New California law restricts port fees
Oct 5, 2005 9:04 AM
Governor Arnold Schwarzenegger has signed legislation initiated by the California Trucking Association (ATA) and strongly supported by the American Trucking Associations that would prohibit or restrict many unfair practices and intermodal fee assessments common in California port operations, according to ATA information.
The new law prohibits intermodal marine equipment providers (ocean carriers and railroads) or marine terminal operators from imposing per diem, detention, or demurrage charges on motor carriers.
The per diem in questions refers to intermodal cargo transportation activities triggered by specific operational events, including port gate closures, labor disruptions, last minute equipment diversions, terminal congestion, etc.
In the past, the fees were routinely charged to motor carriers in circumstances that resulted from inefficient port operational practices beyond the intermodal motor carrier's control.
For more information, click here for the ATA Web site at truckline.com.
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