BILL ANALYSIS Ó
AB 600
Page 1
ASSEMBLY THIRD READING
AB 600 (Bonta)
As Amended May 28, 2013
Majority vote
TRANSPORTATION 11-0
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|Ayes:|Lowenthal, Ammiano, | | |
| |Blumenfield, Bonta, | | |
| |Buchanan, Daly, Frazier, | | |
| |Gatto, Holden, Nazarian, | | |
| |Quirk-Silva | | |
| | | | |
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SUMMARY : Establishes conditions for the movement of intermodal
marine equipment by intermodal marine carriers. Specifically,
this bill :
1)Clarifies the extent to which parties in the drayage
marketplace, such as the shippers, terminal operators, and
truckers, are able to contract for drayage services for the
movement of intermodal marine equipment, as defined.
2)Establishes restrictions upon intermodal marine terminals
relative to parking violations or citations issued to
intermodal motor carriers.
3)Defines the term "intermodal marine equipment" to mean
equipment commonly used in the transport of international
cargo by an intermodal motor carrier to or from an intermodal
marine terminal, as specified.
4)Establishes that the definition of intermodal marine terminal
does not pertain to railroads as well as a warehouse, or any
other domestic terminal facility, as specified.
5)Defines the term "intermodal marine equipment provider" to
mean "the party providing intermodal marine equipment to an
intermodal motor carrier at an intermodal marine terminal
pursuant to the Uniform Intermodal Interchange and Facilities
Access Agreement or any other interchange agreement."
6)Requires intermodal marine terminals, beginning January 1,
2015, to ensure that outstanding cargo charges, including but
AB 600
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not limited to demurrage charges, be paid electronically by
the responsible party or that party's agent prior to transport
of the container. Establishes restrictions on intermodal
marine terminal operators from imposing additional charges if
a loaded container is not available for transport by an
intermodal motor carrier.
7)Defines "cargo demurrage" and treats cargo demurrage charges
differently from per diem and detention charges.
8)Modifies the circumstances under which an intermodal marine
equipment provider or an intermodal marine terminal operator
is prohibited from imposing per diem or detention charges and
treats demurrage charges in a different manner.
9)Extends restrictions placed upon intermodal marine equipment
providers from unilaterally terminating, suspending, or
restricting the equipment moves of a trucker after a challenge
is resolved, solely on the basis that the dispute resolution
process was utilized by the intermodal motor carrier.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS : Over 40% of the goods and materials from other
countries enter through California ports. Arriving from ships
and then received at the ports, they are they primarily
transported by cargo containers carried on truck vehicles as
well as rail lines. Marine terminal operators at the state's
seaports provide these containers under contractual agreements
to truck operators and the goods or containerized material is
then transported from the ports to warehouses, retail
establishments, manufacturing facilities, and railyards.
Accordingly, the movement of freight involves multiple modes of
transit: truck, ship, and rail. During a single move, a
container may be handled by all three modes.
Currently, interchange agreements establish the commercial terms
by which intermodal equipment, including trailers, chassis,
containers and associated devices, changes hands and is returned
to the equipment provider. A motor carrier (trucker) is
typically required to return intermodal equipment to the
location it was originally received. However, an equipment
provider may redirect the return of equipment to another
"satellite location" within the same commercial territory by
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either: 1) a written bilateral agreement; or 2) unilaterally by
providing notification via internet posting, e-mail, or shipping
order.
This bill is intended to clarify the rights of intermodal motor
carriers regarding the pick-up and delivery of intermodal
equipment. Further, the bill is intended to establish certain
protections and prohibit marine terminals from penalizing or
imposing certain charges on truck operators related to the
transportation of goods from the state's seaports and the
delayed return of empty cargo containers.
This bill is opposed by organizations representing the shippers
and marine terminal operators who contend that the Federal
Aviation Administration Authorization Act of 1994 (F4A),
establishes uniform regulations for the truckers basically
restricting individual states and local governments from
creating their own rules, resulting in a patchwork, regulatory
framework leading to inefficient commerce at the interstate,
intrastate, and international levels.
They further contend that the pick-up and return locations for
the equipment are generally well established and known by all
parties prior to commencement of the move. They argue that, in
some cases, the return location must be changed to ensure the
proper inventory balance of the equipment. Such circumstances
are addressed in the Uniform Intermodal Interchange and
Facilities Access Agreement (UIIA), a national compact that sets
forth the terms and conditions for the transfer and operation of
equipment under interchange between ocean and rail carriers and
motor carriers.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
FN: 0001008