SoCal ports approve truck plan financing contracts with Daimler
Southern California ports officials last week approved financial contracts with Daimler Truck Financial to support loan and lease programs to local drayage drivers under the ports' impending truck plan.
The ports of Long Beach and Los Angeles truck plan, which is to go into effect Oct. 1, seeks to convert all local drayage trucks to 2007 model year or newer trucks by 2012. The plan offers various grants, subsidies, and loan and lease packages to assist truck owners in replacing their vehicles. Due to differences in the approved versions of the plan, the Los Angeles plan only applies to motor carriers, while the Long Beach version provides assistance to trucking firms and independent owner-operators.
Due to the differences in the two versions of the plan, each port on Thursday approved separate contracts with Daimler.
Under terms of the contracts, the ports will guarantee all lease-to-own packages, but not the straight loan packages.
In addition to standard financial terms, trucking firms and other owners seeking to utilize the Daimler lease-to-own package will be required to agree to certain ports-defined stipulations. These include restrictions that the leased vehicle only be used within California, perform at least 300 moves per year at the two ports within the first four years of the lease, and install a vehicle locating device so the ports can track the vehicle's movements at all times.
Trucks operated by lessees not able to maintain the payments will be handed over to other lessees by the ports.
Trucking firms and owners wishing to utilize the loan program can chose to use someone other than Daimler for financing, but must give Daimler first shot at the loan.