“Container fees of the sort contemplated in the bill would violate the Commerce Clause of the U.S. Constitution, international law and U.S. treaty obligations, and would expose the state of California to court challenge were it to become law,” said Tracy Mullin, NRF president and chief executive officer, in a letter to Schwarzenegger Wednesday. “In addition, the fee would substantially increase the cost of moving goods through L.A.-Long Beach and adversely impact these ports’ competitiveness and workforce as retailers and other shippers are forced to look for alternative ports outside the state of California to enter their goods.”
SB 927, sponsored by state Sen. Alan Lowenthal, D-Long Beach, passed the state Senate 22-16 Aug. 31, one day after being approved 42-35 in the state Assembly, and is now awaiting action by Schwarzenegger.
The measure, which NRF estimates would cost retailers and other shippers $500 million a year, would impose a $60 tax on each 40-foot container moving through the ports of Los Angeles and Long Beach.
Supporters say the bill would raise funds for improving port security, cleaning up pollution and building port infrastructure, but the measure is written in a way that would allow it to be used for non-transportation projects and initiatives as well, NRF added.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now