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Port of Oakland Drayage Carriers Shut Down After 40 Years
Two established drayage companies, T.G.S. Logistics and GSC Logistics, have recently closed after approximately 40 years in business, citing a challenging economic environment. T.G.S. Logistics officially ceased its operations on July 31, 2025, as announced by its president, Peter Schneider. In a heartfelt message, Schneider indicated that the decision stemmed from adverse market conditions, including reduced freight rates that have not kept pace with rising costs.
GSC Logistics had already closed a few weeks earlier, significantly impacting the drayage community, as it was the largest trucking company at the Port of Oakland, handling about 10% of its volume. The slowdown in container volume at the Port of Oakland and the Port of Long Beach is further exacerbated by uncertainty from recent tariff policies, which have contributed to a broader recalibration of the market.
In discussing the state of the industry, Schneider emphasized the necessity for reflection and change, believing the low rates witnessed since the pandemic are unsustainable. The closures highlight a critical reshaping within the drayage sector, challenging companies that have long been regarded as pillars of the transportation industry.
Expert opinion suggests that sustainable profitability in the drayage market cannot be achieved without addressing the discrepancies between freight rates and operational costs. As demand fluctuates and regulatory environments shift, it is crucial for stakeholders in the transportation sector to advocate for a more balanced pricing structure that reflects the true costs of doing business. Long-term economic health for drayage providers will depend on collaborative efforts towards rate adjustments, capacity planning, and strategic innovations to navigate these turbulent market conditions.
Carroll Fulmer Logistics, a Groveland, Florida-based trucking company founded in 1954, shut down in July. The closure is part of a broader trend affecting the transportation sector, influenced by multiple tariffs imposed by former President Donald Trump, which have created supply chain disruptions. Several companies, including GSC Logistics, which was significant at the Port of Oakland, have also confirmed closures or downturns in operations. The Port of Oakland recorded a significant drop in container volumes in June, attributed to ongoing tariff uncertainties and shifting demand from importers and exporters.
Port officials highlight that the current situation is not merely a seasonal decline but a significant recalibration of the market. Notably, the Port of Long Beach also reported a steep decrease in container throughput, indicating widespread issues within the shipping industry caused by the tariff regime. Experts, including Paul Bingham of S&P Global, compare the current economic climate to the 1930s, suggesting unprecedented levels of tariff impacts in recent history. The prolonged freight recession, stemming from these trade uncertainties, continues to affect carriers beyond just the drayage sector.
In my view, this situation underscores the critical need for stable and predictable trade policies to support the transportation industry. Uncertainty in tariffs can lead to significant operational challenges for logistics providers, driving higher costs and potentially resulting in further business closures. Transportation companies must navigate these challenges while also adapting to the changing dynamics of global trade. As we look forward, investment in technology and infrastructure will be vital for enhancing resilience against such disruptions in the future.
GSC Logistics had already closed a few weeks earlier, significantly impacting the drayage community, as it was the largest trucking company at the Port of Oakland, handling about 10% of its volume. The slowdown in container volume at the Port of Oakland and the Port of Long Beach is further exacerbated by uncertainty from recent tariff policies, which have contributed to a broader recalibration of the market.
In discussing the state of the industry, Schneider emphasized the necessity for reflection and change, believing the low rates witnessed since the pandemic are unsustainable. The closures highlight a critical reshaping within the drayage sector, challenging companies that have long been regarded as pillars of the transportation industry.
Expert opinion suggests that sustainable profitability in the drayage market cannot be achieved without addressing the discrepancies between freight rates and operational costs. As demand fluctuates and regulatory environments shift, it is crucial for stakeholders in the transportation sector to advocate for a more balanced pricing structure that reflects the true costs of doing business. Long-term economic health for drayage providers will depend on collaborative efforts towards rate adjustments, capacity planning, and strategic innovations to navigate these turbulent market conditions.
Carroll Fulmer Logistics, a Groveland, Florida-based trucking company founded in 1954, shut down in July. The closure is part of a broader trend affecting the transportation sector, influenced by multiple tariffs imposed by former President Donald Trump, which have created supply chain disruptions. Several companies, including GSC Logistics, which was significant at the Port of Oakland, have also confirmed closures or downturns in operations. The Port of Oakland recorded a significant drop in container volumes in June, attributed to ongoing tariff uncertainties and shifting demand from importers and exporters.
Port officials highlight that the current situation is not merely a seasonal decline but a significant recalibration of the market. Notably, the Port of Long Beach also reported a steep decrease in container throughput, indicating widespread issues within the shipping industry caused by the tariff regime. Experts, including Paul Bingham of S&P Global, compare the current economic climate to the 1930s, suggesting unprecedented levels of tariff impacts in recent history. The prolonged freight recession, stemming from these trade uncertainties, continues to affect carriers beyond just the drayage sector.
In my view, this situation underscores the critical need for stable and predictable trade policies to support the transportation industry. Uncertainty in tariffs can lead to significant operational challenges for logistics providers, driving higher costs and potentially resulting in further business closures. Transportation companies must navigate these challenges while also adapting to the changing dynamics of global trade. As we look forward, investment in technology and infrastructure will be vital for enhancing resilience against such disruptions in the future.
Vehicle Guru