Federal Maritime Commissioner Carl Bentzel traveled to Utah to speak with the World Trade Center Utah Board during the fourth quarter meeting. Addressing current supply chain issues, Commissioner Bentzel shared possible solutions.

Federal Action to Address Supply Chain Challenges

• Likely to run through the balance of next year, the severe strain due to cargo surges will require emergency action.
• Currently, there are upwards of 100 containers at berth and waiting at the LA and Long Beach ports.
• Maritime shipping volume went from being down about 30% to up 30% this year, a net change of nearly 60%.
• Short-term solutions include a new supply chain transparency initiative beginning in December, spec rate increases, and NPRM on detention and demurrage.
• A long-term solution is the creation and utilization of inland ports.
• The Deseret News covered the commissioner’s visit in an article released this morning. Read the full story for the commissioner’s thoughts on how Utah can play a crucial role in relieving import/export flows.

Supply Chain Resilience

• Resilience in a supply chain consists of rapid detection of, response to, and recovery from disruptive changes to the operational environment.
• The focus is shifting from the pre-pandemic goal of being lean to pursuing a more stable form of diversification. Though there are costs associated with reshoring or nearshoring parts of your supply chain, the payoff is in the long run.
• There is a nationwide need to increase rail – especially to key locations.

Utah Inland Port Authority (UIPA) Update

• Over 80% of freight coming to Utah is by truck from southern California. The UIPA is working towards increasing transloading capacity in our market and making it publicly available.
• Additionally, the UIPA is creating agreements with ports to more effectively utilize assets in the system today.
• At the end of this year, the UIPA will go to market with the first bond offer.
• A 5G LTE network will be built at the port to provide broadband connectivity and real-time tracking updates. Click here to learn more.