New California rule outlaws unfair billing against intermodal truckers

SANTA CRUZ, Calif. — The American Trucking Associations and its Intermodal Motor Carrier Conference are applauding new trucking fairness legislation, which the group says brings to an end years of unfair intermodal billing practices — particularly arbitrary and excessive fee assessments and termination of interchange rights — against intermodal motor carriers moving containers primarily between ports, terminals and cargo customers.

The legislation — recently signed into law in by California Governor Arnold Schwarzenegger — was initiated by the California Trucking Association and strongly supported by ATA and the IMCC.

ATA hopes that fair intermodal law spreads across US ports

The new law prohibits ocean carriers, railroads, and marine terminal operators from imposing arbitrary per diem, detention, or demurrage charges on motor carriers when trucks transporting container cargo are delayed by such events as port gate closures, labour disruptions, unanticipated equipment diversions, terminal congestion and weekends or holidays. Such billing practices have become commonplace in port operations in California and throughout the US, ATA states.

“Ideally, California’s example should be replicated elsewhere,” ATA President and CEO Bill Graves said. “Motor carriers will no longer be unfairly billed to pay for the inefficient operational practices of intermodal equipment and terminal facilities and this law will hopefully improve the operational and work environment of the port trucking community.”

IMCC Executive Director Curtis Whalen said, “CTA and intermodal motor carriers have won an important victory in the battle to improve inefficient and unfair port operational practices. By prohibiting the assessment of fees on truckers, which are triggered by time-sensitive events beyond their control, this new law should serve to better allocate the costs of operations on those entities that exercise the operational management responsibilities of the intermodal network.

The law also prohibits intermodal marine equipment providers from terminating or suspending the equipment interchange rights of motors carriers during the exercise of dispute resolution rights and from unilaterally adding or offsetting specific charges to the motor carrier’s freight bill. “These prohibited billing practices include charging back, deducting, or offsetting per diem, detention or demurrage charges from such bills,” Whalen said.

— from Truckinginfo.com