Issue 25

January 23, 2008

LA-Long Beach to Begin Collecting Clean Trucks Fee on February 18, 2009

On February 18, 2009 the ports of Long Beach and Los Angeles will begin collecting the $35-per-TEU Clean Trucks Fee (CTF) in order to support their Clean Trucks Program.

Collection of the fee has been delayed twice since November.

The Federal Maritime Commission continues to seek a preliminary injunction in the U.S. District Court in Washington against certain aspects of the ports’ programs that the commission believes are anti-competitive under the 1984 Shipping Act. However, the initiation of the fee program is now set to commence.

The ports are anxious to begin collecting the CTF in order to provide subsidies to owner-operators and trucking companies for the purchase of new trucks.

PortCheck, a nonprofit company established by marine terminal operators in Southern California to collect the fees, has already installed the computer system that will be used to process the fee collection.

Bruce Wargo, who heads up PortCheck, said some shippers have been testing the system and claiming cargo under PortCheck, so he is confident the system can go live by Feb. 18.

Revenue from the fee, which could total $1 million a day for both ports combined, will be used to subsidize motor carriers for up to 80 percent of the cost of purchasing a new truck that meets the ports’ strict pollution standards.

FMI has taken proactive steps to ensure there is no interruption of service for our valued customers, and we are registered as an approved concessionaire with both ports. In addition, FMI has made a substantial investment in a fleet of brand new 2009 Volvo power units that meet the 2007 emission standards. These units have been financed through private funding, not through the port sponsored funding, in order to be exempt from the CTF. By doing so, we believe that FMI is one of the few companies that are out ahead of this issue and we are in position to offer a more affordable solution for many of our customers.

If you have any further questions about the Clean Trucks Program or would like to speak to an FMI sales representative about the programs we have in place to serve the ports of LA and Long Beach with “clean trucks”, please contact us at 732-750-9000 or email us at sales@fmiint.com.