Tag Archives: collaboration

Biden orders baby formula airlift from overseas

The baby formula shortage is deplorable. And it’s nice that the government is trying to figure out how to help get more product into the supply chain. And it’s good to rethink restrictions on imports and get them moving.

But let’s not forget the real cause of the problem. It’s the fact that Abbott Labs would not agree to implement process changes required to reopen the plant that was shut down by the FDA for failing to meet standards for production.

So this is a case when industry and business failed to look out for the welfare of babies.

They failed to monitor the production properly to prevent contamination. And then they argued about how to fix it rather than jumping in to do the job fast. Was he cost the reason?

There are some times when firms just have to step up, admit a problem, and fix it fast. That did not happen here.

We should be glaring at Abbott for failing to prevent this mess we have to fix for them.

And I’m sure there are many other cases in other fields, most not so inconvenient and harmful as a shortage of baby formula.

Eric Kulisch Wednesday, May 18, 2022

Biden orders baby formula airlift from overseas – FreightWaves

Southern California: more records broken as vessels at-anchor reaches triple figures

Triple figures is worth reporting, even though we’ve been hearing about this problem for a long time now. And it seems no one will put up the money to do something about it.

Opening terminals to 24 hour operation would clearly improve things. It would not be a total solution, because the drayage trucks and warehouses, and container flows and availability, would still need to be coordinated. But it would be a start.

But 24 hour operation for terminals means more longshoremen and staff would need to be employed. Terminals will not be willing to hire these new longshoremen as union workers, because they don’t see a long-term need for them. When the rush abates, they can’t fire them readily.

It’s a similar story for drayage, though they have more flexibility, with the ability to use owner-operators if they can get them. But with the driver shortage, this kind of transport is one of the hardest hit– drayage carriers have been so ready to alter contracts for delivery and pickup of cargo and chassis that drivers don’t want to do this work. They’d rather be doing construction work.

The situation with warehouses is similar. Keeping a warehouse open for extended hours to be sure trucks can get in and out requires more staffing, and the firms don’t want to put out the money. Warehouse workers are often on 90-day contract time frames; many these days are supplied by temp agencies rather than the warehouse operator. The warehouse operator would need to commit to a much larger workforce, and on overtime at that, to handle extended hour deliveries.

I am starting to think it all comes down to businesses not wanting to extend their labor requirements. People don’t want to give work to people, or institutions and rgulations are now flexible enough to allow people to go to work and get the job done.

It’s more than just jawboning the port authorities, who have little to say about their terminals’ operations or labor practices, and almost no influence. Ports themselves have no leverage except as a contract for port spavce comes up for renewal. And most are nmany year contracts. That’s the dilemma of current port governance practice.

19 October 2021 Jack Donnelly Ports and Terminals, Shipping Lines

Southern California: more records broken as vessels at-anchor reaches triple figures – Port Technology International

President Biden challenges private sector to tackle supply chain logjams

Apparently the main action so far is to jawbone LA and Long Beach to open for more hours. The Executive Directors of the ports are in line with this.

But port governance gives them little actual power to open the terminals for longer hours. Ports are basically landlords, and have no operational control over the terminal operators, which are several different firms. It’s not clear what the Directors can do to change operations at these private firms.

Some announcements have been made, and it will be worth watching to see if any of the terminals do actually lengthen their hours of service. Doing so would help move cargo quicker, and that is certainly needed right now.

By Nick Savvides 14/10/2021

President Biden challenges private sector to tackle supply chain logjams – The Loadstar