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

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 United States Environmental Protection Agency (EPA) has awarded the Port of Oakland $277,885 to upgrade cargo-handling equipment and reduce exhaust emissions on the waterfront.

Entitled the Positive Train Control Enforcement and Implementation Act of 2015, the bill would extend the 2015 PTC implementation deadline to the end of 2018.

Carloads were down 5.4 percent annually to 285,856, and intermodal was up 2.1 percent to 280,844.

Did you know that there is a correlation between logistics solutions and customer loyalty? 70% of customers are willing to spend more money for good customer service which means you must have on-time delivery, proficient inventory management and a strong logistics strategy.

While coffee is one of the first things on the minds of many people early in the morning, it was especially prevalent this week, when Starbucks Chairman and CEO Howard Schultz gave the keynote address at this week’s Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Diego.

Article Topics

News · Trucking · Green · Ocean Cargo · All topics


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

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA