While this article mentions the 3-7 day delay for traffic from Union Pacific railroad, it leaves out the BNSF—the nations’ largest cargo railroad system. They have had an almost complete embargo on shipments to California since the end of June. It will last till at least the end of September. That is a significant reason for grocery and retail stores having empty shelves.
“Apparently Governor Gavin Newsom doesn’t especially care about truckers very much. In addition to trying to pressure them into joining unions, his green new deal policies have raised pollution standards in California that go well beyond what has been mandated by the Federal government.
Such regulations have added to expenses for those providing transportation services. When the added costs of AB-5 are taken into account, Owner Operator Truck Drives are fearful they will be put out of business. This has already happened as many of those hauling containers to and from the ports have already thrown in the towel.”
Add AB 5 to the mix and you understand you are watching a train wreck, for the economy, in slow motion.
Continuous problems “Along the Waterfront” by Richard Eber
Richard Eber, Exclusive to the California Political News and Views, 8/4/22
Last week a notice went out to thousands of exporters and importers which read:
| NOTICE: Union Pacific Service Update Dear Business Partner, The Union Pacific Railroad ramps in Long Beach & Los Angeles, CA are experiencing 3-7+ days train departure delays due to high volumes and congestion. The UP has not advised when this will be resolved. We are monitoring this closely and will continue to provide updates as warranted. |
If the truth be known there are no permanent fixes to remedy this situation. There is little incentive for the two main railroads The UP and Burlington Northern to make major investments in California as they are currently maximizing their profits, In the future it is likely delays will increase slowing the supply chain for the entire country even more.
Much of the current state of oligopoly with the major rail operators on the West Coast is attributable to the merger of UP to the Southern Pacific back in 1996. While this move integrating their operations made sense cost wise, the end result created a virtual monopoly we are living with today
In another part of the galaxy in the port of Oakland, business was halted for a week by independent owner operator truckers who the State of California is attempting to put out of businesses. Under Assembly Bill AB-5 thousands of these individuals who move cargo in and out of port areas would be forced to trade their independence for benefits to be administered by a corporate power structure.
It is thought in Sacramento that such a move would increase fax revenues and encourage container haulers to join labor unions. Unlike Uber and Lyft who faced similar challenges by passing Proposition 22 in 2020. It maintained ride share employees as independent contractors.
Mom and Pop truckers lack the resources to pay lobbyists to do the same thing with the Legislature as ride share businesses. At this juncture drivers only way of fighting the State is by withholding their services to inform the public of their plight.
Apparently Governor Gavin Newsom doesn’t especially care about truckers very much. In addition to trying to pressure them into joining unions, his green new deal policies have raised pollution standards in California that go well beyond what has been mandated by the Federal government.
Such regulations have added to expenses for those providing transportation services. When the added costs of AB-5 are taken into account, Owner Operator Truck Drives are fearful they will be put out of business. This has already happened as many of those hauling containers to and from the ports have already thrown in the towel.
But wait there’s more. Currently the International Longshoreman’s and Warehouseman’s Union (ILWU) aren’t exactly breaking their backs speeding up operations prior to when their master contract expires next July. Work rules need to be changed especially dealing with handling Mega vessels to and from the Far East.
All of these problems are well known to the Federal Government. They are being discussed because of current supply chain problems being encountered throughout the entire country. Other than recently passed legislation reforming the Federal Maritime Association FMC) , little concrete action has been taken.
The Department of Transportation under Pete Buttigieg has been reluctant to take strong action improving the speed and cost goods move. Apparently the Secretary is too busy changing diapers and running for President to do the mundane tasks his office requires. What is needed to be done immediately?
- Federalize the piers in California with work rules applying to truckers and the equipment they operate. Gavin Newsom’s Green New Deal policies need to be modified for the benefit of California and the rest of the nation.
- Uncle Sam needs to assert themselves with the ILWU to speed up port operations.
- Railroad operators have to increase their volume or be broken up. They have plenty of capital to make necessary investments. Such an undertaking will require co-operation from the Federal Government including speeding up the permit process for facilitating expansion.
Unfortunately, it is doubtful if there is will in either Washington D.C, or Sacramento to make needed changes to improve efficiency in California port operations. Placating the environmental lobby is more important than promoting efficient transportation services. Especially among Democrats there is more concern with offending labor unions than solving problems.
To show how far government on all levels have fallen to deal with unions, the Taft-Hartley labor law was last used in California by President Bush in 2002 to put a dock strike on hold.
In contrast State public employee labor unions including teachers, police, fire fighters, and government workers, strike on a regular basis. How much the public might be inconvenienced is of little importance.
At least in the private sector, businesses have the option, as they often do, to move out of state as indicated by the exodus of jobs to Texas, Nevada, Arizona, and other locales.
This is all for naught as those who control California politics have nothing to fear so long as one Party has complete control over virtually everything that transpires in the Golden State. The transportation sector is merely another victim of Progressive government at its worse.
