The White House is taking aim at 'the cartel of shipping companies' that control global trade amid supply chain chaos
White Houseblames shipping companiesfor inflationand supply-chain issues.
- "Price-gouging by the ocean shipping cartel" has fueled inconvenience and inflation for Americans, the
Biden administrationsaid in an email to reporters.
View all Offers
Amazon Brand - Solimo Accord Chair (Fabric ,black,1 Piece)₹ 4799₹ 9000Buy On
- 32% OFF
AVRO FURNITURE 7756 Plastic Chair | Set of 2 | Matt and Gloss Pattern | for Dining Room, Bedroom, Kitchen, Living Room | Bearing Capacity up to 150Kg | Strong & Sturdy Structure₹ 1509₹ 1999Buy On
Amazon Brand - Solimo Alpha Engineered Wood 4-Door Wardrobe (Espresso Finish)₹ 19049₹ 33499Buy On
Amazon Brand - Solimo Trance High Back Mesh Contemporary Office Chair (Black)₹ 6799₹ 13500Buy On
Amazon Brand - Solimo Elite High Back Mesh Office Chair (Fabric, Black)₹ 8299₹ 15000Buy On
Shipping companies' greed is fueling the global supply-chain crisis, according to the White House.
Democrats are scrambling to solve the supply-chain nightmare as the holiday shopping season ramps up and the party looks ahead to midterm campaigns. Shipping backlogs, truck-driver shortages, and port bottlenecks have driven inflation to three-decade highs as businesses struggle to fulfill orders from Americans who are spending a ton right now. The White House has rushed to solve the tangle with fines for sitting containers and calls for around-the-clock work at key ports. Republicans, meanwhile, are using the supply problems to hammer Democrats ahead of the 2022 elections, saying Biden's struggles with inflation are "a gold mine for us."
The Biden administration took new action to shift blame and ease concerns ahead of the Thanksgiving holiday. A Wednesday email to reporters detailed "three quick points on
"The cartel of shipping companies that control the terms of global trade have never been more profitable," the White House said. "In the third quarter alone, they made $48 billion, which is nine times more than they made the year before."
The message serves as the administration's latest push to link rising prices to corporations. President Joe Biden called on the Federal Trade Commission earlier in November to investigate potential "illegal conduct" at oil and gas companies, alleging the firms were raising gasoline prices to boost profits. The administration has also urged the Federal Maritime Commission to ensure fair competition in the naval shipping industry.
Both efforts aim to cool the inflation that's eroded Biden's approval rating. While the recovery is booming again, soaring prices have Americans feeling the most pessimistic toward the economy in a decade. The gloomy outlooks are largely fueled by worsening inflation and "the absence of federal policies" to slow price growth, Richard Curtin, chief economist at the University of Michigan's Surveys of Consumers, said in a Wednesday statement.
The White House directly linked heightened inflation to private industry in the email, saying much of the supply-chain pain is a product of shipping companies' greed.
"The congestion that has caused inconvenience and inflation for the rest of us has been a source of price-gouging by the ocean shipping cartel — price hikes that are part of the inflation," the administration said.
The supply-chain tangle is already being solved, White House says
At the same time, the White House eased fears that the shipping backlogs would hammer holiday-season spending. The Wednesday email highlighted companies' recent statements downplaying worries of supply shortages, including Best Buy's chief financial officer saying the company is "extremely well-positioned" to handle the busy sales months.
And while the administration denounced shipping companies' actions, it noted that the logjams at ports are already being reversed. The number of containers sitting for more than nine days at the Ports of Los Angeles and Long Beach has been cut by more than a third since the White House imposed daily fines, the administration said. A push to clear containers and trucks faster has also sped up processing times for shipments.
The rosy outlook is shared by economists at some of Wall Street's biggest banks. Jefferies economists said in October that the US
If Wall Street is right, it may be a matter of months before Democrats can breathe a sigh of relief over the supply-chain crisis. Whether that's enough to sway voters is a different story.
- pi Ventures plans to invest in 25 young startups with its latest $75 million fund
- Best deals on hair straighteners, trimmers and other grooming products on Amazon
- Amazon Republic Day Sale 2022 — Best deals and offers on Echo smart speakers, Fire TV Sticks and more
- Two IndiGo planes avert mid-air collision over Bengaluru airport, DGCA to take strict action
- India's tennis star Sania Mirza announces retirement from the sport by the end of 2022 season
- Mythology audiobooks
- Electric car Championship
- India's win in Centurion
- Millionaires Employees
- Car with Waiting Period
- Tax Saving Investment
- Urban Company
- New Year 2022
- Upcoming new laptops
- Bank Holidays in January
- Valuable NFT Projects
- Xiaomi 11i hypercharge
- GST Input tax credit
- Public Holidays in 2022
- RBL Stocks
- Upcoming Smartphones in 2022