You are currently viewing Multiple factors are adding up to make freight transportation more difficult in California

Multiple factors are adding up to make freight transportation more difficult in California

Multiple factors are adding up to make freight transportation more difficult in California 

Risks like the Red Sea and Baltimore port disruptions and Panama Canal restrictions continue to drive shippers to divert more of their freight through West Coast ports. In fact, cargo volumes at the Port of Los Angeles rose 60% year-over-year in February. Increased imports plus the largest gross state product in the United States equal a lot of freight transportation in California. Shippers need to take note of regulations that could put the squeeze on capacity in that state.

California Assembly Bill 5 (AB 5) 

Now that final legal challenges to this bill’s applicability to trucking were rejected, we may see trucking companies — that historically relied on independent contractor drivers — start to try to hire employee drivers or exit the market altogether. These changes may lead to fewer professional drivers available to move freight in California. And the risk to shippers can be direct: California has a unique law under which shippers themselves can be directly held liable if their freight is hauled by third party trucking companies that misclassify drivers as owner operators.

California Air Resources Board (CARB) 

Two new CARB regulations – the Clean Truck Check Rule and the Advanced Clean Fleets Rule – are aimed at accelerating the transition to electric vehicles and will require considerable equipment investments for many carriers. Under the Clean Truck Check Rule, both in-state and out-of-state heavy-duty vehicles are required to have their emissions control systems routinely tested to ensure that they meet California’s strict emission standards. Heavy-duty vehicles operating in California will need to register with CARB by December 31, 2024 and, starting January 1, 2025, will have to undergo emissions testing twice per year.

The Advanced Clean Fleet Rule sets increasingly stringent emissions standards for heavy-duty vehicles and forces motor carriers to phase zero-emission vehicles into their fleets. A component of the Advanced Clean Fleets Rule relating to drayage trucks places significant restrictions on vehicles operating within California seaport and intermodal facilities. This drayage rule requires that all new vehicles added to California drayage must be zero-emission. CARB plans to enforce the Advanced Clean Fleets Rule once it receives an EPA waiver, and has indicated that the rule will likely take effect retroactively to January 1, 2024

Source: Schneider Online Article

April 25, 2024