Settlement in Truckers lawsuit against Port of Long Beach
Importers and transportation professionals should be aware of the recent settlement of the litigation over the Port of Long Beach’s Concession Plan. This past week U.S. District Court Judge Christina Snyder approved the compromise negotiated between the Port and American Trucking Association (ATA). Earlier this year preliminary rulings by the U.S. District Court and a federal appellate court in California indicated that some provisions in the port concession plans, and possibly the concession requirements in their entirety, most likely violate the Federal Aviation Administration Authorization Act.
The April 28 preliminary injunction against the Port’s Concession Agreements will remain in effect until the newly negotiated Registration and Agreement process is implemented. The Port and ATA emphasized that the new registration apparatus, which includes an agreement by carriers to provide the Port necessary operating information, will allow the Port to strictly oversee and enforce motor carrier’s compliance with federal, state, and port safety, security, and environmental regulations. Motor carriers will agree to replace old, polluting trucks with vehicles that comply with the federal Environmental Protection Agency's 2007 model emission standards. Bill Mongelluzzo of the Journal of Commerce has reported controversy over the deal. The National Retail Federation, which represents many of the retailers that ship through Southern California, said Long Beach recognized that the concession requirements did not contribute to clean air but rather added unnecessary costs for importers shipping through the port. "A compliant truck emits the same emissions regardless of who is driving the truck," said Jonathan Gold, vice president for supply chain and customs policy at NRF.
Environmental interests, meanwhile, criticized Long Beach for failing to stick with the Port of Los Angeles in attempting to preserve the concession requirements in the ports' clean-truck programs. Los Angeles's concession program had many of the same requirements as the Long Beach agreement, with the added requirement that motor carriers hire drivers as direct employees. This requirement, supported by the Teamsters, would make it easier for the Teamsters to organize harbor truck drivers and was subject to litigation filed by ATA. Despite this settlement, the Port of Los Angeles is continuing with its litigation.
The Natural Resources Defense Council criticized Long Beach for settling the lawsuit with ATA. "Rather than clean up the trucks that serve its port, Long Beach ran away from a fight with an industry that has opposed clean-air regulation locally and nationally and is content to sit on the sidelines while the Port of Los Angeles pays to clean up the trucks that serve both ports," said David Pettit, senior attorney and director of NRDC's Southern California clean-air program.
There are good arguments made by both sides of the equation – the interests of small trucking operations and environmental interests. In this tough economic environment a compromise was in the best interests of all parties and I encourage the Port of Los Angeles to follow its neighbors lead and bring an end to its costly litigation.
