Freight operators in Oakland, Calif., prepare for continued protests by truckers who this week blocked operations at the West Coast’s third-busiest container port, adding new disruptions to already strained US supply chains. Is.
Truckers block vehicles from entering the Port of Oakland container terminals. effectively stopping all but one trickle of trade in protest of a California law that would tighten restrictions on the use of independent drivers.
Port officials said on Tuesday they hoped the protest would end on Wednesday, while officials from freight companies in the area said protesters were digging in and preparing to continue through the week.
“They have set up tents and are distributing food,” said Bill Aboudi, president of Oakland Port Services Corp., an Oakland-based trucking firm.
Dockworkers, who are members of the International Longshore and Warehouse Union, have also refused to cross picket lines to load and unload ships, according to terminal operator SSA Containers, adding to the virtual halt in freight traffic. Port officials said 11 container ships were waiting for berth space by the docks on Tuesday.
The port, a major import gateway and a hub for US agricultural exports, has struggled to handle the growth of container volumes during the COVID-19 pandemic. Before the pandemic it was unusual for ships to wait to berth in port.
Protests at the Port of Oakland gates mark the latest disruption to hit US ports since the impact of the pandemic’s trade flow in 2020, triggering major backups at Southern California ports as companies rush to restore inventory. and gateways struggle to handle the growing container volume. , Backup reduced at the ports of Los Angeles and Long Beach but bottlenecks Has hit ports including Oakland several times and recently Grown at the ports of the East Coast As the importers have sought alternative gateways.
The California law, known as AB5, is part of a wider regulatory battle across the US over independent-contractor arrangements in transportation companies, such as
Uber Technologies Inc.
and Lyft Inc. The International Brotherhood of Teamsters, which aims to organize drivers in California, says trucking companies misclassify drivers as independent contractors to deny them fair pay and benefits.
Many trucking companies employ their own drivers. But in California they also rely on an estimated 70,000 independent owner-operators carrying loads between the state’s ports and distribution centers. The law makes it difficult for trucking companies to classify drivers who regularly work for them as independent contractors.
Many drivers say the new law will force them to work as employee-drivers or they will have to pay more for insurance and permits to remain independent under the law’s guidelines.
California legislators passed the law in 2019 and it was due to take effect in 2020, but was delayed due to a legal challenge by the California Trucking Association. The US Supreme Court’s decision not to review the case on June 30 allows California to begin implementing the law in the coming months. The trucking association’s legal challenge continues in lower courts.
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