Issue 1, 2018

23 www.ortrucking.org Issue 1 | 2018 will be used to manufacture noodles. The movement of the grain from the field to the elevator is considered interstate. How can this be the case? Much of this analysis is the result of case law derived from Interstate Commerce Commission (ICC) hearings and court decisions. The decision here derives from, “For certain types of shipments, the interstate nature of the transportation can become blurred as products are temporarily warehoused or moved by various carriers—some of whom may only complete intrastate portions of the journey.” Deherrera v. Decker Truck Line, Inc., 820 F.3d 1147, 1155 (10th Cir. 2016). It is well settled that the determination of whether transportation between two points in a state is interstate (or foreign) or intrastate in nature depends on the “essential character” of the shipment. Crucial to this determination is the shipper’s fixed and persisting intent at the time of shipment. Intent is ascertained from all the facts and circumstances surrounding the transportation. The Oregon Wheat Industry states on its webpage, “Since more than 85% of Oregon-grown wheat is exported, it is no surprise that wheat is the #1 product exported through the Port of Portland.” See http://oregonfresh.net/education/ oregon-agriculture-production/oregon- wheat-industry. This fact carries weight to determine the “shipper’s fixed and persisting intent at the time of shipment.” Let’s look at another example. An Oregon orchard owner picks apples and transports a load of apples a few miles from the field to a processing plant near Portland where the apples are processed into apple sauce and canned. The canned apples are then shipped to a warehouse across the state border in Washington state. Is the transportation of the apples from the field to the canning facility interstate transportation? No, it is not. What distinguishes this example from the instance of transportation of wheat? Generally speaking, ICC case law establishes that “substantial processing” breaks the continuity of a continuing interstate shipment. In our orchard example, the processing of apples into apple sauce and the canning process substantially changed the character of the apples so that the transportation from the Oregon orchard to the Portland, Oregon processing plant alone constitutes intrastate transportation on the part of the orchard owner. The second transportation from Portland in Washington was interstate transportation. Applicability of Federal Motor Carrier Safety Regulations can be dependent upon whether or not transportation is interstate or intrastate. It is important to understand the difference.