Tuesday, February 10, 2015

L.A./Long Beach trucking companies invoke "force majeure"

The Harbor Trucking Association announced Friday that more than 70 trucking firms are declaring a "force majeure," a legal term used when outside forces makes it difficult to fulfill a contract — in this case, referring to the unparalleled congestion at the ports of Los Angeles and Long Beach.

As of Friday, 18 container ships were anchored off the twin ports, awaiting their turn to be unloaded, according to the Marine Exchange of Southern California.

"It’s the biggest issue facing our members at this time," said Weston LaBar, executive director of the Harbor Trucking Association. "Motor carriers are being charged hefty bills because yards are too congested to take (containers) back."

The association, which represents over 65 percent of trucking companies that work the ports in Southern California, says the firms are protecting themselves from growing fees charged by shipping lines during the cargo congestion crisis. Drayage firms say they have paid hundreds of thousands of dollars in fees over the past few months for not returning an empty

container or not being able to pick up a loaded container, something they say is beyond their control.

Trucking companies can be charged $85 to $175 a day for storing the equipment and $100 to $225 a day in late fees.

The terminal yards have been clogged with cargo caused by processing higher volumes from mega container ships and by the uneven availability of chassis to haul the goods away — which means terminals often cannot accept containers or return them before penalties are accrued.

The Harbor Trucking Association will also demand that a Motor Carrier Bill of Rights be added to the Uniform Intermodal Interchange and Facilities Access Agreement, a contract that outlines guidelines and rules for exchanging equipment among ocean carriers, railroads, leasing companies and intermodal trucking companies.

For more of the Press-Telegram story: www.presstelegram.com


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