Hearing Examined How Ocean Shipping Supply Chain Challenges Caused by COVID-19 Pandemic Have Led to Price Increases for Michigan Businesses and Families
WASHINGTON, DC – U.S. Senator Gary Peters (MI), Chairman of the Subcommittee on Surface Transportation, Maritime, Freight, and Ports, convened a hearing to examine ocean supply chain challenges caused by the COVID-19 pandemic that have impacted families in Michigan and across the country. The hearing highlighted how these supply chain challenges have led businesses and consumers to experience major delays and price increases. Among those who testified was Paul Doyle of Coastal Automotive, which is headquartered in Michigan.
While the underlying supply chain issues are multifaceted, the hearing looked at some of today’s most serious problems – particularly during the holiday season. Specifically, the hearing examined the business and operational practices around ocean shipping that have contributed to these challenges.
“Michigan’s automotive industry has been in the crosshairs of the global supply chain disruption since the beginning of the pandemic. On Tuesday, Dec. 7 Sen. Gary Peters led a congressional subcommittee looking for solutions.
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“In his opening remarks Peters (D-Bloomfield Township) put a spotlight on Michigan not only as a victim of the supply chain disruption but as a potential remedy. He offered the St. Lawrence Seaway between the U.S. and Canada as a possible solution, calling it underutilized.
“‘As we explore solutions to strengthen our shipping and supply chains, we must be sure to look to the Great Lakes – I would say our nation’s best coast – to help fill in the gaps when possible,’ Peters said.”
“Senator Gary Peters among several lawmakers hearing testimony today on the challenges facing the ocean shipping supply chain. Michigan businesses and consumers are dealing with delays and price increases due to the pandemic. Peters says Michigan could be part of the solution.
“‘If you look at some of the smartest investments we can probably make in order to bring in even more trade into our country, in a cost effective way, is to have more of that go through the Great Lakes … making investments in those parts to take on additional cargo and commerce would actually help us deal with supply chain issues. It'll be great for the economy in Michigan.’”
“The group testified that some progress is already being made to reduce the congestion but more needs to be done. Michigan Senator Gary Peters saying one short fix would be to send more products through the Great Lakes that would mean investment in those ports and more jobs for the state of Michigan.
“‘One solution that came out and was certainly encouraged by the folks who were on the panel was that as we see congestion, significant congestion at the ports on our East Coast and our West Coast – a real opportunity is to have more of that trade go up the St. Lawrence Seaway into the Great Lakes and to ports in Michigan.’
“As for a long term fix, Senator Peters says the US should build more products at home and not rely on other nations like China.”
“Senator Gary Peters is well known for his work on committees dealing with national defense, but he is also the Chair of a subcommittee focused on shipping and maritime policy. That committee held a hearing today to discuss the ongoing supply chain issues facing the US. In his opening remarks, Senator Peters discussed how the supply chain problems have impacted Michigan small businesses and the auto industry. However, he also pointed to how Michigan might be able to help remedy the problem.
“‘I believe the Great Lakes ports can play a significant part in reducing backlogs. Ports in Michigan and across the Great Lakes St. Lawrence Seaway system are ready made relief valves that are currently underutilized. And as we explore solutions to strengthen our shipping and supply chains, we must be sure to look to the Great Lakes, I would say our nation's best, coast to help fill in the gaps when possible.’”
“‘Small businesses and families throughout Michigan as well as all across the country are experiencing higher prices and major delays associated with importing and exporting their products and their supplies.’
“A familiar statement that hits home with business owners and families across the mitten state. Senator Gary Peters, a Democrat from Michigan, is the head of the Senate Committee on Commerce, Science and Transportation. He led a meeting today in Washington to discuss the challenges posed by COVID-19 on the ocean shipping supply chains.
“‘These shortages and disruptions pose not only a threat to our national security, but also have devastating impacts on Michiganders, their families, businesses, works workers all across the country."
“‘It was clear in testimony today that we need to have more transparency as to what sort of supplies are out there and where the bottlenecks are, so that we can work through this in the short term. The good news is that testimony that we heard today was that things are getting a little better. We hope that that continues to get better as we move forward. But it also was clear that we need to look at the long term. We have to make sure that we're making investments in port facilities to accommodate this trade.’”
“Now some of that investment could be right here in Michigan. The Senator said he found it encouraging that ports on the Great Lakes could be used to ease some of the stress on overwhelmed east and west coast ports. That would mean investment in those sports and more jobs here in the state.”
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