide will not be as robust as a result. This presents a serious challenge to harmonizing the rules and regulations by which transport workers move in and out of ports and hubs around the world.
CEO of Freight Right Global Logistics Robert Khachatryan confirmed to Breitbart News on Tuesday the transit time from Asia has become greater by four to six weeks due to port delays that are mainly a function of truck drivers not picking up freight at the port.
Meanwhile, a Biden-Harris administration official on Tuesday blamed the private sector for the supply chain crisis.
“The supply chain is essentially in the hands of the private sector so we need the private sector to step up to help solve these problems,” a senior Biden administration official told the Financial Times.
“It is up to the terminal operators to actually open up those hours and book the cargo movements in the off hours, so labor has pledged that they will be there. We know that they’re committed to doing this,” the official added.
But critics say the truck driver shortage is due to unemployment money that has kept drivers away from returning to work. Many drivers are making more money in Democrat-controlled states from government checks than they would by working. And the Biden-Harris administration has admitted as much on Tuesday to the New York Times.
“Administration officials acknowledged on Tuesday in a call with reporters that the $1.9 trillion economic aid package Mr. Biden signed into law in March had contributed to supply chain issues by boosting demand for goods,” the paper wrote.
Nevertheless, President Joe Biden will announce Wednesday the Port of Los Angeles should remain open 24/7 to increase companies’ ability to move freight from the ports. But as the Financial Times pointed out, “Port of Long Beach in California had taken steps towards operating on a 24/7 schedule about three weeks ago.” It is unclear how ports being open longer hours will help trucking companies move the freight faster without employees.
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