Recently, strikes by port workers and truck drivers have spread across almost all American ports. This will cause great obstacles to the operation of the port.

It is reported that the Oakland International Container Terminal in California announced that it would close the cargo business of Oakland port and suspend its operations.

Roberto Bernardo, the head of Auckland port, said: "due to the protest of truck drivers, the management of Oakland International Container Terminal (OICT) decided to close its operations. At present, only some ships are in operation."

Truck drivers participating in the Oakland port strike and protest said they were prepared to continue the blockade for several months if their concerns about AB5 were not resolved.

AB5 is an assembly bill No.5, which was formally implemented in California in January 2020. The act requires freelancers to exist in the form of labor contracts or self-employed businesses, which is applicable to the constraints and protection of laws such as the labor law.

The starting point of the bill is to protect the legitimate rights and interests of atypical labor providers (freelancers, independent contractors, etc.) under the casual economy.

But, some truck drivers said that if the AB5 act was implemented, they would no longer be able to own their own way.

They have to work for others, controlled by others, and their income will be greatly reduced, which will make it more difficult to make a living.

Increased congestion in Auckland port

As the eighth largest port in the United States, Oakland port has more than 2100 trucks passing through the dock every day. The port imports a wide range of goods.

It is understood that before the strike, Auckland port was already in congestion. A large number of imported goods and ship operations have led to the delay of ships berthing in Auckland port. 

The waiting time is 7 to 31 days, and the average time for the delivery of imported boxes is 9 days.

There is no news about when the protests will end, but the protests are exacerbating supply chain problems.

This has led to a decline in port productivity, cargo ship congestion and the accumulation of goods on the dock, increased waiting time for containers at the dock, and also led to soaring inflation.

It is reported that this is by far the largest truck driver protest, exacerbating the congestion in the port.

Last week, protests broke out in the two largest seaports in the United States, Los Angeles port and Long Beach port.

Truck drivers protested at the port, causing traffic jams and blocking the dock entrance.

The throughput of the above three ports together accounts for about half of the container freight volume in the United States.

GLA hereby reminds the majority of shippers and freight forwarders to pay timely attention to the global port congestion and avoid the cost increase caused by the delayed delivery of goods.