Leasing companies petition FMC to prevent imposition of chassis fee

DCLI, Flexi-Van and TRAC asked the Federal Maritime Commission to prevent imposition of a chassis fee by terminal operators at the ports of Los Angeles and Long Beach.

   The three major chassis leasing companies have filed a petition with the Federal Maritime Commission (FMC) asking container terminal operators to illustrate how their plan to impose a $5 fee on chassis moving in and out of the ports of Los Angeles and Long Beach, which is scheduled to take effect Sept. 1, is not a violation of the Shipping Act.
   The FMC said it expects a notice inviting comments on the petition on Wednesday afternoon.
   The petition was filed on behalf of Direct ChassisLink Inc. (DCLI), Flexi-Van Leasing Inc. and TRAC Intermodal, which claim the fee would cost them $28 million annually. The petition said they have about 80,000 chassis in the area in their so-called “Pool of Pools.”
   FMC Chairman Mario Cordero said earlier this month that the agency’s staff is reviewing plans by members of the West Coast Marine Terminal Operator Agreement (WCMTOA) to impose the fee, which they say is needed to compensate terminals for the space they use to store the lessors chassis and the services they perform for them.
   The lessors contend the chassis services fee “is not specifically authorized by the agreement they have filed with the FMC,” and “cannot be reasonably believed to be authorized by the agreement.”
   The leasing companies said the fee is an “unjust and unreasonable practice relating to receiving, handling, storing, or delivering property” because:
     • They claim it creates an undue or unreasonable preference or advantage to chassis owners who are not chassis providers;
     • WCMTOA members use the chassis providers’ chassis and don’t compensate the chassis providers;
     • and WCMTOA members’ charges for maintenance and repair are at hourly rates and include WCMTOA members’ overhead and administrative costs.