Second Port of Oakland harbor trucker – TGS - is shutting down

A second Port of Oakland harbor trucker has shut down operations adding to concerns about the future of the Port.

On July 31^st, TGS Logistics, based in Fresno, California, shut its doors, according to the company President Peter Schneider. In a LinkedIn post, Schneider said: “It is with great sadness to report that T.G.S. Logistics, Inc. is closed. Effective today.”

The TGS shutdown follows the shutdown of GSC which reportedly accounted for 11% of Port of Oakland trucking imports. That announcement was made on July 12^th by GSC Chairman Scott Taylor.

On August 1^st, Port of Oakland Maritime Director Bryan Brandes responded to an AJOT query about the demise of TGS with the following statement: “TGS will be dearly missed. TGS was held in very high respect within the industry and personally, for their service, integrity, involvement, leadership and friendship. TGS built and maintained valued relationships with their customers, policy makers, industry peers and their employees.I have worked with TGS … since 2002. I could always count on them for providing quality service, clear on what they could and not do, participating in industry events as well as providing advice how our operations could improve.The closure of TGS should send a clear message to industry that truckers are not recognized for their critical role in logistics.”

A Harbor Trucking Association (HTA) “Norcal Motor Carrier Conference” has been scheduled for August 6^th at the Port of Oakland to discuss issues including container terminal productivity, truck appointment availability and clean truck rules and more.

On July 16^th, Schneider discussed problems facing GSC and other harbor truckers in a LinkedIn post:

“I am still taking calls, answering texts and fielding emails as to why this could happen (to GSC). The answer is simple, yet very complicated.The simple part...

• Rates are too low, far too low compared to rising costs. The complicated part...
• There has been a freight recession since Aug-22, with little signs of rates increasing enough to cover all the cost increases.
• Regulations hamper progress and growth.
• New state laws and regulations that are never business friendly.
• Minimum wage increases.
• Large, double digit Insurance increases from every side; liability, cargo, property, excess, workers comp, health benefits...and we don't have claims.
• Companies like ours (and hundreds of others) went out and bought a lot of assets ahead of CARB (California Air Resources Board) regulations that didn't stick, with higher interest rates, higher purchase prices in a severely down market.
• The rate reductions, coupled with increased costs, have forced hundreds of truckers to go out of business.

Do you want your trucker to be successful? Pay a fair rate.

If the rate is 10-20% lower than two years ago, that is taking advantage.

GSC is a massive, unfortunate casualty... MASSIVE and unfair. They did everything right. My heart goes out to the Taylor's, the management team, the drivers and everyone else at GSC.”

The loss of TGS has maritime stakeholders worried about the Port’s future, especially following the GSC demise.

One stakeholder said: “It is like losing a family member. Truckers are part of our family and if we don’t take care of our truckers they will be gone.”

Peter Schneider has been a pillar of the Port of Oakland maritime community for years and a key decision-maker in any major transportation decision impacting the Port.

Due to his Fresno, California location, Schneider has been a leading voice for California agricultural exporters in the San Joaquin Valley. Schneider has been a fixture at Agriculture Transportation Coalition annual meetings where he has been recognized for his leadership and the achievements of TGS.He has also been a confidant of Port of Oakland executives who have frequently sought his counsel prior to announcing new transportation initiatives.

Schneider has been a leader that all elements of the Northern California maritime community have been able to rally around.

Maritime stakeholders are now wondering which will be the next Port of Oakland harbor trucking company to fall.