Source: Logistics Management

Long Beach, California -- In hearings staged late last week, the U.S. Court of Appeals for the Ninth Circuit unanimously held that the California lower court erred in refusing to enjoin the truck concession programs instituted by the Ports of Los Angeles and Long Beach.

"We are gratified that calmer minds prevailed in this ruling," said Curtis Whalen, executive director, Intermodal Motor Carriers Conference - an affiliate of the American Trucking Associations (ATA). "The ports should realize before long that the decline in cargo throughput is going to worsen if they continue to throw obstacles up like this."

For now, the decision represents a significant is victory for the ATA, which sought a preliminary injunction on the ports' concession programs on the basis that they would extensively alter economic regulation and result in irreparable harm to the motor carrier industry. Port of Long Beach spokesmen were not ready to concede entirely, however.

"The decision today does not change the legal status of our Clean Trucks Program or any other requirements currently in effect at the port," said Richard D. Steinke, the ports's executive director. "The Port will continue to study the decision and appropriate next steps of the Court of Appeals, and anticipates that further proceedings will be held promptly before the District Court."

The Mayor of Los Angeles was equally defiant.

"We are committed to fighting this case because our Clean Truck Program is the most sustainable plan for ensuring a clean, safe and secure trucking system for the long-haul at the Port of Los Angeles," said Antonio Villaraigosa.

As reported in LM, the major issue raised by the court concerned theargument also set forth in the amicus curiae brief filed by the National Industrial Transportation League (NITL) last fall voicing opposition to the truck concession agreements as they would unlawfully regulate "prices, routes and services" of trucking companies and substantially interfere with international maritime commerce.

In a statement issued by the appellate court, spokesmen noted that the district court "shall proceed as quickly as possible so that ATA will not suffer unnecessary harm from any unintentional provisions."

The Clean Truck Program is designed to encourage rapid improvement of air quality at both ports through use of grants and financial incentives that will allow trucking companies to accelerate the replacement of older, high-polluting trucks with newer, cleaner trucks.

While the Port of Los Angeles has been mandating that drivers not be drawn from an owner-operator pool, Long Beach allows terminal access to trucking companies that employ drivers, independent operators or companies that use a combination of employees and independent operators.