Rates

CUSTOMER ADVISORY "NOTICE OF RATE ADJUSTMENTS EFFECTIVE FEBRUARY 01 2015"

This advisory is follow up to the advisory issued on December 23nd 2014 about an anticipated rate increase for drayage services at the Port of Vancouver upon enactment of the provisions of the NEW PMV TLS and the adoption of the BC Container Trucking Act.

Please accept this as formal notice that the new TLS system established by PMV will become effective on February 01 2015. Similarly, the regulated rates recently enacted by The Provincial Government of British Columbia under the BC Container Trucking Act will also apply, which includes the application of some components of compensation to be paid to drivers and owner operators retroactively to 3rd April 2015.

The significant additional fees and paradigm of costs that apply to PMV’s New TLS System and also to the new level of compensation that must be paid to truck drivers and owner operators under the BC Container Tracking Act requires us to adjust our drayage rates commencing February 01 2015.

PMV has approved Harbour Link as a fully certified TLS drayage carrier, which requires us to adhere to the new TLS regulations enacted by PMV and to comply with the BC Container Trucking Act, which supersedes the application of the present rates of compensation set forth in the current collective bargaining agreement.

The methodology of how compensation is to be paid to drivers and owner operators under the BC Container Trucking Act, changes the cost of performing the various legs of the transit of containers between the port and a customer’s premises and the transfer of an empty container between an Off- Dock depot designated by the Shipping Line. The cost impact resulting from the new TLS system and the legislation imposed by Government significantly increases the drayage costs to perform services for our customers.

The adjustment to rates to incorporate the new paradigm of costs will affect each customer differently according to their transit matrix and requires the need to revise all existing rate quotations. We stress these rate adjustments are necessitated due solely to cost increases beyond our control that stem from the new TLS system established by PMV and by the BC Government under the BC Container Trucking Act.

All truck carriers (Union & Non-Union) that have received TLS approval by PMV to perform port drayage services are equally affected by the new paradigm of costs that flow from the new TLS regulations and the BC Container Trucking Act. The failure by a TLS licensed carrier to comply with the regulatory conditions of the new TLS regulations and the BC Container Trucking Act will result in the immediate cancelation of their TLS license and access to the Port.

Regrettably, due to the cost impact and the short notice given for the implementation of the above regulatory and legislative changes it is necessary to inform you of the need to implement rate changes effective February 1st 2015. In this regard, all rate quotations currently on file will be suspended at the close of business on January 31, 2015 and be replaced with revised rates that incorporate the new paradigm of costs.

We will be contacting all of our customers over the next several days to discuss the rate adjustments that are necessary to continue to perform assignments for you on and after February 1st 2015. We stress that these rate changes are necessitated solely due to the immediate cost increases that result from the regulatory changes imposed by PMV and by the BC Government under the BC Container Trucking Act which become effective February 1, 2015. All invoices for drayage services provided after January 31, 2015 will include the required rate adjustments.

We apologize for the need to impose rate changes on such short notice and trust that you will be understanding of the fact that such adjustments have been made necessary to conform to the new requirements established by PMV and Government to stabilize drayage services at the Port of Metro Vancouver with only approved licensed carriers.