Part 4/8:

Peter Z elaborates on the complexities of the current manufacturing landscape, wherein China plays a major role as the assembler of goods rather than as the primary manufacturer. This distinction is crucial as it outlines the interdependencies present in the supply chain. Many of the products typically sourced from China are assembled in the region and shipped in a finished state to major U.S. ports like Los Angeles, Houston, New York, and Savannah.

Without careful management, the new port fee structure could lead to an overflow of traffic at the largest ports while starving secondary ports of necessary cargo. In light of this, the decision to adopt a weight/volume fee structure over a flat rate was a necessary compromise to mitigate logistical complications.