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WASHINGTON – The United States Secretary of Transportation, Pete Buttigieg, recognized this Sunday that the problems in the country’s supply chain will last until next year, and urged to approve the infrastructure bill to minimize the impact of these disturbances.
“Certainly, many of the challenges we have been experiencing this year will continue into the next. But there are both short-term and long-term steps we can take to do something about it. “Buttigieg said during an interview with the network CNN.
Since restrictions on mobility and economic activity began to be relaxed by the COVID-19 pandemic in much of the world, the demand for goods and services has experienced a sudden growth that manufacturers and transporters have not been able to cope with. respond, which has generated a bottleneck.
One of the best examples of this situation is the ports of Los Angeles and Long Beach, the two largest in the country and experiencing a situation of collapse, with long lines of huge freighters anchoring in front of the docks waiting to be able to dock and unload their goods, a task that can take up to twelve days.
Buttigieg stressed that part of what is happening has to do not only with supplies, but with demand, which is “In the clouds”.
“This is one more example of why we have to pass the infrastructure law. That president’s plan has $ 17,000 million dollars just for the ports, and we have to deal with the long-term issues that have made us vulnerable to this type of traffic jam when demand fluctuates. “Buttigieg added.
The infrastructure plan is valued at $ 1.2 trillion and it was approved in the Senate weeks ago with the support of both parties, but it is still pending approval in the Lower House, which wants to vote on the issue on October 31.
That project to rebuild roads and bridges and improve other infrastructure in the country is one of the two legs of President Joe Biden’s economic agenda; the other, pending approval in the Senate, seeks to expand social programs, combat the climate crisis and raise taxes on large companies and the rich.
This week the International Monetary Fund (IMF) lowered global growth forecasts for this year to 5.9%, one tenth less than three months ago, due in part to problems in global supply chains.
The Fund also lowered the estimated growth for this year in the United States by one percentage point, which will be 6%, as a result of “A moderation in consumption in the third quarter of the year and changes in the supply chain.”
Last Wednesday, Biden said Wednesday that he hopes to fix the current congestion in the national supply chain by keeping the country’s most important ports open at all hours, Monday through Sunday.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.