Ocean cargo: Ports of LA/Long Beach “Clean Trucks” program gets messy

Patrick Burnson, Executive Editor -- Logistics Management, 8/22/2008

LOS ANGELES—It’s been labeled the “Clean Trucks” program, but issues surrounding its implementation are becoming increasingly messy, say shippers.

The National Retail Federation (NRF) requested yesterday that it be allowed to join the lawsuit filed by the American Trucking Associations (ATA) against plans by the Port of Long Beach and the Port of Los Angeles to require that trucking companies servicing port terminals obtain concessions from each port.

“The ports are making no purchases of trucking or other transportation services offered by the ATA’s regulated members,” the brief stated. “Instead, the ports are clearly regulating in a sovereign capacity transactions in transportation services between trucking companies and shippers. Mere use of a ‘concession’ label to grant those trucking companies that comply with these regulations a purported right to operate in drayage cannot supply the missing market participation by ports that is a

prerequisite for applying the doctrine.”

In an interview with LM, ATA’s Intermodal Carriers Conference executive director, Curtis E. Whalen said he wasn’t surprised that the NRF wishes to be heard at the Sept. 8 hearing.

“For shippers, there may be a lot of hidden costs associated with this program’s operating model. Capturing the revenue from the concessionaires, for example, is going to be something the Federal Maritime Commission will also want to take a look at.”

Meanwhile, two major motor carriers—Swift Transportation and Knight Transportation—announced their desire to collectively deploy up to 2,000 new Environmental Protection Agency-compliant trucks if the Port of Los Angeles program is given a green light.

From Whalen’s perspective, this represents an effort for new players to enter the drayage market while forcing smaller companies out.

“You can’t blame Swift and Knight for wanting a piece of this,” he said, “given the bounty being offered by the Port of LA. We don’t know if Long Beach is going to attract the same interest, but we think it’s wrong from a competitive perspective in any case.”

And for shippers, he added, it may mean another layer of expense in the supply chain.