Drayage companies owe Port of LA money
“Of the six being charged, only one is a significant number,” said port spokesmen.
in the NewsState of Logistics 2016: Pursue mutual benefit ATA and Cass data continue to point to signs of confusion for the freight economy AAR reports more declines for week ending October 8 Dairy industry leader builds on mobile racking system success Fast Deliveries to Grow by 40 percent Year-on-Year Until 2025, Says New Study More News
Port of Los Angeles spokesmen said that half a dozen motor carriers are now being investigated for not honoring contracts providing cash incentives for the operation of “clean trucks.”
“Of the six being charged, only one is a significant number,” said port spokesman, Phillip Sanfield. “But we are going to insist that all the trucking companies pay what is owed to us.”
That “significant number” belongs to Phoenix-based, Swift Transportation Co., Inc. which failed to send enough trucks to the port for subsidies totaling more than $1.5 million.
Other carriers who received “clean truck” subsidies without living up to the contract include: Meyer Trucking Inc., ($80,000); Central Cal Transportation, ($16,000); Knight Transportation, ($4,000); LMD Integrated Logistic Services Inc., ($3,000); and Pacer Cartage, ($4,000).
Under the original contract, the port gave drayage carriers as much as $20,000 for each new 2007 federal emissions-compliant truck purchased. The condition of the subsidy, however, required truckers to make at least 150 container pickup trips annually.
The news surfaces on the eve of a hearing before the U.S. Ninth Circuit Court of Appeals on June 10th to arguments relating to aspects of the Port of Los Angeles’ version of the Clean Trucks Program. At issue is whether the port should can limit the types of truckers allowed to haul goods into its terminals.
The American Trucking Associations filed a federal lawsuit against the port shortly after the $1.6 billion Clean Trucks Program began on Oct. 1, 2008, requiring all carriers entering the port to meet 2007 federal emissions standards by 2012.
According to Sanfield, the port is confident that it will prevail in this legal battle.
For related articles click here.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction? Badcock Home Furniture &more: Out with paper, in with Cloud TMS View More From this Issue