Dive Brief:

• The Federal Marine Commission received Wednesday a petition by three chassis leasers insisting the ports of Los Angeles and Long Beach, CA, justify a surcharge on their equipment.
• The ports of Los Angeles and Long Beach implemented a $5 charge on the entry and exit of leaser-owned chassis, which the companies claim would cost $28 million annually. The charge is scheduled to take effect Sep. 1. 
• The port claims the charge is for storage and maintenance of the equipment, although the charge will not apply to cargo-owned chassis. The petitioners contend the charge unreasonably favors carrier-owned chassis over the leasers' services.  

Dive Insight:

Although TRAC Intermodal records $691 million in annual revenues, $28 million of annual fees (even if cumulative) is no small cost, and other ports and leasers are likely to follow the case closely.

Since the petition was filed to demand justification for the fee by claiming a violation of the Shipping Act of 1984 in spirit and process, the regulator's decision on the matter may set a legal precedent for the relationship between ports, carriers and leasers. 

There are two likely outcomes: The petition may be rebuked, which would set a precedent for other ports to add a Chassis Service Charge or the Federal Maritime Commission sides with the leasers, preventing these and potentially other similar surcharges. The regulator will receive comments until Aug. 26.