Today, I will answer questions on yet another freight and logistics term – clean truck fee.
So, if you have any question on clean truck fee, you will find the answer right here.
- What is Clean Truck Fee?
- When was Clean Truck Fee First Introduced for US Shippers?
- What is Clean Trucks Program?
- When is the Expected Start Date for Collecting the Clean Truck Fee?
- Why was Clean Truck Fee Halted in 2011?
- Who is Responsible for paying Clean Truck Fee?
- What is PierPass and what is its Relation to the Clean Truck Fee?
- How do you Register on PierPass?
- How Much is PierPass now?
- What is the Purpose of the Clean Truck Fee?
- How Much is Clean Truck Fee?
- How will Clean Truck Fee Affect Shipping Fees to the US?
- How will the Clean Truck Fee Impact Shipping to US via the Ports of Long Beach and Los Angeles?
- Are there Exemptions to the Clean Truck Fee?
- How will the Clean Truck Fee Impact the Drayage Trucking Industry?
- Is the Clean Truck Fee Rate Fixed or are there Chances for Review?
- What kinds of Trucks Are Subject to the Clean Truck Fee?
- What are the Acceptable Payment Methods for Clean Truck Fee?
- Where can you find Updates on Clean Truck Fee for Long Beach and LA Ports?
- How does Clean Truck Fee assist in Port Management?
- Does the Clean Truck Fee Apply to Containers Entering or Leaving the Ports by Train?
- Who will be Collecting the Clean Truck Fee?
- What happens to Unclaimed Cargo in relation to Clean Truck Fee?
- How do you Claim Cargo through PortCheck?
- What are the Clean Truck Program Requirements for Trucks Entering the Ports Terminals?
What is Clean Truck Fee?
Clean Truck Fee
This is a fee that arises after assessment by Los Angeles and Long Beach marine terminals.
It is a component of the US Clean Air Action Plan, aimed at reducing air pollution.
It may be conjoined with or separate from the Pickup and Delivery Fee.
Clean truck fee might also appear on your Flex Port quote or invoice as a destination charge.
The fee is paid by drayage truck drivers that are either entering or leaving marine terminals of either Los Angeles or Long Beach.
The drivers that specifically pay this fee are those that employ the use of old, polluting trucks.
These do not conform to the heavy-duty truck emission standards of the Environmental Protection Agency.
When was Clean Truck Fee First Introduced for US Shippers?
The Clean Truck Fee was originally set to be introduced on 17th November 2008.
However, due to certain delays, it was initially rolled out on 18th February 2009.
However, the levying of the clean truck fee came to a halt in 2011.
This was after meeting resistance from the side effects that came with levying the fee, before being reinstated again in 2020.
What is Clean Trucks Program?
It is a program that exchanges aged diesel trucks for ones that adhere to the US EPA 2007 heavy-duty truck emission standards.
The program endorses the reduction of greenhouse gas emissions and aids the sustainable movement of cargo.
The program considers the high emissions due to trucks that enter or leave the marine terminals, particularly during peak hours.
This is when there are several trucks that idle in the ports while waiting for loading or off-loading of cargo or related procedures.
When is the Expected Start Date for Collecting the Clean Truck Fee?
With the revamping of the clean truck fee in 2020, the ports are to adopt the Clean Truck Fee on 9th March 2020.
They should also propose the development of a collection system and related software.
Why was Clean Truck Fee Halted in 2011?
Implementation of the fee led to decrease in cargo volume as shippers opted for ports that did not impose clean truck fee.
It led to increased costs for draymen in ports, since they had to buy new trucks due to the initiative.
This cost was passed onto the shippers as draymen began charging a fee to recoup losses.
The added costs led to noticeable decrease in cargo volume that entered and left the Los Angeles and Long Beach marine terminals.
Shippers chose to divert their shipments to ports that did not levy the clean truck fee.
As a result, the Los Angeles and Long Beach marine terminals registering among the lowest trade among the ports of the US.
In turn, this led to the suspension of Clean truck fee in 2011.
Who is Responsible for paying Clean Truck Fee?
The person responsible for the fee is the owner of cargo or his/her legal representative.
This is as per the program of ports levying the clean truck fee.
What is PierPass and what is its Relation to the Clean Truck Fee?
PierPass is a non-profit organisation created to address certain issues; congestion, security and air pollution at terminals, particularly during peak hours.
It imposes a traffic mitigation fee to shipments at the ports.
The owners of cargo pay the fee levied to have their shipments transported during off-peak hours.
PierPass website allows owners of cargo to log in, claim their respective shipments and proceed to pay any arising fee.
It works to improve air quality in ports which usually worsens during the peak hours of the day.
During these peak hours, ports normally have many trucks entering and leaving while hauling containers.
This leads to heavy congestion, which in turn leads to pollution from idling trucks, more so old diesel trucks.
It is part of ports initiative to curb congestion and air pollution (by idling trucks) through encouraging cargo pickup during off-peak hours.
How do you Register on PierPass?
You can register on PierPass by logging onto their website.
You then follow the instructions in place to create an account.
To create an account with PierPass, you will be required to provide certain details.
These details include demographic data and individuals to be notified upon the occurrence of certain events within the account.
The instructions are simple, easy to follow and comprehensive enough to capture any details required for claiming of cargo and fees payment.
How Much is PierPass now?
As of 1st August 2020, the PierPass traffic mitigation fee is $33.47 per twenty-foot equivalent unit.
However, for other container sizes that are more than twenty feet, the fee is $66.94.
What is the Purpose of the Clean Truck Fee?
As part of the Clean Air Pollution Plan, role of the fee is to help ports pay for Clean Truck Program implementation.
Most of the air pollution in ports is due to the fumes released by trucks loading and offloading cargo.
Thus, the essence of the fee is to encourage truck drivers to mitigate pollution by switching to eco-friendly vehicles.
Moreover, the fee facilitates funding of the Clean Trucks Program.
It funds the replacement of old diesel drayage trucks with newer ones that are eco-friendly and adhere to environmental standards.
How Much is Clean Truck Fee?
The fee for a twenty-foot container is $35 and $70 for any container size that is larger than twenty feet.
How will Clean Truck Fee Affect Shipping Fees to the US?
Shipping fees to the United States may increase as a result of imposing the clean truck fee.
It is the drayage driver who bears this cost, who in turn, increases their charges towards shippers.
Shippers will in turn pass down the extra cost to customers seeking to ship cargo to the United States.
Therefore, Clean Truck Fee will increase the cost of shipping goods to the US.
How will the Clean Truck Fee Impact Shipping to US via the Ports of Long Beach and Los Angeles?
Clean Truck Fee implementation in Los Angeles and Long Beach marine terminals may make these ports more expensive than others in the country.
Shippers may have to indirectly bear more costs from drayage drivers who are responsible for paying the fee.
Thus, shippers may divert their cargo to other US ports that have none or lower expenses for cargo entering or leaving them.
This will cause a noticeable reduction in cargo volume at Los Angeles and Long Beach marine terminals.
Reduction in cargo volume may in turn lead to severe loss in revenue.
Are there Exemptions to the Clean Truck Fee?
Clean Truck Program
It is mandatory that all trucks entering marine terminals to comply with the clean truck fee.
This includes all types of cargo trucks configured to haul containers.
There are no exemptions for these types of drayage trucks.
Trucks that do not pay the fee will not be allowed to enter the Los Angeles and Long Beach ports.
Exemptions are only there for trucks that are not structured or modelled to freight containers.
These vehicles should have exempt stickers in order to enter or leave marine terminals during drayage.
How will the Clean Truck Fee Impact the Drayage Trucking Industry?
The clean truck fee will encourage truck drivers to replace old, polluting trucks with newer models that adhere to environmental standards.
However, the costs incurred by drayage drivers may increase due to payment of the fee.
The drayage industry will become more streamlined as registration and claiming of cargo is before cargo can enter or leave marine terminals.
Furthermore, due to PierPass, there will be less congestion in the Los Angeles and Long Beach marine terminals, especially during peak hours.
This will also help in the curbing of air pollution within the ports.
Is the Clean Truck Fee Rate Fixed or are there Chances for Review?
The rate is fixed for a year.
Resolution approving it mandates an annual review to determine whether it is too high or too low in its impact on volumes.
What kinds of Trucks Are Subject to the Clean Truck Fee?
Any and all drayage trucks that are designed to freight containers are subject to the clean truck fee.
This is without exception, disregarding heavy-duty trucks that are not structured or modelled to freight containers.
What are the Acceptable Payment Methods for Clean Truck Fee?
You can pay the clean truck fee either through credit or through electronic funds transfer.
Payment can only be made after claiming the cargo but before the shipment can enter or leave the marine terminal.
Where can you find Updates on Clean Truck Fee for Long Beach and LA Ports?
You can find updates on Clean Truck Fees from the Freight Market Update newsletter and any other market trends.
How does Clean Truck Fee assist in Port Management?
The fee helps fund replacement of old, polluting trucks with cleaner, eco-friendlier trucks, which in turn reduces air pollution within the ports.
Port operators can use funds accrued from the fee to ensure old trucks are taken out of circulation and scrapped altogether.
Additionally, the fee helps in decreasing congestion in ports during peak hours through PierPass.
Owners of cargo are encouraged to pay for transportation of their shipments during off-peak hours.
This initiative helps port operators in handling of incoming or outgoing cargo.
This makes it easier to keep track of the payment of cargo once it has been claimed.
Does the Clean Truck Fee Apply to Containers Entering or Leaving the Ports by Train?
Containers that enter or leave the ports by train are not subject to the clean truck fee.
The fee solely targets drayage truck drivers in relation to containers that enter or leave the through drayage trucks.
The fee applies to old diesel trucks that do not adhere to environmental standards.
Therefore, cargo brought to or taken from ports through trains is not considered to be contributing toward air pollution within ports.
Who will be Collecting the Clean Truck Fee?
The clean truck fee from ports is collected by PortCheck.
This is a non-profit company established by marine terminal operators for the purpose of fee collection.
The aim of this is to streamline the process of payment of the clean truck fee.
PortCheck enables fee collection by one entity instead of being paid upon entry of ports by drayage truck drivers.
What happens to Unclaimed Cargo in relation to Clean Truck Fee?
Any cargo that goes unclaimed, will be barred from entering or leaving the terminals.
It will be allowed only after owner of the cargo or a legal representative comes to claim it.
Payment of the clean truck fee only occurs once cargo has been claimed by the owner and not before.
Until payment, the cargo will be held by the port.
How do you Claim Cargo through PortCheck?
You can only Claim cargo once you have registered under PierPass.
Upon registration, you will be uploaded onto PortCheck.
There are several options when it comes to claiming cargo through PortCheck:
I. If you do not have a PierPass account, you can sign up and process the cargo through the PierPass website yourself.
II. You can you can let PortCheck handle the claiming of the cargo, along with payment of the clean truck fee.
III. You can create your own PortCheck account. Here, PortCheck will claim the shipment but you will be billed directly for any fees required.
What are the Clean Truck Program Requirements for Trucks Entering the Ports Terminals?
It is a requirement that all drayage trucks entering port terminals to adhere to all state law administrating drayage trucks.
Also, the model year of the trucks should be 2007 or newer engines.
Additionally, all trucks that enter terminals must have valid RFID tags and should be registered under the Port Drayage Truck Registry.
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