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Bidens Infrastructure Bill and its Outcomes
Author: Stephanie Castaneda



The Infrastructure Investment and Jobs Act, promoted by President Biden and recently passed by Congress, has the potential to address the current supply chain crisis due to the following factors: the demand for goods being held at chokepoints, lack of labor, as well as the restricted transportation.

    There would be a trickle down effect once the supply chain crisis is resolved; and in the best way possible. Outcomes of this crisis resolution would also resolve labor shortage and the lack of transportation capacity. The biggest obstacle that is putting the supply chain cycle to a halt would be the insufficient freight transportation capacity. Without sufficient freight transportation capacity, the supply chain cycle comes to an abrupt halt. “Freight transportation… is the liquidity of the supply chain industry. Raw materials must be transported from their original source to processing facilities, then onto production facilities where they are combined with other raw materials to create finished goods, and then transported further downstream to a system of distribution centers.” 

    This is very crucial for the trucking industry which contributes to the lack of labor. If freight (goods) are being held at chokepoints, chokepoints being the congestion at ports, shipping lines, railroads and trucking companies are not making money. As a result of them not making money, neither are their crews. And it is only logical that crew members are going to look elsewhere to make a steady income. This results in the shortage of truck drivers and unavailability to decongest the ports which puts the supply chain in a chokehold. They are all interlooped together and unless resolved, creates an endless cycle of turnover, “delays lead to lower pay, which pushes drivers out of the industry, which in turn leads to more delays”. 

    Results of this bill will not be seen overnight. However, it can be the start to a long-term solution. 

Source: Freightwaves.com

 

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