To stupidity…and, beyond!
How will the end of the trucking gig economy in California impact the local trucking markets and beyond?
Most likely, in a very negative way.
Also, I’m not entirely certain the sentiment that eventually it will improve the lives of truckers is correct. Look to the affected, or impacted, or, dare I say, screwed drivers to figure this out. They weren’t calling for any change. There was no class-action suit. There was a politician and the need to feel important. And, now there is no freedom of choice for your working environment.
The following SONAR charts are designed to help monitor the fluid situation as the freight market landscape conforms to the new law.
The chart above displays short-haul tender rejections in color and volumes in elevation. The impacts will come mainly in the local or city and short-haul markets from the ports. This should remain true at least in the beginning prior to impacting markets outside of California.
The gauge charts to the right are measuring the rejections and volumes of both short- and city/local lengths of haul to give a better breakdown.
Currently, there is not much that can be attributed to the AB5 ruling. We are still seeing the ripple effects of the end of the quarter/4th of July weekend.
The SONAR chart above is displaying wait times and tender lead times, as these will most likely be impacted as well. In particular, tender lead times will fluctuate as shippers have to push out pickup dates due to a lack of overflow capacity to handle any fluctuations in volumes.
Lastly, the following chart is measuring loaded domestic rail/intermodal containers.
I’ll be looking to see if there are impacts on rail and intermodal. The urgency of shipments has dwindled and the contract spread is still wide compared to intermodal rates. Will there be an increase in volume in the already overloaded rail system?
We shall boldly go where no one has gone before.
Peace and love