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IPFS News Link • Supply Chain Disruption

Here's Why The Logjam at California Ports

• theconservativetreehouse.com

The trucking issue with California LA ports, ie the Port of Los Angeles (POLA) and the Port of Long Beach (POLB), is that all semi tractors have to be current with new California emissions standards.  As a consequence, that mean trucks cannot be older than 3 years if they are to pick up or deliver containers at those ports.  This issue wipes out approximately half of the fleet trucks used to move containers in/out of the port.  Operating the port 24/7 will not cure the issue, because all it does is pile up more containers that sit idle as they await a limited number of trucks to pick them up.  THIS is the central issue.

In effect, what this 2020 determination and settlement created was an inability of half the nation's truckers from picking up anything from the Port of LA or Port of Long Beach.  Virtually all private owner operator trucks and half of the fleet trucks that are used for moving containers across the nation were shut out.

In an effort to offset the problem, transportation companies started using compliant trucks (low emission) to take the products to the California state line, where they could be transferred to non-compliant trucks who cannot enter California.   However, the scale of the problem creates an immediate bottleneck that builds over time.  It doesn't matter if the ports start working 24/7, they are only going to end up with even more containers waiting on a limited amount of available trucks.

Ships from China and SE Asia being diverted from California into the Gulf of Mexico or East coast have to go through the Panama Canal.  It takes twice as long and costs twice as much, if not more.  Hence, massive shipping price increases:

The bottleneck at the Ports of Los Angeles and Long Beach run by Gene Seroka and Mario Cordero is not caused by a lack of longshoremen and dock workers to off-load the vessels.  The bottleneck is caused by half of the previous trucks used to enter the ports and pick up containers not being allowed.  Factually, it doesn't make a tinkers damn worth of difference if the port works 24/7/365.   The ports are simply running out of space.

If you want to know how long this has been taking place, take the time to watch this video of a trans-continental shipment belonging to Amazon Inc from China.  As you watch this really good discussion, think about how long Amazon Inc. has known about the problem in order for them to have put such a massive solution into place in order to avoid California.

Yeah, this California emissions issue has been identified for years, and Amazon has been planning to avoid it for years.  WATCH:


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