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FMC Moves to Withdraw Court Case on Los Angeles/Long Beach Clean Trucks Agreement

On June 16, 2009, the Federal Maritime Commission filed a motion requesting the U.S. District Court in Washington DC withdraw its court case seeking to enjoin aspects of FMC Agreement No. 201170, the Los Angeles/Long Beach Port Infrastructure and Environmental Programs Cooperative Working Agreement.

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FMC Chairman Brennan stated "While today's action remains subject to approval of the U.S. District Court, I am gratified that we have taken this step to clear the path for the Ports' Clean Trucks Programs."

FMC's Preliminary Injunction Request Denied in April 2009

In October 2008, the FMC authorized staff to file a complaint with the U.S. District Court in DC pursuant to section 6(h) of the Shipping Act of 1984 to enjoin aspects of Agreement No. 201170, including concession requirements that mandated exclusive use of employee-drivers in the Port of Los Angeles. (See ITT's Online Archives or 10/30/08 news, 08103005, for BP summary.)

Following a hearing before U.S. District Court Judge Leon, the court, in April 2009, denied the FMC's request for a preliminary. (See ITT's Online Archives or 04/20/09 news, 09042020, for BP summary.)

Certain Developments Resolved FMC Concerns

According to the FMC, the following events substantially resolved the issues underpinning its decision to bring its action:

Injunction has become moot. On April 28, 2009, in unrelated court proceedings initiated by the American Trucking Associations (ATA) against the ports of Los Angeles and Long Beach in the U.S. District Court for the Central District of California, that court enjoined, among other things, the Port of Los Angeles employee-driver mandate. (See ITT's Online Archives or 05/08/09 news, 09050820, for BP summary.)

LB eliminated differences. In addition, effective on or about May 4, 2009, the Port of Long Beach Board of Harbor Commissioners took action that substantially eliminated the differences between the two ports' exemptions from its Clean Truck Fees and incentives to truckers.

Economic downturn. Finally, the steep economic downturn has made it unlikely that the circumstances presently exist to produce an unreasonable increase in transportation costs with respect to shipping through the San Pedro Ports.

(See ITT's Online Archives or 06/17/09 news, (Ref:0061799) 1, for BP summary announcing FMC's dismissal request.)

FMC contact- Karen Gregory (202) 523-5725

FMC press release (NR 09-10, dated 06/16/09) available at http://www.fmc.gov/speeches/newsrelease.asp?SPEECH_ID=281