According to shipping industry analysts, it’s going to take at least a month to clear the backlog of cargo at the Port of Oakland. Nobody in California has any idea what’s next for independent truck drivers under the onerous AB5 gig worker law. Terminal operators are tearing their hair out.
Port of Oakland still congested
The protest over California’s AB5 law only impacted operations at the Port of Oakland for a week but the backlog of cargo is going to take at least a full month to clear away. Terminal operators “are now attempting to work through” the congestion snarl.
Assembly Bill 5 refuses to recognize independent truck drivers. They’re being forced to sign up as employees of trucking companies or quit the business. Guidance from the state amounts to “get with the program.”
On Wednesday, August 17, the Port of Oakland put out an update along with their July figures. The graphs show a “28 percent decline in total twenty-foot equivalent units moved in July compared to the year-ago period.” There’s a reason for that, they note.
“The port was closed nearly a week last month due to the trucker protests voicing concern over AB5.” According to maritime director Bryan Brandes, “this congestion reduced our overall July volume.”
Exports were affected more than imports in July. The Port of Oakland logged 26.7 percent less imports from a year ago and 30.8 percent fewer units of export.
“Lingering congestion from the protests, coupled with existing supply chain challenges, continue to impact operations. Recovery from the protest could take a month.”
Snarled by protests
There wasn’t a whole lot they could do, Oakland port officials shrug. The AB5 protests “snarled” its operations, “slowed loading and unloading of ships and created a back-up of containers stacked in yards.”
Not only that, the “disruption caused by the strike and supply chain issues are making it harder for exporters to coordinate shipping activities and get their goods out of the port.”
Another thing that Port of Oakland numbers reveal is that the price of shipping containers from Asia is falling through the floor, “which it said suggested a decline in import demand.”
The National Retail Federation doesn’t see much to be optimistic about in the report. They took it like a smack in the face. According to its Global Port Tracker report, the “impact” they’re going to feel “is likely to be seen through the rest of this year.”
Port of Oakland isn’t the only victim of the trucking issues. All the warehouses in the entire state are packed to the rafters. Trains don’t bother moving anything west of Arizona because there isn’t anywhere to put it.
Meanwhile, “some 70,000 owner-operator drivers in the state are impacted by the law.” They made it clear the moment the controversial Supreme Court decision denying relief came down, “gasoline has been poured on the fire that is our ongoing supply chain crisis.“
