* California - Trucking Cos. try new approach at congested ports, buying trucks and hiring drivers as employees
-- A handful of companies are betting the days of truck drivers owning their own vehicles is coming to an end... Operating primarily in Southern California, the firms are buying trucks and employing drivers full time to haul goods the short distance between ports and nearby rail yards and warehouses, a key link in the national supply chain known as drayage trucking... The new outfits include a startup backed by private equity firm Saybrook Capital LLC and others that converted from independent contractor models, where drivers own or lease their own trucks. While all-employee drayage companies account for less than 5% of the more than 10,000 drivers at Southern California ports, that’s double their share a year ago, according to the International Brotherhood of Teamsters, which is working to organize the employee drivers... Some trucking experts see the domestic drayage market, estimated by research firm FTR Transportation Intelligence as generating $12 billion in annual revenue, as ripe for a shakeup. Large ports from Long Beach to Newark are growing more congested amid a general trucker shortage, creating an opening for companies that promise to use reliable labor and equipment to operate more efficiently... The independent contractor model, where drivers own or lease their trucks, is also under attack...
(Photo from BLOOMBERG NEWS - Trucks wait in line at the Port of Los Angeles in February. Congestion at the nation’s ports is spurring some companies to hire truck drivers as employees) -- Los Angeles, CAL, USA - The WSJ, by ERICA E. PHILLIPS - July 1, 2015Labels: owner operators, trucking industry news USA
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