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.

Audience at the opening session of TPM 2013 in Long Beach, Calif.
12 Mar 2013
There were many takeaways from this year's TPM Conference in Long Beach, Calif. Here is some of what we learned.
Agriculture imports at the Mexico border await Customs inspection
12 Mar 2013
The need for a new Customs commissioner will become agonizingly clear when the fallout from federal sequestration delays clearance of U.S. imports as early as this month.
11 Mar 2013
Import cargo volume at the U.S.’s major retail container ports is expected to rise 2.3 percent in March compared with the same month last year, despite federal spending cuts that could slow down cargo processing...
08 Mar 2013
The decision by U.S. Customs and Border Protection to cease overtime work for its personnel while Washington attempts to solve the sequestration issue will be a burden for all ports, but it could be disastrous for the ports of Los Angeles and Long Beach.
08 Mar 2013
The U.S. freight-related transportation industry and warehouse sector gained 3,100 jobs in February from January, but the most promising signs for increased freight transport came from sizable growth in the construction and manufacturing industries.


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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