Since the failure of labor negotiations between dockworkers in the western United States on July 1, industry insiders have speculated that workers will go on strike one day. Unexpectedly, less than half a month later, news of a wave of strikes came.
Yesterday, a freight forwarder issued a notice saying:
“The three major U.S. ports of Los Angeles, Long Beach and Oakland will start a strike on the afternoon of July 13The union will hold a meeting on Thursday, and the port gate will be closed for some time periods, so it is impossible to make reservations for container pick-up. The specific situation is still being followed up. The pick-up/return of containers arriving at the port will be affected to a certain extent in the near future. Please be informed! "
Another freight forwarder said,The reason for the workers' strike was the impact of California's AB5 bill.“The Los Angeles Towing Union went on strike on July 13 (Wednesday) US time. The Long Beach dock gate will be partially closed on July 14 (Thursday) and July 17 (Sunday)!This will have an impact on the operations of picking up and returning containers! "
At the same time, several transport containers are entering and leaving the north.Trucking companies at the Port of Oakland have received notice from owner-operators that they plan to stop operations on Monday, July 18.
On the surface, AB5 is a good thing because it can transform truck drivers from "temporary workers" with no security to employees with stable income. However, in reality, it makesTruck drivers have lost their freedom and can no longer take jobs from truck companies as independent partners. Their salaries and benefits are not as generous as advertised in the media.
One driver said:"I make $14 or $15 an hour driving for the big carriers. The guys flipping burgers make $15 an hour."
In addition, when trucking companies convert drivers into employees,This will lead to high payroll taxesEmployees and companies will bear part of the tax, and this tax may be one of the original intentions of the California government to enact the bill. For truck companies, generally speaking, the cost of hiring a worker is at least less than signing a contract with an "independent contractor" for the same work.Pay more for the employment costs of 30%.
As a result, workers began to realize that their dreams and rights were being taken away:
One owner-operator who plans to attend the port protest said he does not want to be an employee driver and would prefer to remain an independent contractor.
A California truck driver said:“We were so busy during the pandemic that we didn’t realize we were going to be screwed over AB 5.”
However, in response to the California Trucking Association's challenge to AB5, the U.S. Supreme Court refused to hear the case on June 28 and sent it back to the U.S. Court of Appeals for the Ninth Circuit for trial, which triggered the workers' strike in protest.
So what impact did the dock workers' strike have on the port?
According to the freight forwarder:Except for the regular terminal of Meisen, the container pickup is normal, while the container pickup at all other terminals will be slow.
1. PCT terminal no longer allows container pick-up (COSCO East China)
2. The container pick-up and release appointment at LBCT terminal has to wait until LFD or after LFD time, and it is already on strike (Yantian COSCO688 route)
3. APM Terminals is also passive and slow to release contracts (CPS routes in East China)
4. The official website of the overtime ship of Matson will show AVAILABLE, but the actual container cannot be picked up. Wait for the container to be dragged to the pick-up area, and the pick-up time is uncertain
In addition, a freight forwarder released todayReal-time news from the US:
"Today, only some drivers from the trailer association went on strike, which caused congestion at the terminal, seriously affecting the efficiency of container pickup and return. Therefore, many truck dealers did not arrange trucks to pick up and return containers today, fearing that they would be attacked by striking drivers. The operation of the terminal was still normal today, and only the affected shift at TTI terminal did not start."
According to forecasts from NRF and Hackett Associates,In July, the number of retail import containers in the United States will reach 2.31 million TEUs, an increase of 5.3% over last year, and port cargo volume will continue to remain high.In addition, the number of retail import containers in the United States in 2022 will also see a significant increase compared to 2021.
Foreign media also reported thatJuly of this year will be the fourth busiest month in history for U.S. ports, and port congestion will continue.
Because it is Amazon Prime Day recently, which is also the peak shipping season, sellers' shipments will be larger than usual. Coupled with the dock workers' strike, it is bound to cause port congestion and increased logistics delays. Therefore, cross-border sellers must make shipment preparations in advance to minimize cargo risks and losses.
Original source: https://mp.weixin.qq.com/s/Xv1gmRxNc8U8Com9G-nU2A
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