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DRAYAGE INCENTIVES * USA - Did Big Trucking Companies Get Sweetheart Deal From L.A.?
Long Beach,CA,USA -The Cunningham Report -Sept 7, 2008: -- A number of drayage companies that currently service the port are irate over the incentive plan that the Port of Los Angeles has instituted to get big trucking companies to bring their clean trucks to the port drayage business. They say the $20,000 per truck payment plus up to $10,000 in drayage incentives being provided to big carriers - such as Swift Transportation, Knight Transportation, and National Retail Systems - make it impossible for smaller drayage companies that have serviced the ports for years to compete... They point out that the companies coming in under the incentive program do not have to turn in an old truck to be scrapped in order to receive the incentive. To get a subsidy to buy a new truck, an old truck currently in drayage service has to be turned in for scrap. This presents a problem, since most drayage companies do not own their own trucks, but rely on owner-operator drivers. In order to get the subsidy, a company usually has to buy an old truck from an owner-operator in order to have one to turn in... The larger trucking companies not only avoid the dirty truck fee by bringing their clean trucks to the terminal, some of the current drayage executives complain, but they get more time to phase in their privately funded clean trucks plus a per-dray incentive plan that kicks in once they reach a minimum number of drays. They were also able to buy their trucks out of state, thus avoiding California sales tax and to negotiate a new deal that was made available to others just weeks before the Oct. 1 deadline, critics say... Capt. John Holmes, the ports' deputy executive director of operations, said he doesn't get why some folks are unhappy. Anybody can participate in the same incentive program if they wish, he said, and some smaller companies are among the 14 who have signed letters of intent...
Labels: "Clean Trucks" Program
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