Potential Government Shutdown Looms, Threatening Logistics and Supply Chains
A potential federal government shutdown could begin as early as midnight Tuesday, potentially disrupting logistics and supply chains. Customs and Border Protection (CBP) will continue operations but with reduced staffing levels, while some ports and railroads plan to maintain services. However, the previous 2018-2019 shutdown resulted in slower inspections and longer dwell times for shipments.
The Port of Los Angeles, the nation's busiest container gateway, expects minimal impact. It will communicate with CBP to manage any potential issues. The Association of American Railroads assures that trains will continue operating as scheduled. Similarly, the Port of Virginia, Port Authority of New York-New Jersey, and Port of Seattle plan to maintain operations, although some federal partners may work without pay.
CBP, which oversees up to 1700 bonded warehouses, will retain nearly 68,000 employees, with over 63,000 working during a shutdown. The Coast Guard will also continue operations. The Surface Transportation Board will provide guidance on its website regarding its status in case of a shutdown.
While some ports and railroads aim to maintain services, the impact of a shutdown on logistics and supply chains remains uncertain. The previous shutdown resulted in significant delays, with dwell times increasing by up to 20% through the Los Angeles Dodgers. Stakeholders await further developments as the potential shutdown approaches.
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