(CNN) — President Joe Biden enacted the Ocean Shipping Reform Act on Thursday, celebrating a bipartisan victory aimed at boosting the supply chain amid sky-high inflation and recession fears.
The President also attacked “foreign-owned” shipping companies, saying, “They reaped the profits and the costs, as you can imagine, were passed directly to consumers and left to American families and businesses because they could.” – furniture, appliances, clothing, anything and everything across the Pacific on a ship from Asia – saw a price tag shoot up and families and businesses felt the pressure here at home.”
The new law aims to improve oversight of maritime shipping and makes changes that supporters say will ease inflation and reduce export arrears. The White House said the law will help reduce costs for American retailers, farmers and consumers.
A Thursday White House ceremony to sign the bill into law came amid a slew of new economic concerns facing the nation.
At the consumer level, supply issues persist in terms of consumer access to key products such as infant formula and tampons.
The national average cost of a gallon of regular gasoline reached $5 for the first time ever. Last Friday’s CPI showed inflation rising faster than expected, adding to concerns that prompted the Federal Reserve to implement its biggest rate hike in 22 years. Mortgage rates rose more than half a percentage point on Thursday — the biggest one-week rise since 1987. And ahead of this week’s rate hike, the S&P 500 on Tuesday erased all of its gains since Biden’s inauguration earlier last year.
At Thursday’s ceremony, Biden reiterated that tackling inflation remains his “top priority” and said he believes the legislation will bring inflation “at least marginally” down.
And despite comments from his staff and advisers in recent weeks dismissing inflation concerns by suggesting that high inflation or gas prices are worse elsewhere in the world, the President noted: “It is no consolation that inflation is higher in the rest of the world and gas prices are higher all over the world. Doesn’t matter. It’s way too high here.”
Still, by and large, Biden and the White House have blamed the state of the economy on factors beyond their control, such as oil giants making big profits and the Covid-19 pandemic and Russian President Vladimir Putin’s war in Ukraine and its impact on everything from the global oil supply to fertilizers to crops.
During his State of the Union address in March, the President criticized the “exploitation” of shipping companies by passing high prices on to consumers. And ahead of the signing ceremony, a White House official discussed how rising ocean shipping costs “are a major factor in the increased costs for American families.”
“During the pandemic, shipping companies increased their prices by up to 1,000%. And all too often, these shipping companies refuse to bring American exports back to Asia, leaving instead with empty containers. It’s costing farmers and ranchers – and our economy – a lot of money,” the official added.
The CNN Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia company. All rights reserved.
https://whdh.com/news/biden-criticizes-foreign-owned-shipping-companies-for-helping-to-drive-inflation-as-he-signs-new-law/ Biden slams ‘foreign-owned’ shipping companies for helping fuel inflation as he signs new law – Boston News, Weather, Sports