FMC to Drop Clean-Trucks Lawsuit

The Federal Maritime Commission is moving to dismiss its challenge to the Los Angeles-Long Beach clean-trucks program, in effect telling the U.S. District Court in Washington that events have overtaken the commission's litigation.

The FMC on Tuesday filed its motion asking Judge Richard Leon to withdraw the commission's challenge to the clean-trucks programs under the Shipping Act of 1984.

Judge Leon in April had denied the FMC's request for a preliminary injunction against certain elements of the truck plans that the commission believes are anti-competitive.

In seeking dismissal of its lawsuit, the commission noted that some of its challenges to the clean-trucks plans were rendered moot by district and appellate court rulings in California involving a lawsuit by the American Trucking Associations.

The ATA, addressing the clean-trucks plans under a different body of law, was granted a preliminary injunction against certain concession requirements in the plans. Primary among the concession requirements was a mandate in the Port of Los Angeles plan that motor carriers phase employee drivers into their operations.

The employee mandate provision, which was supported by the Teamsters union in its effort to organize harbor truck drivers, was also a prime target in the FMC suit.

The FMC noted that the Port of Long Beach last month substantially eliminated certain differences between its program and the Los Angeles clean-trucks program regarding exemptions from the $35-per-TEU clean-trucks fees charged on non-compliant trucks. The FMC had stated that those differences created competition issues at the ports.

Finally, the commission said that because of the sharp drop in trade resulting from the global economic recession, it is unlikely that the truck plans would lead to a spike in harbor drayage rates.

The ports expressed satisfaction with the FMC's decision. "Our clean-trucks program is ahead of schedule with successful turnover of the older fleet," said Geraldine Knatz, executive director of the Port of Los Angeles. "Today, more than 5,000 2007-compliant trucks are handling over 50 percent of the container hauls at our port," she said in a press release.

Port staff will meet Thursday with the harbor commission to formulate the port's response to the FMC filing.

The ports also want the FMC to dismiss its underlying investigation of the clean-trucks programs, which is still pending.

The ATA lawsuit under the rates, routes and services regulations of the Federal Aviation Administration Authorization Act is not affected by the FMC action. Judge Christina Snyder set Dec. 15 as the hearing date for the ATA suit in the U.S. District Court in Los Angeles.

Contact Bill Mongelluzzo at bmongelluzzo@joc.com.