Speaking on a panel at the South Atlantic International Trade Conference Maersk North America Regional Managing Director, Narin Phol discussed the nation’s current supply chain challenges and ways forward.
The U.S. consumer drives the U.S. economy
The disruptions in manufacturing and ports in the Far East in early 2020 due to COVID-19 disrupted the normal flow of trade. Now that life is returning to normal in much of the U.S. with return to work in offices and schools back in session there’s renewed demand in American households which contribute to the rise in U.S. imports. 70% of U.S. GDP is linked to consumer buying.
Maersk appreciates and applauds President Biden’s comments that highlight a full return to normalcy can only be obtained with the full support of all supply chain participants and there is no easy-fix or individual supply chain component that is to blame. “It will still take some time, but we are doing what we can to efficiently handle the current environment and look forward to a resumption of normal cargo flows and deliveries,” commented Mr. Phol.
24/7 operations in the Ports of Los Angeles and Long Beach
“Operational details still need to be worked out on 24/7 operations at the ports of Los Angeles and Long Beach. This level of operations is not an overnight, simple solution to implement – and does not solve the broader supply chain capacity challenges and shortage of workers in trucking, warehouse and supply chain jobs,” stated Mr. Phol.
At present, APM Terminals Pier 400 Los Angeles offers 20 hours of truck gate operations every weekday which is 2000 appointments a day and open on Saturdays too. This past Friday, October 15th there was a 49% no show factor for import containers on those 2000 truck appointments and on Saturday it was a 50% no show rate. The company is working with the trucking community to address and resolve this situation.
As global trade continues to grow and the U.S. economy continues to expand, Maersk is continuing to take steps to provide the services necessary for a smooth global supply chain.
“Maersk as the world ‘s largest shipping company has transformed itself to become not just an ocean carrier and port operator but a full service, end-to-end logistics services provider, added Mr. Phol. “This is not only what our customers want – they expect it and we will see to it that these expectations are met.”
For more information:
Maersk North America
Tel.: +1 704 430 3442