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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.

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.

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.

Apr 11, 2019 / by Jerry Critchfield posted in Southern California Ports, West Coast Distribution, Port Logistics, Third Party Logistics, 3PL, Transportation Strategies, 3PL Outsourcing, Labor issues, Regional Logistics, Logistics Compliance, logistics in California

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Carriers are having a rough go of it as of late. The truck driver shortage has left them scrambling to find new drivers to fill seats vacated by those retiring, leaving the industry, or switching jobs. There just aren’t enough new drivers to fill the void.

In most parts of the country, carriers can augment their company driver force with independent truck drivers (“owner-operators”) to fill in service gaps. When it comes to logistics in California, however, this has become difficult due to regulations and landmark court decisions that alter the way drivers are classified in the state. In this article, we’ll examine some of these and explain why the ramifications ultimately affect shippers just as much as carriers.

Feb 21, 2019 / by Jerry Critchfield posted in Southern California Ports, West Coast Distribution, Port Logistics, Third Party Logistics, west coast warehouses, Transload, Inland Empire Warehouse, overweight

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Shipping containers across the ocean to the Ports of Los Angeles and Long Beach is a big job with a big impact on your company’s supply chain. It can also come with a big price tag, especially when you’re dealing with overweight containers. This price tag can be greatly reduced, however, by partnering with a third-party logistics provider (3PL) that specializes in overweight container logistics.

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.

With logistics 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.

Nov 29, 2018 / by Weber Logistics posted in Southern California Ports, West Coast Distribution, Third Party Logistics, 3PL, west coast warehouses, 3PL Outsourcing, eCommerce Fulfillment, Pick and Pack, Multi Channel Fulfillment

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Growing from 100 orders per month to 15,000 per month. For most companies, that’s a dream come true. But if you have the wrong solution in place for eCommerce order fulfillment, that’s a dream that may never materialize. Here at Weber, this type of quick growth spurt can, and has, happened with eCommerce order fulfillment clients. The only way to handle it is to have an operation that can seamlessly scale to meet the uptick in demand.

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.

Oct 25, 2018 / by Weber Logistics posted in Southern California Ports, West Coast Distribution, San Diego Warehouse, Inland Empire Warehouse, Regional Logistics, Northern California 3PL, Distribution Center, Warehouse

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California. A very big state with a very big population. In fact, it’s the largest consumer market in the U.S. and thus a very sensible place to have a distribution center. Making California even more sensible, from a distribution perspective, is the fact that most of the Pan-Pacific freight arrives via its ports. For many companies, these combined facts make logistics strategy simple: place a DC in California close to the arriving port and the West Coast distribution riddle is solved.

Looking a bit closer, however, we can see that West Coast distribution isn’t a one-size-fits-all solution. In this article, we’ll take a closer look at choosing the right California warehouse space for your company and the impact it has on your port-to-market speed.

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.

West Coast and California Logistics Blog

What shippers should know about driver misclassification by California drayage carriers

Why Experience Matters for Drayage Drivers

Update on the Southern California Logistics Services Market

Why Carriers are Stepping Away from Independent Truck Drivers in CA – and Why Shippers Should Care

Overweight Container Logistics at the Ports of L.A. and Long Beach

4 Ways to Move Drayage Freight Despite the Driver Shortage

The Importance of Scalability in ECommerce Order Fulfillment

California SB 1402: What You Need to Know

Finding the Optimal California Warehouse Space for Your Products

How to Reduce Your Chassis Rental Fee

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