California Destroying Supply Chain and Causing Inflation

(Hat-tip LARRY ELDER) Larry reads from this article: “Confronting the Supply Chain Crisis

Later in the show he also reads from this post via THE CONSERVATIVE TREE HOUSE titled:

  • The California Version of The Green New Deal and an October 16, 2020, EPA Settlement With Transportation is What’s Creating The Container Shipping Backlog – Working CA Ports 24/7 Will Not Help, Here’s Why

The trucking issue with California LA ports, ie the Port of Los Angeles (POLA) and the Port of Long Beach (POLB), is that all semi tractors have to be current with new California emissions standards.  As a consequence, that mean trucks cannot be older than 3 years if they are to pick up or deliver containers at those ports.  This issue wipes out approximately half of the fleet trucks used to move containers in/out of the port.  Operating the port 24/7 will not cure the issue, because all it does is pile up more containers that sit idle as they await a limited number of trucks to pick them up.  THIS is the central issue.

On October 16, 2020, the EPA reached a settlement agreement [DATA HERE] with California Air Resource Board (CARB) to shut down semi tractor rigs that were non-compliant with new California emission standards:

[….]

In effect, what this 2020 determination and settlement created was an inability of half the nation’s truckers from picking up anything from the Port of LA or Port of Long Beach.  Virtually all private owner operator trucks and half of the fleet trucks that are used for moving containers across the nation were shut out.

In an effort to offset the problem, transportation companies started using compliant trucks (low emission) to take the products to the California state line, where they could be transferred to non-compliant trucks who cannot enter California.   However, the scale of the problem creates an immediate bottleneck that builds over time.  It doesn’t matter if the ports start working 24/7, they are only going to end up with even more containers waiting on a limited amount of available trucks…….