The Biden administration has introduced measures to counter an impending low Christmas season, but some doubt it could likely improve anything.
“The White House is doing the right thing,” said Moody’s Analytics senior economist Tim Uy, according to CNN. “But I wouldn’t characterize it as a game changer. It’s a step in the right direction.”
The White House on Wednesday, Oct. 13, introduced a set of steps to ease down the massive backlog of cargo ships waiting to unload commodities.
The measurements ranged from allowing shipments to be processed 24/7, with the private sector also asked to increase their operations, to incentives to mend the crumpled truck drivers’ fiasco.
While Uy agreed the White House’s intervention might at least result in a 10% increase in container throughput, he stuck to an earlier Moody’s Analytics estimate that the disaster will get worse before it could actually improve.
Already in Savannah, where the port has been operational tirelessly all hours, they still saw a backlog of 80,000 containers.
Meanwhile, Geoff Freeman, CEO of the Consumer Brands Association, said the policies would not suffice to improve trucks and drivers shortage to process the products.
The truck driver shortage has exacerbated supply chain restrictions, making goods delivery to customers even more expensive and time-consuming. It was also the lead cause of the fuel crisis in the U.K.
Uy also shared the same low expectation about the shipping workforce.
“If the truck driver shortage continues, and I imagine it will, port congestion could very well come back,” said Uy.
CNN noted other critical factors lay beyond the U.S. government’s reach, such as COVID-19 restrictions imposed by different countries and that private businesses control a substantial portion of the system.
“Everyone I talk to within the consumer packaged goods industry believes the strain is only going to become greater in the months ahead,” said Freeman who attended a meeting with the president where he would urge private companies to take action.
Meanwhile, the White House is evaluating whether to resort to the National Guard to aid the supply chain crisis.
Executive vice president of strategy and alliances at the Association for Supply Chain Management Douglas Kent welcomed the idea but said deploying a federal bureau would not fix the understaffed issue in the long run.