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West Coast and California Logistics Blog

What shippers should know about driver misclassification by California drayage carriers

Aug 8, 2019 / by Jerry Critchfield posted in Southern California Ports, West Coast Distribution, Third Party Logistics, 3PL Outsourcing, Labor issues, Drayage, Regional Logistics, Northern California 3PL, logistics in California

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With the state supreme court’s Dynamex decision, followed by its Senate Bill 1402 (SB 1402), California’s position on the hiring of independent owner-operators by drayage carriers is now firmly established.  In short, the state asserts that many of these contractors are not independent after all – and those that claim to be acting as employees of the hiring companies have solid legal ground to sue for wages and benefits. 

Many beneficial cargo owners (BCOs) have seen the writing on the wall and are protecting themselves from possible legal and financial penalties by turning away from drayage carriers who engage contractors.  Others are not yet reacting, while still others may not even be aware of recent legal precedents.  In this article, we’ll get you up to speed on these developments and help you determine whether your prospective carrier’s drivers in California are actually considered to be on that carrier’s payroll or are sub-contractors.

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Why Experience Matters for Drayage Drivers

Jul 25, 2019 / by Jerry Critchfield posted in Southern California Ports, West Coast Distribution, Port Logistics, 3PL Outsourcing, Labor issues, Drayage, Distribution, logistics in California

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Drayage is technically just another transportation service.  A driver picks up a load and then delivers it.

With port drayage, however, this simple process becomes much more complex.  Navigating seaport terminals is a tricky business on a good day and can become extremely difficult as rules change from terminal-to-terminal, or even hour-to-hour.  To navigate the ports effectively – and avoid wasting time and money – shippers need to ensure the drayage carriers they work with have a roster of experienced drayage drivers. 

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Update on the Southern California Logistics Services Market

Jun 27, 2019 / by Bob Lilja posted in Southern California Ports, West Coast Distribution, Port Logistics, Third Party Logistics, Warehouse operations, eCommerce Fulfillment, Inland Empire Warehouse, Labor issues, Drayage, rail transportation, Peak Season Shipping, Distribution, logistics in California

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When it comes to Southern California logistics, there’s never a dull moment.  The region is home to the busiest ports in the country, while the state continues to dramatically alter the way logistics gets done through an array of unique regulations.  In this article, we’ll get you up to speed on some of the recent SoCal supply chain developments during the first half of 2019.

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4 Ways to Move Drayage Freight Despite the Driver Shortage

Jan 10, 2019 / by Jerry Critchfield posted in Southern California Ports, West Coast Distribution, Third Party Logistics, west coast warehouses, Transportation Strategies, Labor issues, Drayage, Distribution

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Stop me if you’ve heard this before: we’re in the midst of a truck driver shortage.  

While we may feel that we’ve reached the saturation point in hearing – and reading – about this shortage, the related headlines aren’t going away any time soon.  That’s because the shortage isn’t going away any time soon.  In fact, we can only expect to hear more about it as the impact to the trucking industry and the nation’s economy continues to worsen. 

Here in California, one of the major areas where this impact is being felt is container drayage.  The shortage of drayage drivers has recently returned to the headlines as there aren’t enough drivers to handle rising volumes in advance of tariffs and an interest rate hike.  In this article, we’ll take a closer look at this shortage and what you, as an importer, can do to keep your drayage freight moving to and from the ports. 

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California SB 1402: What You Need to Know

Nov 15, 2018 / by Weber Logistics posted in Southern California Ports, West Coast Distribution, Third Party Logistics, 3PL Outsourcing, Drayage, 3pl contracts

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Does your logistics operation source drayage services in California?  If so, read on as new legal developments in the state can put you on the hook for damages if the drayage provider you hire is misclassifying employees as independent owner/operators.

This latest shot across the bow in California’s labor battles comes in the form of California Senate Bill 1402 (SB 1402).  The Bill was signed by Governor Brown on September 22, 2018 and will take effect on January 1, 2019.  In this article, we’ll summarize the new Bill and explain what it means for shippers and other companies that hire port drayage companies in the state of California.

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How to Reduce Your Chassis Rental Fee

Oct 18, 2018 / by Jerry Critchfield posted in Southern California Ports, West Coast Distribution, Port Logistics, Third Party Logistics, 3PL, 3PL Outsourcing, Drayage, Peak Season Shipping, 3pl contracts

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When considering all the costs involved in getting your containerized goods from port to market, it’s easy to think of all the “big” things that drive up your spend.  These big-ticket items include your ocean carrier, drayage, and warehousing costs. 

As your container makes its way through your supply chain, however, there’s a smaller – but cumulatively significant – cost that is likely eating away at your margins: the chassis rental fee.  In this article, we’ll examine key ways to reduce this fee and improve the profitability of your operation.

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Select an Asset-Based Carrier for Drayage to Speed Distribution

Sep 27, 2018 / by Weber Logistics posted in 3PL Outsourcing, Drayage, Distribution, supply chain cycle time

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Many companies will choose to have their ocean carrier perform “port-to-door” drayage services.  While this approach may be convenient, it can also be detrimental to your port-to-market distribution speed as it’s easy to become a small fish in a big ocean carrier pond. When you turn to an asset-based carrier such as a 3PL provider for drayage, its assets are as good as yours.

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Weber Opens New Long Beach Drayage Facility

Aug 30, 2018 / by Weber Logistics posted in Southern California Ports, West Coast Distribution, Port Logistics, weber logistics news, Drayage

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Weber Logistics has opened a new port drayage facility in Long Beach, CA, less than 1 mile from the port.  Situated within the Overweight Corridor, this new facility will handle Los Angeles and Long Beach port drayage, as well as transloading, and weight reduction for overweight loads to make them compliant with California highway regulations. 

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FROM PORT TO MARKET: How to Speed Distribution of Asian Imports to West Coast Ports

Aug 23, 2018 / by Weber Logistics posted in Southern California Ports, West Coast Distribution, Port Logistics, Third Party Logistics, west coast warehouses, 3PL Outsourcing, Drayage, Northern California 3PL, Warehouse, supply chain cycle time

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There’s a new supply chain mantra in the post-Amazon era, and that mantra is SPEED.

Whether you are delivering to retailers or consumers, or both, customers want products faster in a more predictable time window.

If you import from Asia, your company has made a strategic decision to lengthen its supply chain to lower actual product costs. While you can’t control this decision, you can control how goods are transported and what happens once a container hits U.S. shores. It’s here that you can make a real difference to your company’s financial health by reducing supply chain cycle time and shrinking the cash cycle.

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Container Drayage Companies: Securing Reliable Capacity Despite the Driver Shortage

Jul 26, 2018 / by Jerry Critchfield posted in Port Logistics, Drayage

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As container volumes at West Coast ports continue to increase year after year, it’s becoming more difficult to move those containers inland.  The problem?  Container drayage companies simply don’t have enough drivers to meet demand.  And, when you are fortunate enough to secure dray capacity, you can expect to pay 10 to 15% more than you were just a few years ago. 

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