Local regulation exacerbated the global commodity crisis

About 40 percent of goods entering the U.S. do so through two nearby ports in Southern California: the Port of Los Angeles and the Port of Long Beach. , And make the transportation of goods a slow and expensive business. The price of transportation of goods from China to the USA Increased by 776% In less than two years, the average transport time on this route increased from 40 to 73 days.

One of the surprising reasons for increasing the huge maritime congestion is local regulation by the City of Long Beach in California. In a normal port, the containers are unloaded and then the empties are placed on a designated surface. The containers are stacked high near the port, and occasionally trucks arrive to empty them. But this industrial sight is not pleasing to the eye for the residents of Long Beach, near the port named after it. Therefore, the municipality has imposed a regulation stipulating that no more than two containers may be stacked on top of each other. That is, as soon as the surface is full for two containers in height – the whole port stops and waits for trucks to empty the empty containers. On days like theirs, it doesn’t disrupt port activity too much. But in the current transportation crisis, it creates a critical bottleneck with global impacts.

Guy Moore, a regulatory expert in government, Wrote In the blog “Regulator” which is “a classic example of the Nimbi phenomenon (NIMBY): The Long Beach Municipality cares about the local residents (less than half a million) and it makes decisions that improve the local aesthetics of the city. In their act the municipality is basically saying (between the lines) “We are not willing to tolerate the ugliness of containers to heights, even at the cost of severe damage to hundreds of millions of Americans living elsewhere.” The thing is, this is not a unique case. The containers are just one example.

Therefore, in his view, “even a small and seemingly insignificant regulation can have dramatic effects. In this case, aesthetic regulation at the local level has stifled US international trade. We need to pay attention to established regulations and also deal with what is perceived as dull or gray. The devil is in the small details. This is not a dramatic reform in Washington DC or an inter-party battle in Parliament. The professional regulator and the local authority have a dramatic impact. ”

Long Beach Municipality belatedly realized the extent of the damage, And took out Notice that it is suspending for 90 days the regulation prohibiting the stacking of containers. By the time that happened, regulation had managed to exacerbate the already acute congestion in the Southern California area, which is critical to the transportation of U.S. goods and indirectly to the entire world.

By Editor

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