IWLA calls pending California legislation a “job killer”

The bill under consideration in the state assembly, called AB 950 - Perez and Swanson, would mandate that only one form of labor – employee drivers – may transport truck shipments into and out of the ports of California.

By ·

Proposed legislation in California that would make that state’s ports less competitive with other Pacific Rim and Gulf ports is being opposed by The International Warehouse Logistics Association (IWLA).

The bill under consideration in the state assembly, called AB 950 - Perez and Swanson, would mandate that only one form of labor – employee drivers – may transport truck shipments into and out of the ports of California.

The legislation would ban self-employed small business owners from trucking containers into and out of the California ports.?Currently, the Port of Long Beach is using a “hybrid” model, which permits free market truckers to compete for drayage against organized drivers. In all cases, however, the port mandates that cleaner fuel burning vehicles be used.

The Port of Los Angeles, meanwhile, continues to campaign for employee drivers. The Port of Oakland, too, appears to be headed for a similar program pending the outcome of current litigation.

“Should California enact this legislation, it will have the only ports in the United States that mandate that truck owner-operators cannot participate in the movement of freight,” said IWLA president and CEO Joel D. Anderson.

“Much of California’s tax revenues and wealth creation come from international trade and commerce that streams through its ports. While the rest of the nation competes for these jobs, this bill would take the opposite approach by being openly hostile to new jobs and trade activity.”

Zepol Corporation, a leading trade data and market intelligence company specializing in ocean cargo data, said that freight is already flowing away from California ports due to expenses related to this and other “green” issues.

“Long Beach and Los Angeles lost a combined 4 percent and 14 percent, respectively last year,” said Zepol’s president, Paul Rasmussen. “East Coast ports are picking up this traffic. New York/New Jersey and Houston were the biggest winners on the container front in the past two years.”

For related articles click here.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at pburnson@peerlessmedia.com.

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Outsourced Transportation Management
All the benefits of owning a fleet without the headache of managing it.
Download Today!
From the August 2017 Logistics Management Magazine Issue
Which carriers, third-party logistics providers, and North American ports have crossed the service excellence finish line ahead of their competitors? Our readers have cast their votes, and now it’s time to introduce this year’s winners of the coveted Quest for Quality Awards.
BMW Takes the Inland Road to Efficiency
Global Logistics: No Shortcuts to Security
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...