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1. Commodities Carried by Container

ship Operators Appendix C, table 2 contains a list of the principal moving commodities from the U.S. mainland to Puerto Rico. These commodities include automobiles, machinery, trucks, fruits and vegetables, canned foods, fresh meat and poultry, refrigerators, electrical equipment, and footwear. Most of this traffic is transported in trailerload quantities by Sea-Land, TTT, Seatrain, TMT, SACAL, and GPRL to the port of San Juan and then moved from shipside to inland points of destination by truck. Sea-Land also offers direct-call service to Ponce and Mayagüez. The most important containerized cargoes, in terms of the freight revenues produced, are machinery and parts, canned fruits and vegetables, dry goods, feed and feedstuffs, electrical equipment, paperboard, boxes and cartons, household goods, and furniture.

U.S. North Atlantic, South Atlantic, and West Coast ports to and from Puerto Rico and the pickup and delivery of cargo between its terminals at San Juan, Ponce, and Mayagüez on the one hand and the con. signee/shipper places of business on the other hand. This carrier's service also provides a port-to-port serv. ice under which its customers pickup or deliver their own cargoes at the carrier's terminal. In its door-to-door service, Sea-Land's principal truckers include: Francisco Otero, Inc., Valencia Baxt Express, Luvi Trucking, and Jose Rodriguez Coreano Co. These companies operate trucking firms on the Island and transport containers between Sea-Land's terminals and insular points.16 These truckers operate under a so-called Trailer Interchange Agreement with Sea-Land designed to govern the trucker's P/D services incidental to the water carrier's door-to-door service. The trucker is required to carry cargo insurance, vehicle insurance, a certificate of safety inspection (sec. 3.6A to 3.6C of the Trailer Interchange Agreement), and a PSC license to operate on the Island. The trucker is compensated by Sea-Land at the same rate that the water carrier assesses the shipper/consignee on both LTL traffic and TL traffic in zones 1, 1A, and 2.16 On TL traffic to zones 3, 4, 5, 6, and 7, Sea-Land pays the motor carrier a higher charge than it assesses the shipper or consignee. (This absorption by the water carrier is discussed in pt. 3.) SeaLand's pickup and delivery rates are set forth in Sea-Land's tariff FMC-No. 16. Under the terms of the agreement, the trucker provides the tractor and Sea. Land leases a 35-foot container to the trucker while the cargo is moving to its destination.

In 1967 Sea-Land's southbound traffic totalled 1,221,498 short weight tons 17 destined largely for delivery to consignees located in San Juan, Ponce, Mayagüez, and Arecibo.

2. Containership P/D Traffic and

Distribution Patterns

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Sea-Land, as already noted, offers a door-to-door service which includes ocean transportation between

14 A card file of names and addresses of the 2,408 firms was prepared from the publication. A sample was drawn from the card file and organized into three major geographic regions identified by the Puerto Rico Planning Board in 1959. This was done in order to compare 1968 data with a 1960 trucking study conducted by Robert R. Nathan Associates, Inc., Consulting Economists. The regional breakdown included San Juan, Outer Metropolitan area of San Juan, Northern Region, Ponce, Southern Region (excluding Ponce), Mayagüez, and Western Region (excluding Mayagüez). For each of the areas, except San Juan, Ponce and Mayagüez, the card file was sub. divided by selected towns and filed in alphabetical order by geographic region and category of business (i.e., textiles, leather, yarn, food, etc.).

15 Sea-Land places inbound containers in the marshalling yard of the terminal. From this place of rest, truckers pickup a TL trailer or LTL cargo and transport it inland. Outbound cargo is brought to the terminal from its inland origins, placed in the terminal, and from the place of rest, Sea Land takes over to load the full container on & vessel or to stow LTL cargo in containers for subsequent loading on a vessel. The truckers furnish only tractors for hauling Sea-Land trailers or trucks for hauling LTL cargo. They furnish no labor for loading or unloading full trailerload cargo, although they do load and unload LTL cargo at a place of rest in the terminal.

10 Most tariffs have established eight pickup and delivery zones (zones 1, 1A, 2, 3, 4, 5, 6, and 7) incidental to the carrier's door-to-door type delivery. The zones and rates applicable to each zone were established by the water carrier after negotiations with members of the trucking industry. These

the Island and apply separately for TL and LTL shipments.

17 Letter of R. L. Dausend, Director of Industrial and Regulatory Affairs, Sea-Land Service, Inc., June 4, 1968 to Leroy F. Fuller, Director, Bureau of Domestic Regulation, FMC, p. I and enclosure.



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trucking firms (Valencia Baxt Express and F. V. Otero) under Trailer Interchange Agreements for the P/D service. Like Sea-Land, these carriers also permit shipper or consignee pickup or delivery of their own cargoes at the carrier's terminal.

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Approximately 700,000 tons moved in trailerload quantities, often in 45,000 pound loads to large com. panies including EDA-sponsored factories, food

, retailers, and other receivers located mainly in San Juan. The remainder, or about 300,000 tons of LTL traffic, moved mainly to smaller consignees on the Island. Most of Sea-Land's traffic, or approximately 75 percent of the TL cargo and 85 percent of LTL traffic, was picked up by local truck operators negotiating directly with the Puerto Rican consignee rather than Sea-Land. These truckers call at Puerto Nuevo berth for TL pickups and shed D or the Buchanan LTL terminal for LTL traffic.

Unlike Sea-Land, TMT operates its own trucking subsidiary, Trans-Caribbean Motor Transport. This subsidiary hauls approximately 75 percent of TMT's traffic; 25 percent is moved by other truckers used by the shippers/consignees to supplement the servcies of the carrier's subsidiary. Trucking firms generally employed by shippers/consignees are: Hector Ortega, Luis F. Bengoa, Victor G. Tort, and Carlos Rivera. These firms are used mainly for long haul traffic to Ponce, and Mayagüez. In 1967, this carrier's southbound traffic amounted to 81,495 short tons of cargo, 75 percent of which was consigned to points in San Juan. All of this traffic was landed at its San Juan terminal. The following percentages indicate TMT's relative distribution of the 81,495 tons handled through the port of San Juan in 1967. Destination to places in:

Percent San Juan and vicinity

75 Ponce area..

15 Mayagüez area.

10 TTT, Seatrain, and SACAL offer ocean transportation between the Mainland and San Juan as well as P/D service between their respective San Juan terminals and inland points; generally employing the large


3. The Pickup and Delivery Rates of

Containership Operators The water carrier's P/D service in Puerto Rico is a transportation service which must be included in the tariffs of each carrier subject to FMC regulation. SeaLand, Seatrain, GPRL, TTT, and SACAL file tariffs with the FMC which include rates, charges, rules, and regulations applicable to their P/D service transportation of cargo within Puerto Rico, while TMT has not filed P/D service rates with the FMC.

All San Juan operations of TMT including inland trucking or marine operations are handled by Transcaribbean Motor Freight, Inc. (Trans-caribbean), a wholly owned subsidiary of TMT. The records on all Trans-caribbean operations, which are kept by TMT, are consolidated with TMT's financial G05 report to the FMC. As of December 1969, on TL traffic moving through San Juan, a TL shipment weighing 45,000 pounds consigned to consumers located in San Juan proper (zone 1) is assessed a flat $30 charge; to Río Piedras (zone 1A), $35; to Bayamón (zone 2), $40; to Caguas (zone 3), $45; to Toa Baja (zone 4), $50;

$ to either Manatí (zone 5), Barceloneta (zone 6) or Arecibo (zone 7), $50 (chart VII-1). Although there is an apparent escalating P/D service charge scale on TL shipments with the charge increasing with distance between zone 1 and 4 from the carrier's terminal, approximately 90 percent of the Island's area (covered by zones 3, 4, 5, 6, and 7) is charged the $45 or $50 delivery or pickup rate. The lower charges, $30 to

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$40, apply only to 10 percent of the Island, mainly to destinations near San Juan, Ponce, and Mayagüez (i.e., zones 1, 1A, and 2 of each city). In these metropolitan areas, as already noted, the charges assessed by the containership operators are the same as those assessed the carrier by the truckers for the trucking services performed in behalf of the containership operator. In the $45 and $50 zones (municipalities outside the metropolitan areas including zones 3, 4, 5, 6, and 7) the trucking charges generally assessed the consignee by some containership operators are $5 to $30 per trailer less than the charges which the trucker bills the water carrier for the work performed.18 It appears that this pattern was originally adopted by carriers in order to cooperate with the Commonwealth's policy of encouraging new industry to locate in areas remote from San Juan.

LTL charges, which are predicated on the basis of the weight of the shipment and the zone to which it is being delivered, generally decline with increasing quantities in three steps: shipments under 2,999 pounds, 3,000 to 5,999 pounds, 6,000 pounds and over. Table VII-1 shows that in San Juan's zone 1A, the charge for the delivery of an LTL shipment weighing less than 3,000 pounds is 85 cents per 100 pounds; a shipment weighing less than 6,000 pounds is 70 cents per 100 pounds; a shipment weighing over 6,000 pounds is 55 cents per 100 pounds. This table also shows that al

though the overall charge increases with the mileage the average per mile rate decreases. Sea-Land's LTL delivery charge to Cataño in zone 1A (1 mile), for example, is approximately 14 cents per mile, while its delivery charge to Isabella in zone 7 (67 miles) is only about 2 cents per mile. These LTL trucking charges comprise some 40 to 78 percent of the carrier's average weight rate from New York to San Juan, depending on the delivery zones involved and, for TL, the range is 4.8 to 7.9 percent of the average ocean rate. This is not to say that the LTL trucking rates in Puerto Rico are unreasonably high. These rates, however, do constitute a significant part of the overall through transportation charges on imported items moving in LTL quantities. The water carrier's LTL charge to the shipper or consignee and the amount the water carrier pays

the trucker is the same.

4. Substituted P/D Services in Puerto Rico


This section examines the current practice of certain carriers indicated in their tariffs of serving the ports of Mayagüez and Ponce through the Port of San Juan, rather than by actual vessel calls at the other ports. This practice is referred to as "Substituted Service." Substituted service is employed by Sea-Land, GPRL, TTT, and Seatrain which publish rates to San Juan, Ponce, and Mayagüez. TMT and SACAL do not publish a vessel service to Ponce and Mayagüez. These carriers, therefore, do not employ substituted service and, for this reason, are not discussed in this section.

When the carrier employs substituted service to Ponce or Mayagüez, the shipper's freight charges to

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3,000 POUNDS

(cents) (1)


MENTS 6,000



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1 1A 2 3 4 5 6 7

85 85 85 100 100 110 110 110


55 55 55 65 65 75 75 75


18 18 29 29 29

70 80 80 85 85 85

0 14 14 21 21 21

18 18 36 36 36

Source: Tariffs on file with the FMC.





Zone 1


Zone 1A
Zone 5







Zone 6


Zone 3



Zone 4


Zone 7


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- Mayaguez based zones


Sources: (a) Sea-Land Service, Inc., FMC-F No. 21;

(b) Seatrain Lines, Inc., FMC-F No. 2; (c) TransAmerican Trailer-Transport, FMC-F No. 1, and; (d) Gulf-Puerto Rico Lines, Inc., FMC-F No. 1.

Puerto Rico LTL Pickup and Delivery Rates Compared to Sea-Land's Average Ocean
Rates from New York to San Juan-1968

(rates in cents per 100 pounds)

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1 Sea-Land's average ocean rate of 141 cents per 100 pounds.(ch. IV). : The TL rate shown has been derived by converting a 45,000 lb. trailerload Sea-Land's zone charge to cents per 100 pounds. Source: Sea-Land's tariff on file with the FMC.

destination remain the same as if the vessel had called at Ponce or Mayagüez. For example, Sea-Land's 1969 freight charge from New York to Ponce on a trailerload of beans (45,000 pounds) was 95 cents per 100 pounds. When Sea-Land deposits the trailer at San Juan and trucks it to Ponce, the shipper's ocean freight charge to Ponce remains unchanged. Because Sea-Land moves most of this traffic, this discussion centers primarily on Sea-Land's substituted service. Its overland service is typical of that provided on a lesser scale by GPRL, Seatrain, and TTT. a. Water Carriers Providing Substituted Service

In contrast to the early 1960's when the Bull Lines and containership operators provided frequent directcall service to Ponce and Mayagüez, today, four containership operators (i.e. Sea-Land, GPRL, Seatrain, and TTT), which hold themselves out for direct-call service to Ponce and Mayagüez, call at these ports infrequently, or not at all. These ports, however, are served frequently by road from San Juan. In 1969, Sea-Land provided only 8 to 12 direct service calls per year, apparently due to a lack of sufficient vessels with shipmounted cranes capable of handling containers at Ponce and Mayagüez.19 There are no shore-side cranes at Ponce and Mayagüez and the terminal's apron is very narrow. Thus, Sea-Land generally serves these

ports by road from San Juan. It is 70 miles by road from San Juan to Ponce; 110 miles from San Juan to Mayagüez. The actual trucking time from San Juan to Ponce is about 3 hours; to Mayagüez, about 4 hours. Sea-Land serves these ports by road on a daily basis. GPRL, which operates one containership and three breakbulk vessels, calls at Ponce and Mayagüez using its breakbulk vessels since its roll-on/roll-off containership, the SS New Yorker, can call at San Juan only. This carrier, therefore, moves containers to and from Ponce and Mayagüez by road. TTT, which operates the SS Ponce de Leon, a large roll-on/roll-off vessel, calls at San Juan only due to the lack of adequate terminal facilities at Ponce and Mayagüez for roll-on/roll-off operators.?

Seatrain, which operates three vessels to and from San Juan on a biweekly basis, calls at San Juan only. Sea-Land, GPRL, Seatrain, and TTT arrange for transport of cargo by truck from San Juan, where they have their principal terminals, to their terminals at Ponce and Mayagüez. The actual trucking, as noted earlier in this chapter, is performed by local Puerto Rican truck. ers using tractor-trailer equipment under contract with the water carriers. The substituted service charges which are paid to the truckers by the water carrier, are absorbed by the carrier rather than by the shipper. Sea-Land's and TTT's San Juan container terminals


19 Sea-Land is now installing a shore-side crane at Mayagüez and an agree. ment to install one at Ponce is under negotiation.

20 The terminal at Ponce cannot accommodate this vessel's offloading/loading


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