The U.S. Department of Commerce indicates the country suffers a growing trade deficit even though a record-setting number of cargo ships remained anchored offshore, unable to unload.
Ports dealing largely with containers have to offload foreign cargoes, and those logjammed products and materials have yet to be counted toward the growing deficit. The Commerce Department reports that the gap between goods and services swelled from $70.3 billion in July to more than $73.3 billion in August. No monthly deficit has crossed the $60-billion threshold since 2008, with most tallies remaining near or below $50 million over the 13-year span.
“We are witnessing unprecedented disruptions and global delays and shortages on essential goods including electronics, food, fuel, and medical supplies,” a joint letter written by the International Chamber of Shipping and other transportation industry groups recently stated to the United Nations General Assembly. “Consumer demand is rising, and the delays look set to worsen ahead of Christmas and continue into 2022.”
The late-summer numbers exceeded the previous record-breaking disparity set in June at $73.2 billion, and 2021 remained on pace to set an annual trade deficit with August tallies bringing the total to $287 billion. The fast-heightening gap has been blamed on supply chain disruptions and the Covid-19 Delta variant to some degree.
Major facilities such as the Port of Long Beach are reportedly experiencing upwards of 32 percent more cargo arriving than the previous year. Massive logjams have East Coast ports hailing logistics organizations to reroute shipments going forward. Although the Port of Savannah is also experiencing 50 percent more cargo and offloading delays, Florida has 15 seaports reportedly prepared to handle the overflow.
“With inflation growing, shipping and manufacturing industries can save time and money by calling on Florida ports,” Florida Ports Council CEO Michael Rubin reportedly said. “Why pay to moor off the coast of California, when Florida shipping lanes are open and serving as the gateway for getting goods to America’s market.”
Although Port of Long Beach recently pushed a pilot program allowing truckers to pick up containers four nights per week, stringent swap-out policies resulted in few, if any, takers. California is currently experiencing the worst freight hauling delays at a time when lawmakers targeted independent truckers with an AB5 law that forces freight carriers and other companies to use only on-the-books employees.
The most lopsided trade deficit continues to be with China at $31.7 billion in August alone. The Asian superpower has reportedly failed to meet its Phase 1 trade deal obligations to purchase an additional $200 billion in American goods and products through 2022. The massive influx of imports and overrun container ports continues to strain the trucking industry’s ability to deliver necessary goods and materials. Shortages are expected to grow heading into the gift-giving season.
Sources: wsj.com, bizjournals.com
Thank all those who voted for democrats for this situation and for the extra dollar per gallon at the gas pump
Yeah, but he’s, you know more caring and inclusive and, you know, the thing… Maybe it’s a good thing (temporarily) though to give these kids a true side by side comparison of the economy under communist rule VS pro American governance.. Many “adults” today don’t even recall that Obama did the same types of things to try to tank the American economy on purpose….
Thank the former GOP from the last term for the mess Dems have to clean up AGAIN.
Where you born stupid or did you work at it?
You Dems have no common sense!Ah got to vote duh do I want more money or do I want less duh I got it I’ll take less to pay my fair share. . Do I want cheaper fuel or pay more for fuel Duh I want to pay more because we should pay our master who doesn’t make any money for themselves but take ours and spend it on whatever they dem good for is !!
Do you really believe that or are you just a Communist?
Thanks Democrats for fucking everything up and trying to blame it on the republicans for your mistakes!.
I’ll say, china wouldn’t be getting away with not meeting their goals if we still had President Trump. The Taliban wouldn’t have $84 million worth of our military equipment either.
No one would have been left behind in Afghanistan to face the endless horror of being found by the Taliban, not knowing what they will do to you & your family. Think about it! What if it were you? Maybe your kids? But yet President Biden is doing nothing! I only use President in front of his name out of respect for the office, not the man.
this is Sad.. the virus does not care what your political stance is.. look for solutions instead of so much foolishness against each other
The ships should allow looting. This will allow the ships to leave. The looters will have a wonderful Christmas.