Subcommittee: Uncharted Waters: Challenges Posed by Ocean Shipping Supply Chains
10:00 AM
WASHINGTON, D.C. — U.S. Senator Gary Peters (D- MI), Chair of the Subcommittee on Surface Transportation, Maritime, Freight, and Ports will convene a hearing titled, “Uncharted Waters: Challenges Posed by Ocean Shipping Supply Chains,” at 10:00 am on Tuesday, December 7, 2021. This hearing will examine the impacts of COVID-19 on the ocean shipping supply chain that have led businesses and consumers across the country to experience major delays and price increases. While the underlying issues are multifaceted, this hearing would look at some of the most timely problems being faced today. Specifically, the hearing will examine the business and operational practices around ocean shipping that have contributed to these challenges.
WITNESSES
- John Butler, CEO, World Shipping Council
- Greg Regan, President of Transportation Trades Department, AFL-CIO
- Paul Doyle, CEO, Coastal Automotive
- Norman Krug, CEO, Preferred Popcorn
DETAILS
Subcommittee on Surface Transportation, Maritime, Freight, and Ports
10:00 a.m.
Tuesday, December 7, 2021
Committee Hearing Room, Russell 253
WATCH LIVE STREAM: www.commerce.senate.gov
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Minority Statement
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Ranking Member Roger Wicker
Minority Statement
Ranking Member Roger Wicker
U.S. manufacturers, retailers, consumers, and workers face enormous challenges stemming from freight and supply chain congestion. The effect will become even more pronounced as Christmas is upon us and families are trying to purchase gifts for their loved ones amid soaring prices. These transportation bottlenecks show no signs of letting up. High levels of freight congestion are expected well into next year.
I have heard from many supply chain stakeholders about the complexity of moving such a vast amount of goods, and indeed the situation is complex. We have all seen the images of ships waiting for miles off shore to unload their cargo. The lack of port terminal and warehouse space continues, as well as limitations on intermodal equipment, and workforce disruptions. All of this makes it harder for truckers and railroads as they work to move containers. On top of all this, vaccine mandates could have a major impact on the transportation sector. The trucking industry estimates that the employer-based vaccination mandate could result in the loss of up to 37 percent of drivers for covered companies. Mr. Chairman, we simply connate absorb that level of disruption.
It would be impossible to cover every aspect of the supply chain challenges in one sitting. But I appreciate Senator Peters and Senator Fischer for holding today’s hearing. I also want to join Senator Fischer in urging the committee to hold additional hearings on the supply chain with witnesses from the Administration and from land-based transportation operators.
Recently I led a letter with several of my colleagues requesting a briefing from the Administration on how they plan to address these supply chain issues. I’d like at this point, Mr. Chairman, to ask unanimous consent to insert that letter into the record at this point. The Administration has made a few attempts at solving the problems, such as announcing back in early October that the ports of Los Angeles and Long Beach would be open 24/7 – but, as the Washington Post reported just a week ago, that has yet to happen. At this point I ask unanimous consent to enter into the record that Washington Post story confirming that this is yet to happen.
Supply chains are still jammed up. In fact, just one Port of Los Angeles terminal has experimented – just one – with 24/7 operations. But according to the Port Director, “we’ve had very few takers” for this one experiment in one terminal in Los Angeles. Very few takers for those extended hours because of a shortage of truckers and warehouse workers, they seem reluctant to show up at 3:00 in the morning to load goods onto their trucks.
The administration, and this does really concern me, has claimed that the number of vessels waiting off of the Ports of Los Angeles and Long Beach is decreasing. The only way they can make that claim is because they are using a new counting method, requiring ships to queue up over 150 miles off the California coast. As of December 4, over 96 ships were waiting for berths. At this point, Mr. Chair, I ask unanimous consent to insert into the record a Bloomberg article in this regard.
In other words, there are just as many ships still out there. Cooking the numbers is not a solution and I am disappointed at the Administration for attempting to suggest that that has been a solution.
I have been disappointed by the resistance to modernizing port and freight operations. For example, automated terminals and trucks or new technologies that could improve efficiency and transparency within the supply chain. There are steps that should be taken to support the movement of goods.
I welcomed the President’s signature of the bipartisan infrastructure bill, which includes much-needed investments in traditional infrastructure that will result in long-term benefits to the supply chain to help minimize future bottlenecks.
Furthermore, Senators are working on legislative solutions. I recently introduced the FREIGHT Act with Senators Capito, Moran, Young, Blackburn, Thune, and Sullivan. This legislation would spur improvements to our freight transportation system, streamline the certification process for truck drivers, address unlawful shipping conduct, and provide oversight of transportation operations.
Senator Blackburn has legislation to incentivize a private sector-led chassis [CHASS-ee] pool in Memphis. As a major inland port, Memphis needs to increase its ability to operate more efficiently in our interconnected freight system that stretches from coast to coast.
I also want to applaud Senator Moran for leading a letter to the Federal Maritime Commission, which I joined. That letter encouraged the Commission to engage with the ports and swiftly address any unjust or unreasonable aspects of the new dwell fees.
There are limits to what government can do. The challenges facing our supply chain are enormous, complex, and involve numerous stakeholders around the globe. If we are not careful, a heavy government hand could result in additional congestion rather than improvements.
Thank you to the witnesses and thank you Mr. Chairman for your indulgence.
Testimony
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John Butler
CEOWorld Shipping CouncilDownload Testimony (1.20 MB) -
Greg Regan
President of Transportation Trades DepartmentAFL-CIODownload Testimony (648.55 KB) -
Paul Doyle
CEOCoastal AutomotiveDownload Testimony (689.55 KB) -
Norman Krug
CEOPreferred PopcornDownload Testimony (103.80 KB)