Cargo Shortages Anticipated as Bessent Highlights Government Shutdown Effects

Government Shutdown's Economic Ramifications

Treasury Secretary Scott Bessent voiced concerns about potential cargo shortages in an interview on ABC News during the ongoing government shutdown. He emphasized that the situation is adversely affecting holiday shopping due to a marked reduction in air traffic, which is crucial not only for travelers but also for cargo shipments.

Worsening Economic Climate

Bessent stated, “We’ve seen an impact on the economy from day one, but it’s getting worse and worse.” He pointed out that estimates indicate economic growth for this quarter could be slashed by up to half if the shutdown persists.

Flights and Cargo Challenges

With the FAA implementing a 10% reduction in flight capacity across 40 high-traffic areas, both passenger and cargo services are suffering. Bessent lamented, “Cargo and people are both being slowed down here, for safety’s sake.” This could lead to shortages in the supply chain as we approach the busiest travel season of the year.