On Monday, December 17, 2007 the Long Beach Harbor Commission approved an amendment to their tariff imposing a $70 container (FEU) fee on all loaded containers moving through Long Beach container terminals. Fee revenue will be deposited into a special account to pay for a fleet of new clean burning harbor trucks. The Port of Los Angeles is expected to approve the same Clean Truck Fee.

The Clean Truck Fee is the latest action on part of southern California's ports to implement their Clean Air Action Plan as it pertains to harbor drayage.

Digest of the Fee
Beginning June 1, 2008 all beneficial cargo owners (BCOs) moving containerized freight through Long Beach marine terminals will be assessed $70 per FEU. Marine Terminal Operators are to collect the fee and deposit revenue into a special account used to pay for a fleet of clean burning harbor trucks. The fee will sunset when 100% of the estimated 16,000 harbor trucks calling the port operate using a clean burning model year 2007 engine or operate using similar approved emission reducing technologies.

The fee will not be levied on empty containers and those moving by way of on-dock rail. Bulk, project and other non-containerized cargoes moving by truck through the ports will not be assessed the fee.

Brokers, logistics providers, ocean carriers or others are forbidden from paying the Clean Truck Fee.

Problems with the Fee

No relationship exists between BCO and marine terminal operator. There exists no business relationship between BCO and marine terminal operator to allow for payment of the Clean Truck Fee. The approved tariff change does not outline payment of the fee from beneficial cargo owners moving consolidated shipments.

Containerized BCOs are singled out. The fee is designed to promote the creation of a fleet of clean burning harbor trucks. However the fee does not apply to beneficial cargo owners contracting with licensed motor carriers that use older dirtier trucks that move non-containerized cargoes such as bulk and project cargo.

The fee penalizes BCOs contracting for carriage on clean burning trucks. A growing number of BCOs are participating in programs like the Coalition for Responsible Transportation that ensure that motor carriers use the latest clean burning technologies. The Clean Truck Fee would still apply to those BCOs that already use a clean burning truck.

There are no financial controls on fee management. The approved tariff does not include any information as to how clean truck funds are to be dispersed. BCOs responsible for paying the fee should be concerned that there are no financial controls outlined to ensure that fee revenue is responsibly administered.

More Information

Click here to read the Waterfront Coalition's Letter on the Clean Truck Fee
Click here to download the tariff amendment
Click here for the Port of Long Beach Staff Report on the Clean Truck Fee
Click here for the Fact Sheet from the Port of Long Beach

Click here to read more about the Clean Air Action Plan for trucking
Click here to find out how you can participate in the Coalition for Respsonsible Transportation