California Drayage in Crisis: How Severely will AB5 and CARB Limit Capacity?
How dire is California’s drayage capacity situation? “Gasoline has been poured on the fire that is our ongoing supply chain crisis,” the California Trucking Association said when the US Supreme Court on June 30 declined to hear an appeal challenging AB5, clearing the way for full implementation of California’s “gig worker” law and its direct impact on 70,000 owner-operators serving the state’s ports. The ruling set in motion a wholesale restructuring of the drayage sector that is still playing out. If that wasn’t enough, California harbor truckers are warning of an almost 30 percent drop in truck capacity at the state’s container ports as of Jan. 1, when a state air quality mandate takes effect that allows only 2010-or-newer model-year trucks to serve marine terminals. The Harbor Trucking Association said about 28 percent of the approximately 20,000 trucks in the Los Angeles-Long Beach drayage truck registry will be older than the 2010 model year and thus disqualified from operating at the ports. This session will dive into where this situation is headed in 2023 and beyond.