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Are you interested in moving intermodal freight and expanding your owner operator business? Download the free DrayNow app from the App Store or Google Play store, or click the button below.

It has been one year since AB5 was implemented, drastically changing the way that trucking companies can operate in the state of California.

Because of AB5, truck drivers who were previously considered to be independent contractors of a carrier company are now considered to be employees due to the ABC test. Prior to this, many independent contractors would work with larger trucking companies and run freight under their authority. That no longer can be the case.

Essentially, the independent contractor model has been eliminated and what is left for truck drivers is to either become employees of a larger carrier company or completely go out on their own as owner operators. Remember that there is often a difference between who is called an independent contractor or owner operator, and true owner operators are running fully independent trucking businesses. With an entire group of truck drivers no longer able to run as independent contractors for larger carrier companies, it was anyone’s guess as to what was going to happen with the California trucking community.

How is the trucking industry in California looking after one year of AB5 rules being in full effect?

We’ve taken a look out our own DrayNow data through our operations in Northern California and Los Angeles to see what, if anything, has changed.

Through our desktop platform for brokers and mobile app for owner operators, DrayNow is connecting owner operators with local intermodal freight, in compliance with AB5. Carriers using the app are under no obligation to take freight and are freely choosing the loads that work best for them. Owner operators using the app are under their own authority and provide their own trucks and insurance.

For anyone unfamiliar with intermodal trucking, it’s referring to the first and last mile short haul drayage moves that are coming off the rails. Owner operators can pick up loads from the rail yards in Los Angeles and Northern California to then deliver to another location.

According to data from the DrayNow platform, where we’re moving intermodal freight in California, the outlook in the state on DrayNow’s intermodal platform has grown in volume. Owner operators are staying agile and looking out for new opportunities. DrayNow has registered hundreds of new carriers in the Los Angeles and Northern California markets since AB5 enforcement began. With more carriers on the app than ever before, it’s apparent that there’s a shift to smaller, independent owner operators as a source of capacity.

DrayNow service has also adapted well to the new trucking climate in California as well. The volume of intermodal freight moving in these markets on the DrayNow platform is up 17% since AB5 went into full effect, and on-time percentage is up 7 points. More available capacity combined with better drayage service makes DrayNow a very efficient way to get your freight moving in the age of AB5.

It’s clear that owner operators that have decided to go all-in on being independent business owners are actively looking for work in California. DrayNow has the local freight that they may be looking to run and expand their business opportunities in a trucking world much different than one year ago. And we’re providing quality drayage service every day in California. If you’re interested in getting set up with the DrayNow platform to connect with capacity, please fill out the form below.