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.

TPM 2013 was held in Long Beach, California.
08 Mar 2013
The Twitter feed from TPM 2013 was on fire through the three-day conference. Here are just some of our favorites.
06 Mar 2013
Supply chains will soon feel the federal budget sequestration’s impact on Customs and Border Protection, a trade attorney warned the JOC’s 13th annual TPM Conference.
03 Mar 2013
U.S. importers face severe delays in getting their cargo cleared at major seaports and at the Canadian and Mexican borders because federal sequestration will reduce Customs and Border Protection manpower.
27 Feb 2013
The U.S.-flag maritime industry fears foreign food aid in the form of grain shipments could be reduced or scrapped entire
19 Feb 2013
The nation’s fiscal tightening threatens not only freight-related transportation programs but also general commerce, particularly shippers and carriers involved in military contracting.


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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