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LA-Long Beach mull TEU-based tax on BCOs to fund clean trucks

THE ports of Los Angeles and Long Beach are considering a new tax from US$5 to $70 per laden TEU to pay for near-zero emission harbour trucks, reports IHS Media An economic analysis by the ports suggested the most prudent approach is to begin with the lowest possible tax, called a clean truck fund (CTF) rather than start too high and spark cargo diversion to lower cost ports

LA-Long Beach mull TEU-based tax on BCOs to fund clean trucks

THE ports of Los Angeles and Long Beach are considering a new tax from US$5 to $70 per laden TEU to pay for near-zero emission harbour trucks, reports IHS Media An economic analysis by the ports suggested the most prudent approach is to begin with the lowest possible tax, called a clean truck fund (CTF) rather than start too high and spark cargo diversion to lower cost ports

28 December 2019 - 05:48

THE ports of Los Angeles and Long Beach are considering a new tax from US$5 to $70 per laden TEU to pay for near-zero emission harbour trucks, reports IHS Media

An economic analysis by the ports suggested the most prudent approach is to begin with the lowest possible tax, called a clean truck fund (CTF) rather than start too high and spark cargo diversion to lower cost ports.



'A low CTF rate that is shown to have no competitive impact on the ports could safely be incrementally raised,' the report stated. 'Conversely, it may be impossible to undo the damage of a CTF rate that is initially set too high.'



According to the analysis, performed by Davies Transportation Consulting, the ports would lose 17,000 TEU a year with a fee of $5 per TEU, with the cargo diversion increasing to 241,000 TEU - 1.4 per cent of LA-LB's total import volume - with a fee of $70 per TEU.



The analysis concluded that a fee of $35 to $50 per TEU would generate enough revenue to adequately subsidise harbour truckers so they can afford to purchase NZE trucks, and eventually zero-emission (ZE) battery and plug-in electric trucks when they become economically available.



NZE trucks certified by the California Air Resources Board (CARB) will be exempt from the fee; only BCOs who contract with drayage operators with non-compliant trucks will pay the fee.


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