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.

Locked gates to business
30 Sep 2013
WASHINGTON — Shippers shouldn’t expect any delays in the clearance of cargo at ports of entry, nor will highway, road and bridge construction cease, if the federal government partially shuts down tomorrow because of a fight over President Obama’s health care law.
05 Sep 2013
The U.S. Merchant Marine could lose up to 15 vessels, dealing a blow to mariners who operate the vessels, if federal sequestration cuts take effect next year, according to a maritime trade union.
21 May 2013
Freight and infrastructure capacity will be at the top of the agenda at the National Industrial Transportation League’s Spring Policy Meetings in Chicago May 23 and 24.
09 May 2013
After handwringing, a major lobbying effort and consternation on the Hill, Congress passed $55 million in new funds to allow U.S. Department of Agriculture inspectors to stay on the job. And Southern California’s Port Hueneme got one of the rare budget reprieves that allowed the produce and auto port to continue normal operations.
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.


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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