Starting January 1st, 2023 California will implement a new rule “Truck and Bus Regulation” that could shrink the drayage fleet by up to a quarter according to the California Trucking Association (CTA). The new rule will ban truck models that are made in 2009 or older. Given the recent pass of AB5, which bans independent contractors, the addition of this rule will likely motivate some owner-operators to leave the state and when the state’s dray capacity takes a hit, cost to shippers will ultimately rise. At this moment the timing of this capacity crunch is uncertain, although starting next year shippers can expect that there will be pressure on the workforce.
At the port of Los Angeles, Long Beach, and Oakland drayage trucking is dominated by owner-operator drivers and is the sector expected to take the biggest hit, that being said many truckers are moving quickly to comply with AB5 to avoid driver and asset shortage. Matt Schrap, CEO of the Harbor Trucking Association stated “that the owner-operator model has been under attack for years by labor unions and the state of California. A number of harbor truckers have already established brokerage divisions, while others had been planning to do so but were waiting for the final legal determination before implementing their plans.” Although uncertain times lie ahead, you can stay informed with Noatum, where we consistently share updates to help you with your supply chain.
If you have any questions, please contact your local Noatum Logistics representative.