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Mar.7, 2016

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SURFACE & DOMESTIC TRANSPORTATION 98 THE JOURNAL OF COMMERCE MARCH 7.2016 • Deepwater Channel • Three Class 1 Railroads • Water, Highway, Rail, and Pipeline Connectivity • 10-year $1 Billion Capital Investment Project Moving America's Energy connect with us: BIG ON RELATIONSHIPS the trucking company is paid for its ser- vices," Steffl re said. "What's the market?" Steff lre brings a unique approach to the debate. As owner of Rail Delivery Services in Southern California, he understands the pricing pressures in the drayage industry. As a long-time practicing attorney, he has provided legal guidance to the American Trucking Associations and the California Trucking Association, and is knowledgeable about the complexities involved in misclas- sifi cation litigation. Nick Weiner, the Teamsters' port campaign director, is on the other side of the debate. The Teamsters union is often involved in misclassifi cation efforts and driver demonstrations at seaports because a company that shifts from the independent contractor to the employee model is subject to possible organizing by the union. Four drayage companies in Los Angeles-Long Beach in recent years have been organized by the Teamsters or are in negotiations with the union. Weiner said he sees the Hub develop- ment as part of a larger scenario in which the hundreds of small, often marginally funded drayage companies do business with pow- erful national retailers, shipping lines and carrier alliances. The fragmented drayage industry has no leverage over either of those forces, and its fate is therefore to experience downward pressure on prices and driver earnings if the industry doesn't change. "How can 600 to 700 drayage companies (in Southern California) compete in this envi- ronment?" Weiner said. He answered his own question with one word, "consolidation." The ©

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