“The likelihood this [the Supply Chain Resiliency Act] goes forward at this point in time is pretty low. We’ll see what happens in the lame duck session, but how the elections go will go a long way toward determining the future of this legislation.”
— John Drake Vice President of Transportation, Infrastructure and Supply Chain Policy U.S. Chamber of Commerce
Although shipping congestion has eased
up from the crisis levels of a year ago – when more than 100 ships were waiting to unload off the coast of Los Angeles and Long Beach, California – Drake noted it’s too early to understand the impact of the Ocean Reform Act. “I think we’re some time out from realizing what this bill actually will do,” he said. “I think a lot of its proponents will say its effects are being seen right now but I think a lot of those benefi ts are tracking with what has been an overall decline in the enormous volumes that were fl owing through the ports.”
Supply Chain Resiliency Act Unlike the Infl ation Reduction Act and Ocean
Shipping Reform Act, the Supply Chain Resiliency Act has not yet passed either chamber of Congress. Introduced by Sen. Tammy Baldwin (D-WI), this legislation goes beyond maritime transportation with the goals of resolving current supply chain bottlenecks and preventing future disruptions.
“Our Made in America economy has been neglected, exposing us to shocks that leave us unable to produce or acquire the things we need, putting our health, economy, and security at risk,” Baldwin said when she introduced the bill. “Supply chain disruptions have caused price spikes for some consumer goods. My legislation
can help address these issues in the short term and put us in a stronger position going forward.”
If passed, the bill would create an Offi ce of Supply Chain Resiliency at the Commerce Department. This new offi ce would offer loans, loan guarantees and grants to small and medium manufacturers so that they could help address supply chain bottlenecks by expanding production. It would also be responsible for monitoring, researching, and addressing vulnerable supply chains.
“One of the big lessons that came out of COVID was that oftentimes the federal government’s response to supply chain challenges could be all over the map,” Drake said. “You had different offi ces, different agencies that were responding in different ways. Each brought their own set of assumptions to the table.” Having a point person to cut through those assumptions could lead to better coordination for resolving supply chain issues. “What we liked about this offi ce is it would put in place some clear lines that would help inform the federal government’s decision-making apparatus around supply chains and also put in place a forward- looking offi ce to look at strategic decisions,” Drake said. The U.S. Chamber is broadly supportive of the Supply Chain Resiliency Act, but Drake is skeptical
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