L.A., Long Beach Ports' Pickup Fees Increase by 20 Percent
Starting July 4, the cost to collect a cargo container during prime-time daylight hours at the ports of Los Angeles and Long Beach, Calif., will increase from $50 to $60 for a 20-foot container. For a 40-foot container, the cost will rise from $100 to $120.
This is the first increase since 2006 in the so-called “traffic-mitigation fee.” The fee helps pay for the PierPass OffPeak program, which allows companies to collect their cargo containers at night before #8232;3 a.m. without incurring an additional charge. A fee is required for most cargo movement between 3 a.m. and 6 p.m. on Mondays through Fridays.
The new charge will offset a $52.3 million shortfall in revenue in 2010 for the PierPass program, which was launched in 2005 to help move cargo through the ports faster and at a steady stream. “It is clear that absent some action, TMF revenue will continue to fall short of OffPeak gate costs and endanger the program,” said Bruce Wargo, president of PierPass, formed by the ports’ 13 marine terminal operators. “With 55 percent of non-exempt cargo movements taking place during OffPeak hours, the program has become an important element of port operations.”
Marine terminal operators considered other options, such as reducing services offered or even charging a fee to collect cargo at night. But a rise in the daytime pickup fee seemed to be the best alternative. Beginning in the middle of 2012, terminal operators will adjust the pickup fee on an annual basis based on changes in maritime labor costs.—Deborah Belgum
