29 September 2023Article
US Government Shutdown - Supply Chain Impact

As U.S. government faces potential shutdown due to budget disagreements, concerns arise over the impact on supply chain, prompting industry groups to prepare for potential disruptions.

As negotiations within the US Government regarding budgets and spending cuts continue, a possible shutdown of the government and public services looms should the agreement deadline of 1st October not be met. We have been closely monitoring the situation to assess its possible implications on the US Supply Chain.

A Government shutdown could lead to major disruptions across public services, with thousands of government employees put on furlough, including those of the Federal Aviation Administration (FAA) which is planning to put almost 17,000 employees on furlough. The effect on airport infrastructure and air traffic control could be significant with delays and flights cancellations expected.

In response to these concerns, the National Customs Brokers and Forwarders Association of America, along with 40 trade associations has called for regulatory agencies overseeing cross-border trade to maintain close and direct communication with industry representatives. Meanwhile, the U.S. Customs and Border Protection, which is not expected to shut down, has established a dedicated team to closely monitor imports and exports and promptly address any bottlenecks.

The industry groups are also seeking the collaboration and technical support of independent US government agencies such as FDA and EPA. These however are expected to be affected by the shutdown. If these agencies adhere to the shutdown, document requests will take significantly longer to process than usual, causing delays, possible additional examinations and storage charges.

At Woodland, we have a dedicated in-house licensed customs brokerage and compliance consultancy team and we will do all we can to minimize possible impact.

We will continue to monitor the situation. Should you have any questions regarding your global supply chain management, please reach out to your Woodland representative or our dedicated team here.

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