How did AB5, a law specific to California, cause a global supply chain shortage? Wouldn’t it be more reasonable to say that COVID was the ultimate cause?
If you’re referring to the LA and nearby ports being clogged, my understanding is that there was a massive rise in demand as restrictions (from COVID) were lifted, and they happened to coincide with the holiday season. Workers (and truckers), also at that time, realized they deserve better working conditions and decided to stop working, leading to an inability to move containers. That’s not AB5’s fault.
There are issues with AB5 as it pertains to owner-operators (people who own their truck and drive it).
Before AB5, a carrier company could hire an owner-operator to do some work without them being employees (eg. to handle excess work that their employees could not), but now they cannot, so those carriers are not sending any more business to owner-operators.
The options for owner-operators, who paid a large sum to acquire their truck, are to move out of California, become employees (owner-operators likely don't want that, hence them acquiring their own truck), or stop driving altogether.
Since California is a major port of entry for goods in the USA, having fewer truckers to move those goods leads to logistical issues.
If you’re referring to the LA and nearby ports being clogged, my understanding is that there was a massive rise in demand as restrictions (from COVID) were lifted, and they happened to coincide with the holiday season. Workers (and truckers), also at that time, realized they deserve better working conditions and decided to stop working, leading to an inability to move containers. That’s not AB5’s fault.