Here is an overview of what CAAP is all about. The ports of Los Angeles and Long Beach have levied mandates on the port trucking community to use only trucks that are 2007 technology, or later. Currently the plan has barred any truck manufactured before 1990 from entering the port terminals. The balance of the vehicles 1991-2006 will be shut out from the port terminals in 2010, requiring all trucks after that point to be 2007 or newer. Each port trucking company must sign a Concession Agreement to be granted access into the terminals. The plan also calls for each trucking company to pay a fee of $2500.00 and $250.00 for the privilege of entering the port terminal gate. On top of that, the trucker must mount an RFID tag on every truck and pay another $100.00 per truck as an annual cost.
The two ports plans mirror each other except for the fact that the Port Of Los Angeles will require the use of employee drivers only. No Independent Contractors will be granted access to their terminals. To fund this hastily formed plan, every loaded container (import or export) will be forced to pay a $35.00 per TEU “Clean Truck Fee” (CTF) which equates to $35.00 for a 20′ and $70.00 for a 40′ container before the cargo can be delivered for export, or picked up as an import. The plans also require trucking companies to supply confidential information, private financial information, and to use the ports employment service before using any other form of hiring for needed employees.
What does this mean to the shipper?
In a word, increased shipping costs. It means a reduction in capacity within the port trucking industry. It means the trucking rates for port related moves will increase to subsidize the new vehicles currently being mandated by this plan. It means there will be a clean truck fee charged by the trucking company to the shipper, or the shipper can pay the added cost of $35.00 per TEU administered by the ports.
As you may expect, CAAP has met opposition, not to the environmental goals of the plan, but to the draconian mandates on private and small businesses throughout Southern California. Currently there is litigation and Federal reviews being conducted by the Federal Maritime Commission, American Trucking Association, California Trucking Association, and many other international transportation associations.
This plan was scheduled to take full affect in November 2008, however operational glitches and opposition has delayed the roll out until February 18, 2009. The reviews and litigation are ongoing, so I will keep all of Tricon Transportation’s valued customers updated as the CAAP moves forward.