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LA/Long Beach Increase Traffic Mitigation Fee

September 19, 2012

 

PierPass Inc. announced Traffic Mitigation Fees will increase to $61.50 per twenty-foot-equivalent (TEU) unit and $123 per forty-foot-equivalent unit (FEU), effective Aug. 1, 2012.

Traffic Mitigation Fees (TMF) at the Ports of Los Angeles  and Long Beach  will increase to $61.50 per TEU, or $123 for a FEU container. The increase in TMF takes effect Aug. 1, 2012 and will be used to address labor cost increases scheduled to take effect July 1, 2012, according to PierPass Inc.

The Traffic Mitigation Fee helps pay for the night and Saturday marine terminal shifts created by the PierPass OffPeak program http://pierpass.org/offpeak-information/ to relieve daytime congestion in and around the ports. It also provides a financial incentive to move cargo during less congested times. The TMF is charged for non-exempt containers moving during peak hours (Monday through Friday, 3 a.m. to 6 p.m.), according to PierPass.

The terminals have operated the OffPeak gates at a loss since the program’s start in 2005, when they doubled the number of shifts per week, essentially spreading the same number of containers over twice the working hours, PierPass said in a statement. Cargo volume since 2005 has been essentially flat. The shortfall between TMF revenues and OffPeak gate costs was $55 million in 2011 and $52.3 million in 2010.

Before PierPass was created in 2005, the ports and nearby roads were gridlocked, ships were backed up in the harbor unable to unload, and cargo owners suffered long delays in receiving and shipping vital goods.

“The OffPeak program greatly increases the capacity of America’s largest port complex without requiring additional infrastructure,” said Bruce Wargo, president of PierPass, the not-for-profit company that runs the OffPeak program. “The program increases the already tremendous competitive advantage held by the Los Angeles / Long Beach port complex, which has the most concentrated set of port assets of any port in North America,” he added.

Visit www.pierpass-tmf.org for more information.

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