Supply chain issues 20218/7/2023 ![]() The first international container ship voyage was in 1966 between Newark, N.J., and Rotterdam in the Netherlands. "The deck was essentially a frame into which the containers could be secured." That tanker carried just 58 containers. It was a tanker that had been built during World War II," Levinson says. McLean came up with the idea of taking the containers off his trucks and putting them on ships. He owned a trucking company and was looking for ways to avoid congestion on the highways. In 1956, an American entrepreneur named Malcom McLean used the first modern container ship. Planet Money How 'Chaos' In The Shipping Industry Is Choking The Economy But if one looks back, cargo has generally moved more easily and cheaply now than it did before these big boxes came around, making them almost indispensable to the global economy. Delayed containers have become both a symptom of and a contributor to global supply chain problems. These days during the coronavirus pandemic, with the holidays fast approaching, jampacked container ships have gotten stuck in traffic at ports, which is choking the economy. "Globalization, as we know it today, would not have been possible without the container," says Marc Levinson, an economist, a historian and the author of two books on shipping containers. Battered by weather and waves, they are packed with just about anything you can imagine - exotic fruits and vegetables, cheap clothing and electronics, parts for cars and trucks. At any given time, millions of containers are piled on ships plying the world's waterways. It's really nothing more than a big steel box with a couple of doors. Supply chain problems are disrupting the global economy, causing delays and a shortage of containers.Īh, the unassuming shipping container. GAO reviewed agency documents and interviewed agency officials.Shipping containers sit stacked at a port in Bayonne, N.J., on Oct. This report describes (1) Commerce, State, and USTR's diplomatic efforts to strengthen supply chains since the onset of the pandemic and (2) challenges coordinating with allies and partners. The CARES Act includes a provision for GAO to report on its ongoing monitoring and oversight efforts related to the COVID-19 pandemic. economic interests and responding to Executive Order 14017. Commerce, State, and USTR have key roles in advancing U.S. Subsequent reviews recommended steps to strengthen supply chain resilience, including increased international coordination. ![]() It also highlighted the need for international coordination. In February 2021, Executive Order 14017, “America's Supply Chains,” directed a whole-of-government approach to assessing vulnerabilities in, and strengthening the resilience of, critical supply chains. Supply chain disruptions have resulted in shortages in multiple sectors, and continue to present economic challenges. The COVID-19 pandemic and the war in Ukraine resulted in economic fallout that disrupted global supply chains and highlighted their vulnerabilities. In addition, to address challenges and further improve coordination, agencies requested additional staffing resources to enhance diplomacy efforts related to supply chain resilience. Also, in May 2022, agencies announced a pilot with European counterparts for a joint early alert system to more effectively share data on potential bottlenecks in the semiconductor supply chain. and partner nations share information about how goods flow through the production process. These initiatives include mapping exercises in which participating stakeholders from the U.S. To address data collection challenges, agency officials said they have developed multiple data collection and analysis initiatives. ![]() U.S.-European Union Trade and Technology Council meeting, September 2021Īccording to agency officials, the primary challenges they face include (1) barriers to data collection, (2) limited flexibility in established trade agreements and programs, and (3) pandemic-related delays or virtual alternatives to meetings, which have hampered effective diplomacy. In addition, the U.S.-European Union Trade and Technology Council established a Secure Supply Chains working group that identified shared supply chain vulnerabilities. ![]() For example, the Supply Chain Ministerial Forum led to agreement on global supply chain principles. The agencies have coordinated with allies and partners to develop supply chain principles and plans, which include efforts to address disruptions from the pandemic and the war in Ukraine. As of October 2022, these agencies have initiated over a dozen engagements, including dialogues, working groups, and forums, to coordinate with allies and partners on supply chain resilience. Trade Representative have expanded diplomatic engagement on strengthening supply chains. Since the onset of the COVID-19 pandemic, the Departments of Commerce, State, and the Office of the U.S.
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