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FMC Imposes Special Reporting Requirements on Port Fee Services Agreement

February 12, 2009

NR 09-04

CONTACT: KAREN V. GREGORY, Secretary (202) 523-5725

On February 11, 2009, the Federal Maritime Commission ("Commission") met and discussed anticompetitive concerns associated with the implementation of the Port of Los Angeles and the Port of Long Beach's ("Ports") Clean Truck Program ("CTP") under the Port Fee Services Agreement, FMC No. 201199. Agreement No. 201199, also known as the PortCheck Agreement, is an agreement among the Ports and private marine terminal operators which provides the means by which the Ports collect the Clean Truck Fee.

The Commission is currently pursuing an injunction under section 6 of the Shipping Act against certain aspects of the Ports' joint CTP in the U.S. District Court for the District of Columbia, Docket No. 08-CV-1895. The PortCheck Agreement, as one part of a related web of agreements, implements the harmonized CTP which the Commission has already determined is likely, by a reduction in competition, to result in an unreasonable reduction in transportation services and an unreasonable increase in transportation cost. In light of the previously filed section 6(g) action targeting the most anticompetitive provisions of the CTP, the Commission determined that it is unnecessary to separately enjoin operation of the PortCheck Agreement.

The FMC also determined to require the Parties to the Port Fees Service Agreement to file special monitoring reports with the Commission. These reports will allow the Commission to closely monitor the on-going operation of the Clean Truck Fee collection process to assess the Fee's impact on the San Pedro Bay drayage industry and the American shippers and consumers served by that industry.

Press Contact: Karen V. Gregory, Secretary (202) 523-5725.