Assemblymember O’Donnell Introduces Legislation to Ease the Supply Chain Crisis in California

For immediate release:

(SACRAMENTO) Assemblymember Patrick O’Donnell is leading a multipronged effort to strengthen our state’s strained supply chain. O’Donnell has introduced a resolution declaring a supply chain crisis in California and legislation to help the state’s ports cope with the increased volume of imports that has led to long delays, particularly at the Port of Los Angeles and Port of Long Beach.

“With high levels of container cargo shipments expected for the foreseeable future, it’s vital that we address one of the most obvious areas of congestion in our supply chain—the lack of sufficient truck chassis. If we can’t efficiently move containers at our ports, the whole system will continue to be impacted.”

Truck chassis are the trailers that trucks use to move containers.

“We simply need more truck chassis. With growing worldwide demand, it makes sense that California creates the solution here at home, to not only keep our economy moving, but also create good manufacturing jobs at the same time.”

AB 2227 would establish a tax credit of up to 6 percent for manufacturers of truck chassis built in California.

This legislation was introduced to coincide with California Ports Day, a day of outreach to California leaders on the importance of California’s ports and the enormous role they fill in the nation’s intermodal supply chain.

“The pandemic-induced global disruptions to the intermodal supply chain have resulted in a crisis which has negatively impacted the health, safety, environment, and economy of the State of California,” said John McLaurin, President of the Pacific Merchant Shipping Association (PMSA).  “We are committed to continue to work hard with Assemblyman O’Donnell and his colleagues to tackle these challenges, address the crisis, and find creative ways to make California’s ports and supply chains more resilient, efficient, and effective.”

“On behalf of the California Association of Port Authorities, I’m proud to support these important initiatives that will help get goods moving across the supply chain,” said Danny Wan, CAPA President and Port of Oakland Executive Director. “Home to our nation’s three largest container ports and responsible for handling 38% of containerized imports in the nation, California Ports play a critical role in our state and nation’s economy.”

ACR 140, also introduced by O’Donnell, officially designates the congested supply chain for imported and exported goods as a crisis which requires a multi-faceted and proactive response.

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Assemblymember Patrick O’Donnell (D-Long Beach) chairs the Assembly Select Committees on Ports and Goods Movement. He represents both the Ports of Los Angeles and Long Beach in Assembly District 70 which includes the communities of Long Beach, Signal Hill, San Pedro and Catalina Island.