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Supply Chain mess, California self inflicted crisis #16541125 10/18/21
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So ships are piling up at Long Beach waiting to get unloaded. The port is jammed full of containers with no place to stack more. The liberal media is blaming it on the trucking industry while the nation's store shelves are becoming bare... Well there's more to the story. Could Gavin Newsom and California's liberal trucking laws be the blame ?


The NEWS says the California port situation is caused by a driver shortage.



Not so fast: It is in part caused by a California Truck Ban which says all trucks must be 2011 or newer and a law called AB 5 which prohibits Owner Operators.



Traditionally the ports have been served by Owner Operators (non union). California has now banned Owner Operators.



Long term, truckers in California are not investing in new trucks because California has a law that makes them illegal in 2035. The requirement is to purchase electric trucks which do not exist.



And in the words of Paul Harvey, “Now you know the rest of the story”



BUSINESS


CARB to begin blocking certain trucks’ DMV registrations in 2020



Carriers domiciled in California with trucks older than 2011 model, or using engines manufactured before 2010, will need to meet the Board’s new Truck and Bus Regulation beginning in 2020 or their
vehicles will be blocked from registration with the state’s DMV, the state has said.



The new “health-based requirements” will need to be met before a driver is allowed to register his or her truck through the Department of Motor Vehicles, CARB says. A new enforcement tool used by
the DMV beginning in 2020 will automatically block 2010 and older trucks from registration.



You can do your own research... this article explains the situation & will back this up this infomation.



https://ww2.arb.ca.gov/.../truckstop/azregs/dmvreg.html


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Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541156 10/18/21
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We don't have enough problems so Democrats are focused on creating new ones in order to convince morons to vote for them so they can fix the problem they created.


"Life is tough, even tougher if your stupid"
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Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541162 10/18/21
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Mayor Butt Fugk says it’s the sign of a strong economy.


For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.

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Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541164 10/18/21
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So once again

What are you short of, what do you think you’ll be shît outta luck needing in 3 months?

Christmas tinsel or Etonics orthopedic shoes? Mandarin oranges in the 8 ounce can, smoked Philippines oysters?


Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541241 10/18/21
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CA has no idea what they have done.

Complete fools, all.

MM

IC-A

Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541257 10/18/21
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There isn't anything coming through that port that shouldn't be made in the USA.

I hope that the democrats and unions make imports so expensive that manufacturers take notice and do the right thing for a change.


God Bless America
Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541508 10/18/21
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Not just the truckers....

https://news.yahoo.com/lazy-crane-operators-making-250-200100567.html

"LONG BEACH, California — Crane operators who belong to a powerful union and earn up to $250,000 a year transferring containers from ships to trucks are worsening the supply chain crisis that threatens Christmas by goofing off on the job, frustrated truckers told the Washington Examiner.

The finger-pointing at the busy Los Angeles County ports comes as scores of container ships are anchored off the California coast, waiting in some cases for weeks to unload their freight. The Biden administration has scrambled to get shipping executives, port officials, and labor to tackle the problem. While the reasons for the burgeoning backlog are complex, truck drivers say not everyone seems to be working together.

“In 15 years of doing this job, I’ve never seen them work slower,” said Antonio, who has spent hours waiting at Los Angeles County ports for cargo to be loaded. “The crane operators take their time, like three to four hours to get just one container. You can’t say anything to them, or they will just go [help] someone else.”


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Re: Supply Chain mess, California self inflicted crisis [Re: UncleAlps] #16541686 10/19/21
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Teal Offline
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Long term, truckers in California are not investing in new trucks because California has a law that makes them illegal in 2035.


Heavy duty diesel trucks illegal in CA starting in 2035 - there isn't a truck bought today that would be in operations 14 years from now by someone who can buy new. That's a red herring.

AB5 is a problem for sure but trucking wasn't the target of the law. Originally brought up to go after Uber/Lyft/DoorDash and other so called gig jobs. It currently has an injunction against it while the courts sort some things out. Much of the industry is hoping SCOTUS rules that F4A applies and CA can't make such a rule when it comes to this.

About 2% of all truck drivers are union. Majority of those reside in the LTL sector. LTL isn't the one servicing the ports. Union in trucking lost a ton of sway with deregulation - something Jimmy Carter signed into law - a Dem.

Jason Hilsenbeck has a great post on it -

Oct 15, 2021: Demand for drayage trucking has eased on all of the East Coast. Note taper downward for NY/NJ. See on Savannah the slight bump up earlier this month? That is from the vessels that were held up in NY/NJ finally making their way down the coast and arriving in Savannah. Now SAV is getting caught up. There are plenty of 1-2 driver draymen in CHS,SAV looking for work. Click on "PO" for power to see what I mean.

Even Chicago has eased. Not as many 20/40’s are moving inland like there were three months ago. There are draymen in Chicago posting today having power for next week (for 20/40' dray). Houston is still tight, big draymen are booked several days out, but it feels like by end of next week the small 1-2 driver will be looking for next day work again.

However Los Angeles/Long Beach has reached all-time high demand! The reason for this surge while rest of country is getting easier, is LA/LB is the fastest ocean transit time to get cargo into the U.S. from China. So two months ago if you are an importer trying to decide how to route cargo to make it in time holiday shopping, you know routing time to East coast isn't going to make no matter what, but routing to LA/LB you might have a chance, and if doesn't make it in time, you have the most warehouse capacity with inland OTR/IMDL for flexible distribution for the January post-holiday sales season.

LA/LB ports open 24/7? Doesn't matter if ports are open round the clock, what matters is how fast the port labor turn the drivers. It would be more effective for the terminal labor to not shut down for lunch and shift changes, and continue to process drivers as fast as possible throughout the normal hours. Imagine how much faster the drayage drivers would get processed if the terminal operator had to pay for the cost of the dray.

I remember years ago at conferences "bigger vessels, will terminals be able to handle increased volume?" and clearly the answer is 'no'. There simply is not enough space at the port and rail terminals. Terminals being open 24 hours doesn't mean there are lift operators or mechanics working in middle of the night. And if terminals are so full they stop accepting empty/loaded ingates, those are the much needed chassis they aren’t getting back.

Terminals aren’t expanded and driver processing is slow because storing containers inside the terminal generates profit. The railroads for the month of August made $12.4 million off charging storage penalties, just for Chicago.


Jason Miller is another bright guy - the "shortage" is compared to historically high volumes. The saying "don't build your church pews for Christmas and Easter - build for the average Sunday" applies.

There has been so much attention given to the number of containerships waiting to dock at US ports that it becomes easy to lose perspective about the current state of international supply chains. It is critical to keep in mind that the number of imports flowing into the USA is at levels unprecedented in recent times. As proof, below I’ve plotted the metric tons of waterborne containerized imports into the USA for all countries excluding Canada and Mexico. Data courtesy of the U.S. Census Bureau's USA Trade Online database. Thoughts:

•For the first 8 months of 2021, metric tonnage is up a staggering 16.9% from 2019 levels.

•Using imported TEU data for 2020 from the Port of Los Angeles (https://lnkd.in/eq6gBiYe), the average container into that port is loaded with 7.67 metric tons of imports. I'll assume this is representative nationally.

•Using this metric ton/container estimate, the USA has been importing an extra 319,000 containers per month in 2021 relative to 2019. That is a substantial amount of additional freight that must be handled, which backs up warehouses around the ports.

Implication: I think the discussion increasingly needs to turn to recognizing that the import system has shown quite a bit of resilience given record demand. Yes, it is taking longer to get product into the USA, but it is still coming in, and at record levels.


Can talk all you want about "American goods wouldn't be sitting on boats in port to be unloaded" - it's pandering. The volume is through the roof. Regardless of AB5 - there's a shortage of trucks/drivers/rail capacity to move it all. American goods are sitting on the docks in Tulsa, Reno, Ames, Cleveland etc. There aren't enough trucks to move them and having them sit in a boat or on a dock because we don't have the capacity to move massive increases in volume - that's a distinction without difference.

Look - reality is, even with all this activity, the inventory to sales ratio is still above 1. There's product available for sale - it's just not where the supply chain wants it. DC/FC staging is behind due to INLAND transportation issues. Pay attention to the Y axis - only moves 1.2-1.8



Fred I/S ratio


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Re: Supply Chain mess, California self inflicted crisis [Re: MontanaMan] #16541944 10/19/21
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Originally Posted by MontanaMan
CA has no idea what they have done.
I hope you're right, but my bet is - you're wrong.. I think they know EXACTLY what they're (gov't) is doing..
Quote



Complete fools, all.

MM
Fools - yeah, but SOCIALISTS - OH YEAH...


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Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541954 10/19/21
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Com on Man ! Bidenomics is working just like they planned. The shortages make every one forget about how much the price increased( inflation for the Liberals & Democrats). $5/gallon gas will be praised once you start waiting in line on odd/even days.

IC-B

Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541958 10/19/21
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You think thats bad.


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A liter!

Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16541964 10/19/21
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Well California DemocRats aren't screw every one.... all their laws, that they apply to make life easy for the party supporting unions, and hurt those who aren't union...

Those laws don't apply to illegal Mexican and Mexico based trucks... same thing with all the trucking Companies in BC, that are ran by Indians, Sikhs and Pakis..

can't speak for the ones in Canada, but I'd bet plenty of the Mexican truck stuff isn't even insured....

and none of these damn foreigners drive worth a schidt or have any concept of courtesy on the road...

hell at times I see them here on I 5, going up a hill at 20 mph in the left lane, passing another truck doing 19 in the right lane...
then come down the other side of the hill doing 80 to 90 mph, and hanging in the middle of the road, especially coming into the curves...

I maintain out this way... ALL DemocRats need to thrown out of office.... by way of the 5th floor window....head first.


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Re: Supply Chain mess, California self inflicted crisis [Re: shawlerbrook] #16541965 10/19/21
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Originally Posted by shawlerbrook
Com on Man ! Bidenomics is working just like they planned. The shortages make every one forget about how much the price increased( inflation for the Liberals & Democrats). $5/gallon gas will be praised once you start waiting in line on odd/even days.


sure makes me want to buy some bad artwork by a crackhead sodomite.


-OMotS



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Re: Supply Chain mess, California self inflicted crisis [Re: Seafire] #16541994 10/19/21
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Teal, thanks for posting.



Originally Posted by Seafire


Those laws don't apply to illegal Mexican and Mexico based trucks... same thing with all the trucking Companies in BC, that are ran by Indians, Sikhs and Pakis..


For all effects and purposes, there are NO “Mexico based trucks” that operate more than a couple of miles from the Mexican border. Any Mexican based truck that operates in the US will be double plated and have full USDOT credentials (and is an inspection magnet at any scale or inspection station they come across).


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Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16542052 10/19/21
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Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16542071 10/19/21
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Teal Offline
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Fun fact - American made goods are stuck in American warehouses and on American docks right now.

What's the difference if they're stuck on a boat or on the dock?

And it's less a shortage of drivers/warehouses and an inelaasticity in the labor pool.

Stacking warehouses in the Indland Empire has a "shortage" of warehouse workers - yes and no. Short for the super high volume but not short for normal.

You can not just create 15,000 warehouse workers and 20mm sq ft of storage like hitting a light switch.

Running as fast as the "machine" can go with resources available - it's basically 20lbs of crap in a 5lb bag right now and a 5 lb bag is all that's available.


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Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16542084 10/19/21
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Blah blah blah. I'm just taking a couple of days off. You get your chit when you get your chit. grin


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Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16542088 10/19/21
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Teal Offline
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2002 - 2020, warehousing employment in So Cal went up 1583%. Not a typo.

2012 - 20, up 380% or 80,200 workers.

2019 to 2020 it went up 30% or 23k employees in 1 year.

That's annual average, not counting seasonal bumps.

The problem in SoCal is warehousing is too congested. To find new, available workers you need to get outside the area and no one's gonna commute 3-4 hours a day for a warehouse job.

Shippers and warehouses need to bite the bullet and either move farther inland for storage (with higher transport costs) or start using Houston, Savannah, Portland, Oakland etc but that has high cost as well and it would take years for inland transportation networks to shift and adjust to new OD pairs and pricing.


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Re: Supply Chain mess, California self inflicted crisis [Re: rockinbbar] #16542090 10/19/21
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Originally Posted by rockinbbar
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We need more American made of everything!

Re: Supply Chain mess, California self inflicted crisis [Re: OSU_Sig] #16542099 10/19/21
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The core of the problem is that the politicians shut down the entire service sector of this economy. People could not spend money on eating out, concerts, movies, theaters, cruises, day trips, or even dentists, doctors and hospitals. Over 30% of people’s normal spending just disappeared. Boatloads of money in everyone’s pockets, burning holes.

Then, the politicians (Trump included, thank you very much) decided to “help” with that and turned on the printing presses at full speed. Even MORE money in everyone’s pocket burning holes.

So, people bought stuff. All kinds of stuff. Some logical, like home office furniture. And ammo. Some out of boredom, like buying a bigger house ‘cause momma is tuck at home now and tired of the old one. Most borne out of short term thinking, like puppies.

But it was all stuff. And there’s only so much stuff to go around, and only so much capacity to get more stuff. Only so many trains and trucks to move stuff.

From what I hear on the ground, AB5 still made the problem worse, but the real problem was/is the government shut down of the service sector.


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