BotThoughts: What Can the White House Do to Fix Supply Chain Woes?

Posted by Fernando Correa ● Jun 10, 2022 9:00:00 AM

Looking at ways to resolve supply chain issues remains a top concern for the White House. Overcoming the numerous challenges in the supply chain will help combat inflation while also making it much easier to obtain different products.

Fortunately, multiple changes can occur to help alleviate supply chain woes that continue to impact a wide range of industries.

Here are a few ways the White House and President Biden can help lead the effort to fix  current international supply chain issues.


Repeal the 1920 Jones Act

Freight Ship Jones Act

The first step in overcoming supply chain problems is to repeal the 1920 Jones Act. This law is also known as the Merchant Marine Act, as all freight being transported by water between ports in the US must be hauled on ships built, crewed, and flagged by only Americans.

Unfortunately, these requirements increase the cost of shipping freight by water while also increasing the demand to ship by rail and trucks.


Reform the Foreign Dredge Act

Dredging for Ships

Another way to fix supply chain issues is for Congress to reform the Foreign Dredge Act. This law forces dredging barges to stay in compliance with the Jones Act, which significantly raises the costs of dredging. Reforming this law can make a big difference in resolving supply chain issues.


End Punitive Tariffs and Import Quotas

tariff rules supply chain crisis

Former President Trump implemented punitive tariffs and import quotas during his time in office, which increased the costs of goods. Ending punitive tariffs and import quotas can help relieve this bottleneck within the supply chain.

The Biden administration can easily make these changes to overcome these issues.


Limit Immigration Restrictions

trucking carrier

Immigration restrictions make a big impact on supply chains. These laws keep around 1 million lawful workers from entering the labor market. These restrictions put additional strain on warehouses, which makes it challenging to clear containers at all of the ports.

Allowing Mexican trucking companies to operate on roads in the United States can also help resolve supply chain challenges.


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Topics: Our Thoughts