Jul. 15, 2022
Resource: HKSG GROUP
Affected by the California AB5 bill, truck drivers in the three major ports in the western United States - Los Angeles, Long Beach and Oakland have been on strike one after another!
To make matters worse, labor negotiations for the nation's freight railroads are also facing a deadline, and if the government refuses to intervene, the railroads and unions will choose to shut down or go on strike next Monday.
This will increase the container backlog at the Port of Long Beach, Los Angeles, and will further increase congestion at U.S. ports, with a "catastrophic" impact on the weakening U.S. economy.
01 Truck drivers at three major western US ports start strike
The Port of Los Angeles/Long Beach will go on strike from July 13, US time, and the Port of Oakland will go on strike from the 18th, US time.
About 100 truck drivers at the ports of Los Angeles and Long Beach have stopped working to protest California's controversial legislation, AB5, according to an update at 4 p.m. U.S. time Wednesday.
In late June, the U.S. Supreme Court declined to hear the California Trucking Association’s lawsuit against AB5, sending the case back to the U.S. Ninth Circuit Court of Appeals.
An owner and operator planning to take part in a port strike said he did not want to be an employee driver, preferring to remain an independent contractor.
Gordon Reimer, manager of Southern California-based FHE Express, said the company uses 75 owners and operators to move cargo between ports in Southern California, many of whom plan to participate in Wednesday's strike.
He has informed the trucking company's customers that the strike could cause delays in shipments.
It is unclear how many independent contractors or owner-operators plan to participate in the strike.
In addition, during the strike period, some gates of the Long Beach Container Terminal will be temporarily closed!
A few days ago, Long Beach Container Terminal (LBCT) released the latest announcement through its official website:
On July 14th (Thursday) and July 17th (Sunday), part of the pier gate will be closed!
It is expected that the closure of the gate of the container terminal will have an impact on the container pick-up and return operations!
02 The Port of Oakland will strike on the 18th US time
Meanwhile in the north, a number of trucking companies carrying containers in and out of the Port of Auckland revealed they had been notified by owner-operators that they planned to strike next Monday (July 18).
Bill Aboudi, president of AB Trucking, said it shifted to a hire-based business model a few years ago, but as the impact of AB5 became apparent, many trucking companies serving California ports are closing, selling or moving operations out of California.
Some older owner-operators are being forced to leave the industry. Some young independent operators are either looking for another career or leaving California entirely to drive trucks elsewhere.
"We think inflation is high right now; if we don't get rid of AB5, just wait for the cost of running the trucking business to skyrocket," said Bill Aboudi.
03 American railroad workers will also go on strike
In addition to the strike, U.S. President Joe Biden faces a deadline next week to intervene in national railroad labor talks involving 115,000 railroad workers or trigger a strike or shutdown.
This could threaten an already fragile economy and disrupt food and fuel supplies.
That's a big deal for Biden, who wants to address inflation-fueling supply chain issues and has struggled to reach a deal in key labor talks at West Coast seaports despite a strike at three major western U.S. ports.
If the president refuses to appoint the Presidential Emergency Board (PEB) to intervene in railroad labor negotiations by 12:01 ET Monday, the railroad and the union can choose to shut down or strike, respectively.
In a letter to Biden, U.S. business groups representing retailers, food and fuel producers warned that failing to appoint a PEB would have a "catastrophic" impact on the weakened economy.
From Amazon's parcels to the rail transport of everything from fuel oil and soybeans, any kind of shutdown could push up the price of essential goods and upend damaged supply chains.
Amtrak has assured investors that it is negotiating with unions over pay, furlough and health care cost-sharing and making progress on hiring and retention.
"It remains in the best interests of all parties and the public to resolve this dispute, provide timely pay increases for all railroad employees, and prevent disruption to rail service," the National Railroad Labor Conference (NRLC) said in the latest negotiations.
