President Joe Biden visited the Port of Baltimore on Wednesday, emphasizing that his government is taking measures to reduce the burden on the middle class and plans to make infrastructure investments to improve current and future supply chain efficiency. 

The tour was conducted in the context of consumer inflation reaching a 30-year high and Christmas products stranded on ships, because the ports and inland systems were too crowded to ship more imported goods to their destinations. Delays and soaring transportation costs are important reasons for the 6.2% inflation rate in October reported by the government earlier.

Congress passed a $1.2 trillion infrastructure bill on Friday, which provides federal investment in transportation, drinking water, electric vehicle charging, broadband, and emission reduction projects.

Biden said his economic priorities are to lower prices, ensure that stores have sufficient inventory, and return people displaced by the new coronavirus to work.

"By investing in our roads, bridges, and ports, this bill will make it easier for companies to bring goods to market quickly... and ensure that we have products on our shelves. In the long run, this means building greater flexibility Resist the impact and destruction we can expect," Biden said in a speech at Seagirt Marine Terminal.

The bill "represents the largest port investment in the history of the United States. For American families, this means that products from the factory floor through the supply chain to your home are faster and cheaper," he said, on the dock behind him A Maersk container ship is parked.

Even before the President signed it into law on Monday, the White House had already begun implementing parts of its infrastructure investment plan so that funds could be quickly used to solve some direct supply chain bottlenecks. On Tuesday, it announced a port action plan, which includes:

The infrastructure plan includes US$17 billion for ports, US$25 billion for airports, and US$110 billion for roads and bridges. Experts say these projects have been underinvested for decades.

The package includes a US$2.25 billion port infrastructure development grant program and nearly US$5 billion for the U.S. Army Corps of Engineers for dedicated port and inland waterway projects. Other programs help fund road and rail projects outside the port.

The legislation also invests US$5 billion in the U.S. Reconstruction Infrastructure Appropriation Program, which supports road and rail projects that are critical to efficient cargo transportation, and provides US$5 billion for the Comprehensive Railroad Infrastructure and Safety Improvement Appropriation Program, which is Projects to improve safety and efficiency provide funding and the reliability of intercity passenger and freight railways. For the first time, the railway repair and improvement financing plan of the Ministry of Communications listed landside port infrastructure as an eligible project category.

The Howard Street Railroad Tunnel in Baltimore is an example. This type of nationally significant public-private partnership has been in the planning stage for many years, and finally received funding to eliminate major freight bottlenecks. The Ministry of Transportation recently awarded a discretionary grant of US$125 million to increase the vertical clearance of the tunnel so that it can accommodate double-deck intermodal rail cars, so that the freight railroad CSX (NASDAQ: CSX) can directly enter its border 95 The main north-south corridor of Interstate Highway and the ability to more efficiently transport cargo to the Ohio Valley and Chicago.

Maryland is the main source of funding for the project, with an investment of US$202.5 million.

During his visit, the president visited large machinery, rolls of fresh fiber cardboard, and other commodities imported and exported through Baltimore. He also met with crane operators and other union dock workers.

The Port of Baltimore handles more cars and light trucks, heavy agricultural and construction machinery than any other port in the United States. Due to the large number of local distribution, fulfillment and sorting centers, it is the main gateway for e-commerce sellers to purchase goods in the region. According to the Maryland Port Authority, the port received 23 unplanned ships that were diverted from other ports due to congestion in the past year, totaling more than 35,000 20-foot equivalent units.

In 2020, the Seagirt terminal handled 628,132 containers.

Earlier this year, terminal operator Ports America completed a dredging project. The second berth of the project was deepened to 50 feet, so Seagirt can handle two very large container ships at the same time. Seagirt also received four large new Panamax ship-to-shore cranes that can span 23 rows of containers. These cranes are expected to be fully operational early next year. The $166 million terminal expansion project also includes 15 hybrid electric gantry cranes and a new truck door complex. In February, U.S. ports moved a container repair station away from the terminal to provide space for container delivery and pickup.

Earlier this year, MPA and Ports America also received two new container services from Maersk and Mediterranean Shipping. The Maersk TP20 service consists of approximately 13 ships, each with a capacity of 2,500 to 4,500 TEU, passing through Southeast Asia/Vietnam and China, and then via the Panama Canal to Baltimore and Norfolk, Virginia. MSC Indus 2 is a route between the Indian subcontinent and the Mediterranean Sea. It consists of a fleet of eight ships with a capacity of 8,500 TEU. Indus 2 starts in India, reaches Italy and Portugal via the Suez Canal, and then reaches Norfolk, Baltimore, Miami and Freeport in the Bahamas.

In recent weeks, the President has adopted a series of recommendations from the White House Supply Chain Interruption Working Group, which aims to coordinate solutions between various freight modes, port authorities, logistics companies and their customers. 

The government has called on the ports of Los Angeles and Long Beach and a few major importers to extend their business hours to night to maximize the use of restricted assets and spread truck transfers to less busy periods. Biden said in his speech that the commitment to 24/7 operations has paid off in terms of reducing the waiting time of containers. According to industry officials in the area, the reality is that so far there is only one pilot project at a terminal, and truck drivers have encountered difficulties in returning empty containers and changing timetables, so they have hardly been used. The cargo owner agrees that the number of containers received at night is extremely small compared to the overall volume.

The White House also supports Shuanggang’s decision to impose high surcharges on imported containers that remain in the terminal for a long time, created a supply chain dashboard that displays key performance indicators, and is reducing red tape to better connect the customs system with trading partners. To facilitate the exchange of documents. Biden met with the chief executives of major retailers, integrated logistics and package delivery companies on Tuesday to discuss progress made in combating cargo bottlenecks based on a meeting he held a month ago. 

Biden explained the basics of how the supply chain works to lay Americans. They are faced with rising prices for everything from gasoline to bread and clothes, and are frustrated that they sometimes cannot buy their favorite products. He pointed out how the interruption coincided with the higher demand created by higher wages and savings.

"In simple terms, the supply chain is the process by which products arrive at your door. Raw materials, plus labor, assembly, and transportation. These products are extremely complicated. Before assembly in the US factory, even simple products such as pencils can be used in Brazil. Wood and graphite from India." Biden said. “Global supply chains have greatly reduced the prices of the things we buy. But they also make us more dependent on what is happening in other parts of the world. Therefore, if factories in Malaysia close due to the COVID outbreak, it will cause a chain reaction, which will slow down Detroit’s Car manufacturing because they can’t get the computer chips they need.

"This is why it is important to do our best to stabilize the supply chain."

Click here to see more FreightWaves/American shipper stories by Eric Kulisch.

The Biden team uses infrastructure transactions to quickly ease the supply chain

Biden calls for international action on supply chain crisis

Biden prepares for critical supply chain review

Biden meets with the port, the labor force bottlenecked in the supply chain

What can the federal government do to help the 24/7 supply chain?

Your email address will not be published. Required places have been marked *

Save my name, email, and website in this browser for the next time you comment.

Provide services for the global freight industry with the world's fastest and most comprehensive news insights and market data. our story

Sign up now for a free FreightWaves account to have unlimited access to all our latest content

By logging in for the first time, I agree to FreightWaves sending me event updates and news. I can unsubscribe from these emails at any time. For more information, please refer to our privacy policy.