FMC launches investigation of SoCal port's truck plan

The Federal Maritime Commission on Wednesday said it is launching an investigation of portions of the Long Beach and Los Angeles ports?trucking re-regulation plan.

The commission, charged with enforcing federal maritime regulations related to international ocean-borne commerce, said it intends to investigate a ports-created access licensing scheme, port-granted incentives to trucking firms joining the truck plan, and other actions by the ports restricting access to marine terminals by drayage providers.

The ports?truck plan, to begin Oct. 1, would replace the local fleet of nearly 17,000 drayage trucks with cleaner models. To achieve this, the ports have developed an access license model that allows port officials to determine who can enter the two ports?marine terminals. Los Angeles port officials, concerned about a lack of initial signups for the access licenses, also created a incentive program that provides up to $30,000 per truck to port-approved fleets willing to enter port drayage service.

The FMC board voted 2-1 Wednesday in favor of launching the investigation, with Commissioner Joseph Brennan dissenting.

The commission appreciates the potential environmental and public health benefits under the Ports Clean Truck program; however, certain aspects of the ports CTPs may violate the Shipping Act, said the FMC in a statement. Accordingly, the investigation initiated today is tailored to focus on those elements of the CTP that causes the greatest concerns under the Shipping Act.  The Port of Long Beach said it is reviewing an FMC Order of Investigation issued Wednesday. We are certain that these practices will be found reasonable and lawful under the Shipping Act of 1984, said Richard Steinke, Long Beach port executive director, in a statement Wednesday.

On Tuesday, the FMC issued a letter to the two ports and Southern California marine terminal operators that said the ports had failed to provide the commission with additional required documentation as part of the ports?filing of an agreement to discuss the port truck plan with the terminal operators.

The letter said marine terminal operators, which are mandated under the truck plan to act as gatekeepers and enforcers for the ports, should not implement key elements of the truck plan until the ports file the proper documentation with the FMC and the commission fully reviews all submissions. 

Source: American Shipper