As a significant growing region, Los Angeles shippers and trucking companies share the challenges of producers in California to find enough workers. Both Americans and immigrants are rejecting agricultural work, preferring to go into more lucrative construction jobs or less physically demanding office work.
The acute shortage of drivers is affecting all aspects of the supply chain. The electronic logging device mandate and subsequent hours of service restrictions are at the top of the blame list, credited with delays and the capacity crunch. One day trips become two, or shippers must use teams, at a greater cost.
Another impediment to trucking companies is the California Air Resources Board and its stringent requirements. Though the Trump administration may begin rolling back some of the measures, for now, some truckers won’t come into the state because of the restrictions. There is a bit of good news, though, as the state has programs to help transportation companies acquire some of the needed technology to comply with CARB.
Whether you’re a grower, wholesaler, retailer, or anywhere in between, if you move product by truck, you’re uneasy. There are too few drivers and not enough trucks to meet demand—even in periods with fewer truckloads, let alone peak shipping windows.
“Shorter hours brought on by ELDs have made it difficult to secure trucks and drivers,” says Dana Thomas, president of Index Fresh, Inc., a shipper and importer of avocados in Riverside. “We have our own fleet, so there’s a continuous search for drivers. With the booming economy, product is being shipped all over. To service our customers, we’ve been doing more contracting on established routes.”
Sam Thakker, sales manager at Daaks International LLC, which is located just off the market points out, “The problem with perishables is that you either have to pay for a team or wait longer to get a load. Our centralized location right off the market is great for our big box store customers. We can be a one-stop shop. When you consider each stop costs $75 to $125, they can really save on freight.”
Maui Fresh International is handling the situation with a two-pronged approach. “Some of our drivers are employees and some are independent contractors,” says Francisco Clouthier, president. “Most drivers would rather work for themselves and that works out better for us. We will lend them money to purchase a rig. Shipping rates are up as a result of driver shortages and ELDs, so we try to split the increases between ourselves, vendors, and customers.”
Freight and container carrier Global West Transportation, Inc., based in Long Beach, also struggles to hire drivers. In its case, some of problem is due to the minimum age of 21 to obtain a commercial driver’s license, and because many potential drivers would rather be independent owner-operators.
This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full article.
