President Biden addresses supply chain disruptions

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Specifically, Steenhoek addressed the serious problems faced by bulk shippers: “With the pressure to carry more cargo for a given capacity, the pressure has increased to bring shipping containers full of consumer goods or components from China to the United States and to unload and drop them off They return to China, where they will be reloaded for a new voyage. As a result, there is an increased willingness on the part of the shipping companies – the owners of the shipping containers – to deviate from this route in order to be loaded with agricultural or other products for export from the United States States. This lack of availability creates significant stress on US agricultural exporters who use containers. “

This shipping crisis started back in 2020 when the pandemic broke out and created a global mess in the supply chain, resulting in labor shortages and outbreaks that shut down warehouses or manufacturing facilities. When production went back online last year, it faced a surge in demand, Steenhoek said. “Production and the supply chain have been catching up since then. In addition, there is the normal increase in freight during the back-to-school season in summer and before the Christmas business. As nimble as the supply chain tries, it takes a long time to respond to such a surge in demand. Ocean-going ships are very expensive and take a long time to build. Ports have a limited number of cranes and storage facilities. Freight railways are very capital-intensive. ”

Steenhoek added, “Arguably the biggest challenge facing our supply chain in the United States is the labor shortage. Every means of transport struggles to meet its labor needs. Trucks, barges, rail freight and others compete with other industries for labor.

“The shortage of truck drivers has persisted for a number of years, but has been exacerbated by the pandemic. The truck driver, who needs a lot of time away from home, is not an attractive job for many employees.

In addition to all of the problems facing the trucking industry, the state of California added another one, Assembly Bill 5 (AB5). AB5 is an act signed by Gavin Newsom, the governor of California, and went into effect on January 1, 2020. AB5 affects independent contractors across California, radically changing the 30-year classification of workers, and re-classifying millions as workers. However, the California Trucking Association (CTA) was issued an injunction by the U.S. Southern District Court on January 20, 2020, preventing the state of California from enforcing AB5 against motor vehicles. The fight isn’t over yet and here is a link to updates regarding AB5: https://www.caltrux.org/…

I asked a representative from Boshart Trucking Inc., Tangent, Oregon if regulations like AB5 affected them. Since the company is based in the Pacific Northwest, I have been told that California law does not directly affect them and there are no prohibitions against owners / operators / independent contractors.

The company said in a post on its Facebook page about the current bottlenecks in the transportation supply chain: “BOSSCO Trading and Boshart Trucking have been in the drayage / export shipping business for over 15 years and these challenges are some of the greatest we have.” We heard from someone at Tyson Foods who has been in logistics for 45 years and this is the worst thing he has ever seen.

“Yes, there is a shortage of qualified truck drivers. The driver population is an aging population, with few new employees. Having more truck drivers would be of great help, but it’s not the only solution. “

Boshart Trucking added, “The regulations on issues like clean trucks and independent contractors only add more options to truck drivers and the extra cost is passed on to the customer. If marine terminals add extra hours, truckers will need them to be consistent in planning their weeks without exceeding the Federal Motor Carrier Safety Administration (FMCSA) hours, and they will need warehouses / distribution centers that are staffed and longer Have working hours to accommodate additional loads. “

Todd Spencer, President and CEO of the Owner-Operator Independent Drivers Association, responded to the supply chain crisis after the October 13 White House meeting: “Truckers have worked tirelessly to keep the country safe and productive during the COVID-19 pandemic are already on duty around the clock, but are often limited by factors beyond their control, such as detention periods that are too long and the lack of readily available, secure parking spaces for their trucks.

“These issues must finally be addressed if the administration hopes to implement significant supply chain solutions. Most of what we see is no surprise to our members, who have been plagued by supply chain disruptions for decades, and it is not realistic to expect the supply chain to suddenly function efficiently around the clock if the drivers are not complete get paid for their time. “

In recent months, global delivery bottlenecks have pushed some truckers off the road, noted Spencer. “Drivers experience the ripple effects of supply and personnel shortages that prevent them from complying with federal regulations. Examples include delays in drug and alcohol tests and difficulty finding replacements for electronic logging devices, DEF filters, and CPAP machines. We encourage the US Department of Transportation and other agencies to begin granting some emergency clearances to keep safe, skilled drivers in business. “

Spencer said, “But let’s be clear that the current supply chain crisis is not due to a shortage of truck drivers! Queues longer, not faster. Every region of our country and segment of our economy depends on truck drivers, and it is time that both the government and the trucking industry treat them as a vital workforce. We support the administration’s efforts to improve the quality. from trucking jobs, but this has to start with appreciating and compensating for all of the drivers’ time. “

“There are many cues, but this is not an easy situation to blame a party or resolve with a solution,” said Boshart Trucking. “There is no such thing as a panacea. The supply chain is not flexible, and we see that in full. Many are to blame and many must work together to successfully overcome these challenges.”

You can reach Mary Kennedy at [email protected]

Follow her on Twitter @MaryCKenn

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