Long Beach and LA ports handle about 40% of import volume, but they are hampered by California’s laws like:
- AB5 – requiring companies that hire independent contractors to reclassify them as employees. Assemblywoman Lorena Gonzalez, a Teamsters member, pushed AB5 to eliminate independents. Carriers are trying to get this reviewed by the Supreme Court – but many are complying or going out of business
- Building restrictions – warehouse vacancy is among the lowest in the country
- Pollution mitigation – for example, 3000 warehouses must mitigate diesel emissions
Let’s hope that current effort to petition the Governor has some impact!