Drayage companies owe Port of LA money

“Of the six being charged, only one is a significant number,” said port spokesmen.

By ·

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 [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!

Article Topics

Green · Ocean Cargo · Trucking · All Topics
Latest Whitepaper
How Lean is your Lean Quality Program?
Avoid quality program bureaucracy that can sap logistics productivity and increase costs
Download Today!
From the September 2016 Issue
Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.
Time for Asia’s ports to rebuild
Is the freight recession upon us…again?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Supply Chain Best Practices: Visibility to In-Transit Inventory
During this webcast you'll learn on how various organizations have gained instant access to in-transit parcels and given access to this information to stakeholders.
Register Today!
EDITORS' PICKS
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...

Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....