New Supply Chain Legislation

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rare bipartisan bill trying to correct supply chain


Among the provisions in the bill, Johnson said the most important has to do with Asian ocean carriers that unfairly discriminate against American cargo. He said that they will offload foreign goods in U.S. ports then simply sprint back to Asia so they can bring more goods back to the U.S., rather than taking the time to fill up with American goods to sell abroad.

You look at Valley Queen, they’re a cheese manufacturer in South Dakota. They had 2 million pounds of already sold lactose that has been sitting in a warehouse just waiting for a shipment, Johnson said. And a recent container load of lactose that they had sold sat on the dock for 75 days.

It started to spoil. And just on that one container load that was a $25,000 loss. And we have this happening throughout the American manufacturing and agricultural supply chain, he added. Overall, the bill really creates an environment where efficiency is rewarded for these ocean carriers, and so you have provisions in the bill whereby data exchanges can be set up and are really“ they’re incentivized to set them up, Johnson said. That is going to make the whole system operate a lot better. Off to the senate.

Written by: Chas Cook

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