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.

View of the Port of Long Beach.
27 Mar 2013
LONG BEACH, Calif. — Now that the U.S. has emerged from the economic recession, the freight transportation sector in 2013 will shift its focus to supply chain issues such as federal sequestration, truck capacity shortages and a shift in sourcing away from China, economists told the annual Pulse of the Ports conference in Long Beach Wednesday.
Customs at the southern border
26 Mar 2013
Washington appears to be finally waking up to the growing need to speed up the movement of goods across the U.S.-Mexico border.
22 Mar 2013
Whether recent legislation that funds the federal government for the next six months will prevent slated furloughs at Customs and Border Protection that could snarl freight traffic at U.S. ports of entry is unclear.
22 Mar 2013
The Pacific Merchant Shipping Association and International Longshore and Warehouse Union have sent a joint letter to U.S. Sens. Diane Feinstein, D-Calif., Barbara Boxer, D-Calif., and other officials...
Container inspection at port by Customs official
19 Mar 2013
The federal sequestration could cut Customs and Border Protection’s manpower to the equivalent of about 5,000 agents over the the coming months, a former chief of the staff of the agency said Monday.


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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