Supply chain crisis: Biden's port plan won't solve much, experts say

Biden's California port plan won't solve supply chain crisis, experts say

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Biden's California port plan won't solve supply chain crisis, experts say

Experts are unconvinced that U.S. President Joe Biden's recently announced plan to move to 24/7 California port operations will do much to help solve the supply chain crisis.

The White House announced on Wednesday that the Port of Los Angeles would start processing ships non-stop to help ease a near-record backlog of over 60 container ships waiting to unload. It also said that six companies, including Walmart, UPS, and FedEx had committed to extending their hours to help move the goods as a part of a 90-day sprint.

But experts say the move will have little impact on the crisis and may push the issue further down the supply chain.

"It's great that they've chosen to do something, but we're talking about a less than 1% to 2% change here," Brian Whitlock, a supply chain analyst at Gartner, told Business Insider. "The work that they're talking about here is going to be immaterial. It probably won't even be visible."

Meanwhile, Former U.S. trade negotiator Harry Broadman told Insider the administration's plan addresses the more "glamorous" aspect of the supply chain — hulking cargo ships stuck at sea — while failing to look at the issue "holistically."

Backlogs at US railroads and warehouses are also contributing to the delays, he said, adding that shortages of warehouse workers, truck drivers, shipping containers, and chassis are also major issues that the White House failed to address.

He also said that the supply-chain crisis is mostly out of the president's control, unless the government began regulating or penalizing companies within the supply chain.

"There's nothing much that the Biden administration can do in the short or even medium-term," he was quoted as saying. "The logistics industry is run by private actors and these private actors need to solve it."

Mike Tran, RBC's managing director for digital intelligence strategy, was quoted as saying: "The issue is non-linear".

"It's not just about getting people to work or extending hours. The issue has spread throughout the entire supply chain, each leg of the journey is delayed," he told Business Insider.

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