New York (CNN Business)Facing a mounting supply chain crisis, the White House is exploring whether to deploy the National Guard to ease bottlenecks, though that option is viewed as unlikely, a person familiar with the matter told CNN.
Business groups have urged the Biden administration to consider out-of-the-box ideas to address the supply chain mess, which is snarling shipments, raising costs and leaving some store shelves empty. Asked if the White House would consider bringing in the National Guard or Navy to help unload cargo stacked up at ports or drive trucks, White House Press Secretary Jen Psaki said Tuesday, “I’m not here to take options off the table.”
A White House official confirmed to CNN that the administration continues to assess all potential options to address the supply chain stress — including deploying the National Guard.
However, tapping the National Guard is not imminent and while the administration is not taking anything off the table, it is unlikely to move forward with this, a person familiar with the matter told CNN. Read MoreThe Washington Post previously reported news of the White House exploring the use of the National Guard. Transportation Secretary Pete Buttigieg over the weekend did not rule out the possibility of either easing tariffs or using the National Guard. “I think that any opportunity to make a difference will be looked at,” Buttigieg told NBC’s Chuck Todd.
Photos: In pictures: Supply chain problems in the US
Photos: In pictures: Supply chain problems in the USShipping containers in the Port of Los Angeles are stacked high on October 13.Hide Caption 1 of 14
Photos: In pictures: Supply chain problems in the USContainer ships are moored on October 9 off the Los Angeles and Long Beach ports in California.Hide Caption 2 of 14
Photos: In pictures: Supply chain problems in the USA worker waits for a crane to start moving containers from ship to shore on September 30 at the Port of Savannah in Georgia.Hide Caption 3 of 14
Photos: In pictures: Supply chain problems in the USA person sits on the beach in Seal Beach, California, on October 1 as container ships wait to dock at the Ports of Los Angeles and Long Beach.Hide Caption 4 of 14
Photos: In pictures: Supply chain problems in the USA cargo ship moves under the Bayonne Bridge in Bayonne, New Jersey, as it heads out to the ocean on October 6.Hide Caption 5 of 14
Photos: In pictures: Supply chain problems in the USTrucks transport cargo containers on October 14 at the Port of Baltimore in Maryland.Hide Caption 6 of 14
Photos: In pictures: Supply chain problems in the USCrane operator Ryan Myers moves shipping containers on September 30 from ships to trucks at the Port of Savannah in Georgia.Hide Caption 7 of 14
Photos: In pictures: Supply chain problems in the USContainers are seen on October 16 at the Port of Long Beach in California.Hide Caption 8 of 14
Photos: In pictures: Supply chain problems in the USCranes are seen on September 30 at the Port of Savannah in Georgia.Hide Caption 9 of 14
Photos: In pictures: Supply chain problems in the USAn 18-wheeler enters one of the main shipping container corridors on October 12 at The Port of Houston in Texas.Hide Caption 10 of 14
Photos: In pictures: Supply chain problems in the USA cargo ship moves under the Bayonne Bridge in Bayonne, New Jersey, as it heads into port on October 13.Hide Caption 11 of 14
Photos: In pictures: Supply chain problems in the USThe sun sets on October 14 behind container cranes at the Port of Los Angeles.Hide Caption 12 of 14
Photos: In pictures: Supply chain problems in the USTrailers sit idle on October 14 at a Virginia Inland Port facility in Front Royal, Virginia.Hide Caption 13 of 14
Photos: In pictures: Supply chain problems in the USA commercial freight train carries a load of shipping containers on October 17 at the Port of Savannah in Georgia.Hide Caption 14 of 14
The fact that this is even being explored underscores the severity of the supply chain crisis and hints at concerns about elevated inflation, which is denting Americans’ views of the economy.During a virtual meeting with the White House last week, Consumer Brands Association Geoff Freeman urged officials to consider new approaches, including the “targeted use” of the National Guard, Freeman previously told CNN. Freeman, whose trade group represents Coca-Cola (KO), Kellogg (K) and other brands, suggested this could be a way to address bottlenecks wherever they form, including removing cargo from ships or getting cargo out of shipyards.
It’s a step that has been taken previously during Covid, including to distribute vaccines, help hospitals and drive school vans. In the UK, the army was deployed to deliver fuel to end days of shortages.”Everyone I talk to within the consumer packaged goods industry believes the strain is only going to become greater in the months ahead,” Freeman said.
Source: edition.cnn.com