CLEAN TRUCK FEE BECOMES HISTORY IN LA AND LONG BEACH
A major green initiative, the Clean Truck Fee (CTF) imposed by at the Port of Los Angeles and the Port of Long Beach was abolished on December 31, 2011.
This fee was imposed on trucks with engines manufactured before 2006 and from January 1, 2012 all such trucks are now banned from the port marine terminals.
However, this ban will immediately reduce the numbers of truck servicing the ports. This will cause a shortage as truckers struggle to replace the banned trucks. Until these banned trucks are replaced, we must expect higher drayage rates to be imposed to and from the ports.
Since the CTF’s abolition, we have noted that some truckers and CFS have kept the previous CTF charges, despite the move by the ports to end them. Instead, they have renamed the levy the ‘Clean Truck Usage Fee’.
The move to banish trucks with engines older than five years old from the ports will be welcomed by the green lobby. As a neutral operation, we neither support nor oppose such a move. We do welcome, though, the removal of the CTF.
However, we cannot ignore the possible consequences of removing a large number of trucks to and from the ports. There will be an immediate shortage, relieved in the medium term only when these grounded trucks are replaced, as they will be. We have to expect in the short term both a shortage of trucking and a likely rise in drayage charges. The consolation is that the rise occurs after the seasonal peak so traffic is not at its highest levels.
At the same time as the scrapping of the CTF, we are watching other developments at ports on the US West Coast during the last couple of months. Various political groups have targeted the ports at cities like Portland, Oregon in an attempt to shut down operations and halt US import and export traffic.
Again, we make no comment in support or condemnation of these actions. We will work strenuously with the shipping lines we use to send shipping across the Pacific to keep abreast of any closure or delay caused by these people and act accordingly. In the event of long-term disruption, we could look at Canadian west coast or US east coast alternatives.
We want to reassure our current and future clients that we will keep a watching brief on the situation on the US west coast and will respond promptly to any disruption.
