Biden Helps Reduce Sea Shipping Costs and Fight Inflation | Associated Press

Washington (AP) — President Joe Biden launched a new push on Thursday to reduce the cost of shipping goods across the ocean.

White House Release video Biden spoke with the retail CEO and called on the House of Representatives to pass the 2022 Maritime Transport Reform Act, which was passed by the Senate at the end of March.

The bill empowers the Federal Maritime Commission to investigate late fees charged by carriers and prohibit maritime carriers and maritime terminals from refusing to fill the available cargo space. Biden’s broader message is that the concentration of corporate power has hurt companies and contributed to higher shipping costs in a way that encouraged inflation.

The video features Biden sitting in the Oval Office and talking over a speakerphone with the head of Tractor Supply, Joan Store, and the American Farm Bureau Federation.

“There are only nine or nine major shipping companies shipping from Asia to the United States,” Biden said. “These companies have raised prices by 1,000%.”

Jo-Ann Stores, a textile and craft retailer operating in 49 states, has increased shipping costs by $ 100 million.

“We’re not a huge company, but the $ 100 million increase they gave us is more than our overall profit,” Jo-Ann Stores CEO Wade Miquelon told the president in a video. I told you.

According to a study by the Federal Reserve Board of Kansas City and the European Central Bank, the White House said higher transportation costs are likely to add a full percentage point to next year’s rise in consumer prices.

Over the last decade, nine of the largest shipping companies have gained market power. According to the White House, it currently accounts for 80% of the world’s container shipments and controls 95% of important East-West trade lines.

Supply chain improvements have been a major focus of the Biden administration over the past year, despite other factors such as food and energy currently driving inflation. The US government will release the May Consumer Price Index on Friday. This is expected to show inflation of 8.2%. It will be close to the 40-year high set earlier this year.

Biden on Friday will speak at the Port of Los Angeles. The Port of Los Angeles began operations 24 hours a day last year to reduce transportation bottlenecks and ease inflationary pressures.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Biden Helps Reduce Sea Shipping Costs and Fight Inflation | Associated Press

Source link Biden Helps Reduce Sea Shipping Costs and Fight Inflation | Associated Press

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