The $85 billion worth of U.S. government budget cuts as part of the federal sequestration will hamper agencies key to processing cargo and building the infrastructure freight traffic depends on. In a larger sense, the cuts will likely dampen business and consumer demand, reducing the amount of freight that needs to be hauled by trains, trucks, vessels and airplanes.

The federal cuts, which took effect March 1, are just the first wave of the $1.2 trillion worth of spending reductions set to take place over the next 10 years. The remaining budget reductions will kick in unless Congress and the Obama administration solve the federal deficit crisis.

How sequestration will impact the U.S. economy and supply chains is fluid, so make sure to keep an eye on update and analysis via The Journal of Commerce.

26 Apr 2013
U.S. Congress has passed a bill that will halt air traffic controllers from being furloughed as part of budget cuts related to sequestration.
11 Apr 2013
RANCHO MIRAGE, Calif. — U.S. Customs and Border Protection has kept disruptions to a minimum at the Los Angeles and Long Beach seaports and Los Angeles International Airport by working with the trade community to prioritize allocation of resources during this period of sequestration, a top Customs official said yesterday.
09 Apr 2013
Import volume at the nation’s major retail container ports is predicted to rise 2.7 percent in April compared with the same month last year, as U.S. Customs and Border Protection officials brace for the impact of...
Customs inspectors checking cargo
04 Apr 2013
NEWPORT, R.I. — Customs and Border Protection hopes a stopgap spending bill will clear the way for the agency to shift enough funds to minimize the impact of furloughs and other budget cuts under the sequestration, a top Customs official said.
02 Apr 2013
U.S. Customs and Border Protection has halted plans for furloughs and suspended its ban on overtime, The San Diego Union-Tribune reports.


The negative impacts of sequestration on the international trade community are looming for California's public ports, and what happens there will ripple through the national economy in a matter of weeks unless Congress takes quick action.

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