Shippers to pay more for drayage services at Port of Long Beach

Patrick Burnson, Executive Editor -- Logistics Management, 12/18/2007

LONG BEACH, Calif.—In a move that will surely mean higher rates for shippers, Port of Long Beach commissioners voted yesterday to impose a $35 charge on every loaded twenty-foot equivalent unit (TEU) entering or leaving the ports by short-haul (or “drayage”) truck beginning June 1, 2008.

“The vote was unanimous,” said Dr. Robert Kanter, the port’s managing Director, environmental affairs and planning.”

In an interview with Logistics Management last evening, Kanter noted that the commissioners considered arguments by shippers against the measure, but were determined to advance the process, nonetheless.

“The West Waterfront Coalition was one group that voiced its opposition,” he said, “and I’m sure there will be others when the Port of Los Angeles considers the same kind of action on Friday.”

Indeed, other shipper associations–including the National Industrial Transportation League and the Retail Industry Leaders Association–have publicly stated why the action will be harmful to their constituents.

The tax would apply through 2012 when all trucks must meet 2007 emission standards. Marine terminal operators will be made responsible for collecting the tax from cargo owners. These monies would then be turned over to the port—where they will be placed in a special port-established fund. This fund would be used to finance the replacement and retrofit of the drayage fleet.

The fee would not apply to containers entering or leaving the ports by train and would end when the fleet of drayage trucks meets Clean Air Action Plan (CAAP) requirements in about 2012.
 
The Port of Los Angeles commission is considering a similar action this Thursday, thereby making  the Clean Trucks Fee applicable to the entire San Pedro Bay.