California trucking industry leader warns worker shortage, ship backlogs creating ‘perfect storm’

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Sean Yadan offers potential solutions to problems in the supply chain

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california Trucking Association CEO Sean Yadon argued Wednesday that the economic climate is presenting “the perfect storm right now,” with a record backlog of ships at ports in Los Angeles and Long Beach amid labor shortages and a supply chain crisis.

Speaking on “Mornings with Maria”, Yadon stressed that there are “actually problems throughout the chain that we are trying to address” and offered possible solutions, which he said appealed to all players in the supply chain. Synchronization is included.

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Yadon’s remarks came a week after President Biden called on private sector businesses to “step up” and aid his administration’s latest push to address the supply chain crisis, which has hit the streets during the crucial holiday shopping season. Empty shelves have been feared during this period.

Biden’s push coincides with the White House’s announcement that the ports of Los Angeles and Long Beach will move to 24/7 operations to clear the cargo backlog.

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Record backlog of ships at California ports amid supply chain crisis

Supply chain disruptions have hindered efforts to bolster the US economy during the COVID-19 pandemic. Key raw materials needed for manufacturing and components such as semiconductors are in short supply, while labor shortages have contributed to shipping deadlocks at major ports.

The number of ships waiting to enter California’s two busiest ports hit a record on Monday. A total of 157 ships are waiting at ports in Los Angeles and Long Beach, according to Marine Exchange data. As of Monday, 100 ships are at anchor and 57 are at berth as the US battles to find a solution to the situation.

Several major companies have noted high logistics-related costs and disruptions to their normal operations. The issues have also hit consumers in the form of empty shelves and high prices, raising fears that lower spending will slow the economic recovery.

One of the major issues with the supply chain has been a shortage of truck drivers. The American Trucking Association estimates that truck drivers carry more than 72.5% of all cargo transported in the United States.

American Trucking Association Allegedly Said it currently stands at around 80,000 drivers, which is a record.

Yadon attributed the reduction to an “aging driver population”, noting that “the pandemic certainly hasn’t helped” retain truckers.

Speaking with host Maria Bartiromo on Wednesday, Yadon said that “the trucking industry has historically faced driver shortages and it certainly is today.”

He then insisted that the problem had gotten worse in the past year and a half.

“We’ve certainly seen truckers leaving the industry, either temporarily or permanently, so that’s definitely an issue,” he told Bartiromo, “we’re all one way through the supply chain.” We are seeing worker shortage, so it is not limited to trucking.”

According to a 2019 report published by the American Trucking Association, the trucking industry had fewer than 60,800 drivers in 2018. The association speculated that the number could only keep on increasing.

Jamie Dimon says supply chain problems ‘won’t be a problem next year’

Yadon stressed on Wednesday that the solution to the supply chain crisis must come from “every stakeholder” in the chain, including trucks, ships, port terminal operators, workers at docks, warehouses and distribution centers.

“All of those players have to be really synchronized and we really have to step in optimization and efficiency to keep the flow going smoothly,” Yadon said.

He also said that regulatory relief is needed to defuse the situation.

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“I think we’re in a position in California where a state of emergency related to ports is definitely something that should be considered,” he argued, noting that his union “is a dozen in California.” Has joined with more other business organizations and associations. That kind of regulatory relief.”

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Granthshala Business’ Jiovanni Lieggi, Alicia Warren and Thomas Barrabi contributed to this report.


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