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With decree they intend to alleviate congestion in California ports

2021-10-21T19:11:17.125Z


The decree directs state agencies to seek state, federal and private land for short-term container storage.


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(CNN Business) -

To ease cargo congestion at California shipping ports, Governor Gavin Newsom issued an executive order Wednesday to address a shortage of truck drivers and the storage of containers needed to move critical cargo out of the ports.

"California ports are critical to our local, state and national economies and the state is taking steps to support the movement of goods in the face of global disruptions," Governor Newsom said in a statement Wednesday.

"My administration will continue to work with federal, state and industry partners on innovative solutions to address immediate challenges while at the same time bringing our distribution processes into the 21st century."

The decree directs state agencies to seek state, federal and private land for short-term container storage, while also identifying truck loading routes so the state can temporarily waive road weight limits.

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The decree, which is effective immediately, comes after hundreds of cargo ships have been stuck off the California coast in recent months, with 64 cargo ships anchored as of Wednesday in Los Angeles and Long Beach.

In Los Angeles alone, 200,000 containers are trapped at sea.

Those two ports handle about 35% of all containers in the United States and about 40% of US imports and 25% of exports, according to the governor's office.

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A key reason for support in ports is what is happening on land.

The worker shortage across the country, specifically in the trucking industry, has slowed down the supply chain.

Trucks move cargo from ports, from food, electronics to toys, to warehouses or retailers.

Due to the shortage of drivers, cargo is deposited in the port and ships are unable to unload.

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The decree addresses this in several ways.

First, it directs the state to identify both state and non-state sites, including federally owned, locally owned and private parcels, that could be available to address short-term storage needs to address the supply chain and distribution crisis. "

And second, the state will temporarily lift limitations on the amount of cargo trucks can carry.

"It will identify priority freight routes to be considered for a temporary exemption from current gross vehicle weight limits," the order says.

For example, a 5.5 meter tractor trailer with five axles currently has a limit of 15,000 kilograms.

That would be temporarily lifted, allowing trucks to carry more cargo.

Addressing the labor shortage

The decree is also aimed at addressing educational programs and training for dockworkers and others in the supply chain.

The United States is 80,000 short of truck drivers, according to the American Trucking Association, and projects a shortage of 160,000 drivers by 2030 if no action is taken.

The order directs the California Workforce Development Agency to use "existing resources to identify potential driver training partnerships to increase education, career technical education, job training, and workforce development opportunities for drivers. dock workers and other workers throughout the supply chain. "

While California has little control over the ships and routes they take to privately owned ports, the federal government does. President Biden asked the Port of Los Angeles and Long Beach to move into 24/7 operations. But there is little demand from importers to use the night hours due to a lack of trucks and drivers used to move cargo, according to the Port of Los Angeles.

"While the challenges of moving goods and managing the supply chain are largely within the purview of the federal government and industry, the state can take steps to reduce congestion at California ports and ensure that people in California and throughout the country and the world can access goods and supplies, "the order reads.

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Source: cnnespanol

All news articles on 2021-10-21

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