White House to reveal new data-sharing initiative to tackle supply chain crunch
A new project, named “Freight Logistics Optimization Works” (FLOW) will join Biden Administration officials and private-sector businesses in a data-sharing initiative designed to enhance efficiency in moving imported goods to stores. The pilot program seeks to ensure that companies have information that can speed up deliveries, with transportation department officials sharing information about when cargo is expected to arrive at a port, and which containers have the goods for different destinations.
Administration officials say that companies themselves have requested data-sharing assistance for improvements after multiple other attempts to relieve supply chain pressures by Biden. The unexpectedly high level of inflation in the American economy is a key reason for the initiative as consumers have seen prices spike in recent months. Since 2021, surging demand for goods has clogged delivery systems, including at major ports.
Companies on board with the project include retailers such as Target, delivery names such as FedEx and also port representatives from the Ports of Long Beach and Los Angeles. The White House released a fact sheet saying that “these first partners are committed to working with the Biden-Harris Administration to identify and operationalize a first information exchange that will support a more resilient and fluid supply chain.”
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Covid-19 in China threatens global supply chains again
Long queues have been reported outside many major Chinese ports and Covid-19 outbreaks in manufacturing export hubs threaten a new wave of shocks to global supply chains. The country’s main ports remain open, but congestion is building, and some ships are re-routing to avoid delays. This is all due to the fact that China is currently experiencing its biggest spike in cases since the initial outbreak in Wuhan in 2020.
There are now 34 vessels off the Port of Shenzhen waiting to dock, compared to an average of seven a year ago, according to Refinitiv ship tracking data. At Qingdao, an eastern Chinese port city, there are around 30 vessels waiting to dock compared to an average of seven last year. As well as this, charter rates per 40-foot container remain close to record levels across major shipping routes, trading at about $16,000 on the China- U.S. West Coast route and $13,000 from China to Europe.
Supply chains are at risk due to the disruptions, as vessels may have to wait until congestion eases to load cargo and that will mean phones, televisions and toys take longer to get to the United States, said Peter Sand, Chief Analyst at Xeneta, a freight analytics firm. “I expect the consumers in the U.S. and shippers with cargo going for North America will be hardest hit,” Sand said.
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Cargo ship runs aground following in sister ship’s footsteps
The Ever Forward container ship is currently grounded in the Chesapeake Bay near Baltimore in the U.S., nearly a year after its sister ship blocked the Suez Canal for six days. The vessel is operated by Evergreen Marine Corp. Taiwan Ltd, the same transportation company that operates the Ever Given vessel, which blocked traffic in one of the world’s busiest waterways and the shortest shipping route between Europe and Asia in 2021.
The Coast Guard received reports on Sunday that the Ever Forward was grounded and is now conducting checks every four hours to ensure the safety of the crew on board and marine life, according to Petty Officer 3rd Class Breanna Centeno. As it stands, it has been reported that the ship is grounded outside of the canal and is not blocking the traffic of other container ships.
The vessel’s owner, Evergreen Marine said in an emailed statement that the incident had not caused a fuel leakage and did not block the navigation channel or disrupt traffic entering or leaving the port. “Evergreen is arranging for divers to conduct underwater inspections to confirm any damage to the vessel and is coordinating with all the concerned parties to refloat the ship as soon as possible,” it said.
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