California compounds supply chain problems

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!