Container Fee Sidelined Until Next Year
Shippers can breathe a sigh of relief now that a container-fee bill making its way through the California Legislature has been shelved until next year.
State Sen. Alan Lowenthal (D–Long Beach) introduced earlier this year Senate Bill 974, which would have imposed a $30 fee on each 20-foot container coming into the ports of Long Beach, Los Angeles and Oakland.
The bill was hoping to raise $500 million to improve rail infrastructure and tackle environmental issues around the ports, which have seen record amounts of cargo passing through their docks.
The bill was sidelined at the urging of Gov. Arnold Schwarzenegger, who threatened to veto it. In a press release, the governor said he looked forward to working with Lowenthal and other legislators on a revised version of the bill that would protect California’s air quality and facilitate the flow of goods through California’s ports.
The bill was opposed by importers and exporters who felt it was an illegal tax unfair to businesses using California ports. The Waterfront Coalition, a Washington, D.C.–based nonprofit lobbying group representing retailers, had said it would legally challenge the container fee proposed by Lowenthal.—Deborah Belgum
