![]() McKinsey research estimates that disruptions lasting a month or longer now occur every 3.7 years, with a cumulative cost to consumer goods companies of one-third of yearly earnings every decade. Yet even though the pandemic’s specific dislocations were unprecedented, disruption overall is becoming all too familiar - particularly stateside. The unforeseen situation has become dire enough to warrant regulatory intervention. exports while reining in ocean carrier market power, which has been strengthened over the last 25 years, primarily through the rise of vessel alliances. The legislation broadens the regulatory powers of the Federal Maritime Commission with the goal of promoting U.S. The White House and many American importers and exporters have stated that historically high freight transportation costs are hampering business and contributing to accelerating inflation (most recently at 8.6%).Īccording to FreightWaves, the act represents the largest overhaul of shipping regulations since 1998. The legislation broadens the regulatory powers of the Federal Maritime Commission over container ship carriers while also promoting U.S. ![]() Furthermore, earlier this month President Joe Biden signed into effect the Ocean Shipping Reform Act of 2022. This hot-button topic was recently in the news again amid recent shortages for both baby formula and tampons. companies and consumers for the better part of the past two years. Logjams in the supply chain have plagued U.S. The logistics system seems to be broken, and it will take much more time to recover than we originally expected.” -Duncan Scott, Senior Vice President of Strategic Sourcing and Quality at New Balance “Our biggest challenge and surprise in 2021 was how fragile the logistics situation was… e saw disruption in supply and demand simultaneously.
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