T HE T RANSPORTATION L AWYER TLA Feature Articles U NDERSTANDING THE UIIA AND H OW IT C ONTRIBUTES TO THE D EVELOPMENT AND E XPANSION OF THE I NTERMODAL M ARKET Marc S. Blubaugh their own interchange agreements. of the current version of the UIIA is attached as Exhibit 1 and can be Since 1991, the UIIA has been downloaded by the public without administered by the Intermodal charge at http://www.uiia.org/assets/ Association of North America documents/newuiia-Home.pdf. The (“IANA”). IANA was formed in purpose of the UIIA is to promote 1991 by virtue of a combination of intermodal productivity and operat- three different trade associations. The T ing efficiencies through the uniform wo recent events illustrate the Intermodal Marketing Association industry processes and procedures. challenges facing providers of represented intermodal marketing The UIIA is used by all major rail- transportation and logistics services companies who were establishing roads in the United States as well as when problems arise at a port that business relationships with railroads by almost all of the world’s ocean car- interfere with the usual, efficient flow and motor carriers at the time. riers who berth in the United States. of goods. First, labor disruptions last- The National Railroad Intermodal Therefore, motor carriers who wish ing for several months at the Ports Association provided a forum for rail- to do business with ocean carriers or of Los Angeles and Long Beach in roads and their suppliers to meet. rail carriers typically become “partici- late 2014 and early 2015 generated Finally, the Intermodal Transportation pants” to the UIIA. enormous challenges for motor car- Association offered an organization riers and others trying to pick up where all three modes could come Who Participates in and or drop off containers. Second, the together to address common industry Who Maintains the UIIA? bankruptcy filing of Hanjin Shipping operating issues. Co., Ltd. (“Hanjin”) had a domino In 1973, a task force of representa- In the more than forty (40) years effect that temporarily paralyzed port tives of the Association of American since the UIIA was developed, the operations and has had a variety of Railroads, the Equipment Interchange UIIA has undergone many changes, residual consequences that continue Association (a former affiliate of the and modifications to the UIIA are to unfold. This article focuses primar- American Trucking Associations), and made on a periodic basis. Some of ily on the effect that these events had the Steamship Operators Intermodal these modifications result from par- upon equipment providers and motor Committee formed a joint task force ticipants’ experience under the UIIA. carriers who are participants to the under the auspices of the Office of Others result from industry changes Uniform Intermodal Interchange and Facilitation in the U.S. Department themselves. For instance, deregula- Facilities Access Agreement (“UIIA”). of Transportation and the Maritime tion caused a variety of changes that Administration in the Department of needed to be addressed under the What Is The UIIA? Commerce to draft a uniform agree- UIIA. Likewise, operational changes— The UIIA is a uniform industry ment for the interchange of trailers, such as the fact that the railroads and agreement that governs the inter- containers, and related equipment steamship lines no longer own much change of intermodal equipment ( i.e., used in intermodal surface transporta- of the intermodal equipment in ques- intermodal containers, chassis, trail- tion. The UIIA was the fruit of those tion but, rather, have sold much of that ers, etc.) among ocean carriers, rail efforts. Up until that point, ocean equipment to equipment leasing com- carriers, and motor carriers. A copy carriers and rail carriers largely used panies—have driven other changes. * Benesch, Friedlander, Coplan & Aronoff LLP, Columbus, Ohio The most recent modifications to the T ransporTaTion L awyers a ssociaTion • c anadian T ransporT L awyers a ssociaTion 15
TLA Feature Articles UIIA were effective as recently as carrier is obligated to pay the reason- Equipment Use September 19, 2016. able and customary costs to repair Absent a separate contract the damage that occurred while the Ocean carriers, rail carriers, and between the equipment provider and equipment was in the motor carrier’s motor carriers can each be “par- a motor carrier, a motor carrier who possession. The equipment provider ticipants” to the UIIA. Notably, takes possession of equipment must is obligated to detail the repairs per- equipment lessors who lease contain- use that equipment only for the autho- formed and provide the repair bill or ers and chassis to ocean carriers are rized purpose, must not authorize use other details regarding the party who not presently eligible to be participants of the equipment by others, and must performed the repair. A motor carrier to the UIIA. Likewise, marine termi- promptly return the equipment after is required only to pay the lesser of nal operators (unlike rail terminal the interchange purpose is complete. the reasonable and customary cost to operators) are not presently eligible Equipment must generally be returned repair and the casualty loss value of the to be participants to the UIIA. Motor to the physical location where it was equipment. If an equipment provider carriers and equipment providers (i.e., received unless the equipment provider uses a manned in-gate, any invoice for directs the motor carrier to return ocean carriers and rail carriers) who repairs must issue no later than 165 wish to become participants to the the equipment to a satellite location days from the date of the interchange UIIA must complete an application. identified in a separate agreement where the damage was documented. If between the parties or identified in an equipment provider uses an auto- What Are Some of the IANA’s Equipment Return Location mated in-gate, any invoice for repairs Directory (“ERLD”). By reviewing the Key Terms and Conditions of must issue no later than 120 days from list of possible satellite locations in the date of the interchange where the the UIIA? the ERLD, a motor carrier will know damage was documented. Other time- the geographic range and distance of frames run from the date that repairs Premises Access various possible return locations and are actually performed. In any event, As the name suggests, the UIIA may, therefore, charge its customer an various exceptions exist to the fore- expressly authorizes motor carriers amount sufficient to take the return going timelines when the equipment to enter upon terminal facilities for trip into account. has been involved in an accident that the sole purpose of completing an might give rise to litigation. interchange of intermodal equipment. Equipment Loss or Destruction Motor carriers are also obligated Equipment providers may exclude a If equipment is lost, stolen, or to return the equipment free of all UIIA participant, however, for good completely destroyed the motor carrier dunnage, bracing, contaminants, and cause shown. An equipment provider must pay the equipment provider the debris. The floor of the container who wishes to exclude a participating actual cash value of the equipment or must be swept clean when returned. UIIA motor carrier must issue a writ- the depreciated replacement value as Tire damage is called out sep- ten statement to the motor carrier by agreed by the parties in the provider’s arately under the UIIA. Repair of registered mail explaining the reasons Addendum. In exchange for payment, certain tire damage arising during for its suspension of access rights. The the equipment provider must assign to the motor carrier’s possession of the notice must issue at least three (3) the motor carrier its rights against any equipment is the sole responsibility of days prior to the suspension. responsible third-party. The motor car- the motor carrier while other types of Of course, since marine termi- rier must notify the equipment provider damage is the sole responsibility of the within thirty (30) days of the equip- nal operators are not signatories to equipment provider. the UIIA, the UIIA does not gen- ment being lost, stolen, or completely erally govern motor carriers’ access destroyed. If the equipment provider Fines and Citations to marine terminals (as contrasted itself concludes that that equipment Motor carriers are responsible for is lost, stolen, or destroyed, the equip- with rail terminals). For instance, paying any fines or citations arising ment provider must notify the motor the UIIA would not limit a marine out of its own acts or omissions in the carrier within eighteen (18) months terminal operator’s ability to prohibit operation of the equipment during the of the date of interchange. Otherwise, a motor carrier from accessing its interchange period. The motor carrier the equipment provider forfeits its right port facility because of anticipated is obligated to provide to the equip- to pursue the motor carrier. disruption caused by picketing aimed ment provider a corrected copy of at that motor carrier. In other words, any equipment-related citations. The Equipment Damage a marine terminal operator cannot motor carrier remains responsible for breach an agreement to which it is If equipment is damaged (but the equipment even if it interchanges not a party. not completely destroyed), the motor the equipment to another party. 16 T ransporTaTion L awyers a ssociaTion • c anadian T ransporT L awyers a ssociaTion
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