RTW

Week 29 Market Update

CLOGGED WAREHOUSES AND RAIL DELAYS SIGNAL NEW SUPPLY CHAIN WOES

Action Needs To Be Taken Now To Avoid Further Disruption Not Just In Southern California, But Across The Country As Peak Season Kicks Off. “Cargo Owners Must Pick Up Their Boxes At Inland Rail Terminals Faster Than They Are Today. The Western Railroads Need To Provide Crews, Engine Power And Rail Cars Faster Back To The West Coast. Marine Terminals, Shipping Lines And The Ports Need To Provide Key Data To Prioritize Evacuation Of This Cargo Quicker. The Bottom Line, Action On This Issue Immediately Needs To Be Taken To Avoid A Nationwide Logjam.

PORT OF OAKLAND TRUCKER PROTESTS SET FOR THIS WEEK OVER STATE BILL

A new state bill affecting independent truck drivers has sparked protests set for this week at the Port of Oakland and authorities are anticipating traffic congestion and urging the public to stay away from the area. The protest comes as port workers and the trucking industry nationwide continue to face pandemic-related supply chain issues. Protests are planned to start Monday at 6 a.m. lasting through Wednesday at 4 p.m. The action centres around opposition to AB5, a state bill that has been held up in legal fights over the last two years but is set to be implemented as soon as this week after legal efforts to block it failed. AB5, authored by former Assembly member Lorena Gonzalez, requires trucking companies to treat their independent contractors as employees and provide benefits. Those opposed to the law say that it will cause remaining independent truckers to pay tens of thousands of dollars in extra insurance and license costs.

Supporters of the bill say it will provide truckers with better working conditions. The Oakland action comes as truckers at ports in Long Beach and Los Angeles protested on July 13 in response to the law.

BIDEN SIGNS EXECUTIVE ORDER ON RAIL LABOR DISPUTE

President Joe Biden on Friday signed an executive order creating an emergency board to help resolve disputes between major freight rail carriers and their unions, in a move that could help loosen up some supply chain constraints. The order came ahead of a deadline this week to intervene in nationwide U.S. railroad labor talks covering 115,000 workers, or open the door to a potential strike or lockout that could threaten an already-fragile economy and choke supplies of food and fuel.If the president had not created the Presidential Emergency Board (PEB) before 12:01 a.m. EDT on Monday,

the railroads and unions could have opted for operational shutdowns or strikes, respectively. The order becomes effective Monday.

RAIL CONGESTION THREATENS NATIONWIDE LOGJAM

The Board “Will Provide A Structure For Workers And Management To Resolve Their Disagreements. The Board Will Investigate The Dispute And, Within 30 Days Of Its Establishment, Deliver A Report Recommending How The Dispute Should Be Resolved,” The White House Said. Talks Between Major Freight Railroads, Including Union Pacific Unp. Nand Berkshire Hathaway-Owned Bnsf, And Unions Representing Their Workers Have Dragged Out More Than Two Years. The Order Triggers A “Cooling Off” Period So The Two Sides Can Work Toward Settlement. “We Look Forward To The

Forthcoming Recommendations Of The Presidentially Appointed Arbitrators,” Said Greg Regan, President Of The Afl-Cio Transportation Trades Department That Represents Several Railroad Unions. U.S. Business Groups Representing Retailers As Well As Food And Fuel Producers In Letters To Biden Warned That Failing To Appoint A Peb Would Be

“Disastrous” For The Softening Economy. Railroads Move Everything From Amazon Packages To Fuel Oil And Soybeans, And A Shutdown Of Any Kind Could Send Prices For Necessities Higher And Upend Battered Supply Chains.

WEST COAST LABOR TALKS DRIVE TRANS-PACIFIC SHARE GAINS AT EAST, GULF COAST PORTS

East And Gulf Coast Ports In The First Six Months Of 2022 Continued To Benefit From Cargo Diversions As National Retailers Sought To Mitigate Risk With The West Coast Labor Contract Expiring On July 1.

CALIFORNIA CONGRESSMEMBERS CALL ON GOV. NEWSOM TO REPEAL AB 5 FOR TRUCKING

California Congress members call on Government

Calif. Congressmembers urge Newsom to repeal AB 5

Rep. Michelle Steel (R-California) led 10 members of the California Congressional Delegation in sending a letter last week to California Gov. Gavin Newsom urging him to take immediate action to prevent AB 5 from “devastating the California

trucking industry and further crippling nationwide supply chains. ”The lawmakers noted the recent Supreme Court denial of a rehearing of the California Trucking Association’s case against the AB 5 law’s application to trucking, noting that “leaves a reported 70,000 independent truckers with serious doubts about whether they can continue to operate inside our state. This creates a legal mess made by the state of California. AB 5 continues to restrict the ability of Californians

to work as independent contractors. ”The group added that AB 5 will have a negative effect on the supply chain and will

lead to many independent contractors leaving the state. “Without enough truckers, cargo will continue to sit at the

ports waiting to be delivered,” the group said. “We must allow for truckers in California to work as independent

contractors.” The lawmakers sent the letter after the U.S. Supreme Court declined to take up the California Trucking Association’s case against the law. The law’s application to trucking had been stayed pending appeal, but will now go into effect, potentially shrinking the number of owner-operators, further worsening the backlogs at the ports of Los Angeles and Long Beach, and exacerbating the supply chain crisis, the group added.

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