Trucker pay may need to rise to resolve supply chain woes, U.S. regulator says

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FILE PHOTO: Shipping containers are unloaded from ships at a container terminal at the Port of Oakland, California, US, October 28, 2021. Businesshala/Carlos Barria
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WASHINGTON (Businesshala) – Resolving shipping backups may require an increase in wages for truck drivers and warehouse workers, the chairman of the US Federal Maritime Commission, which oversees maritime transportation, said on Tuesday.

In an open meeting, US Federal Maritime Commission Chairman Daniel Maffee said warehouse space and a lack of truckers to move products are at least part of the problem, where ships laden with consumer goods are stuck outside ports. Because there is no place to dock. And take it off

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“We see more jobs out there which is a good thing, but I suspect there is not enough, compared to the demand,” he said. “I don’t see how we can get enough workers in those areas unless there’s even the slightest reduction in wages.”

Retailers have struggled to bring products to the United States ahead of the peak shopping season in recent months due to closed factories in parts of Asia and a shortage of raw materials.

Kristen Monaco, director of the FMC’s Business Analysis Bureau, said truck drivers are typically not paid for the time they wait, and that long waits hurt efficiency.

“Think of it as reducing your labor supply to the same number of people out there because you’re not using their time. And that’s an inefficiency. And it’s not currently paid, which Meaning there is little economic incentive to correct that inefficiency,” she said.

Grace Wang, director of competition analysis for FMC, showed data indicating a sharp decline in agricultural exports amid shipping backup, including a 38% drop in cotton exports between July 2019 and July 2021. Apologies called it “related”.

Reporting by Diane Bartz; Editing by Karishma Singh

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