Subscribe to our free, weekly email newsletter!


Drayage companies owe Port of LA money

“Of the six being charged, only one is a significant number,” said port spokesmen.
By Patrick Burnson, Executive Editor
June 07, 2011

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 Author

image
Patrick 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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

Article Topics

News · Trucking · Green · Ocean Cargo · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA