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Appointment System for Containers, New Fee on Moves at LA Ports Delayed

Wednesday, June 27, 2018
Sandler, Travis & Rosenberg Trade Report

The restructuring of a long-running program designed to mitigate truck traffic at the ports of Los Angeles and Long Beach is being delayed because the Federal Maritime Commission has requested additional information about the proposed changes. The so-called PierPASS 2.0 program had been expected to launch in August but is now slated to come online sometime in the fourth quarter of the year.

Currently the PierPASS traffic mitigation fee is assessed on loaded containers entering or exiting any of the 13 international container terminals at the ports of LA and Long Beach during peak hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.). The TMF was first imposed in 2005 as an incentive to move goods during off-peak hours to address issues such as congestion, security, and air quality. However, port users have expressed a desire for changes to increase flexibility and reduce the bunching up of trucks that often occurs before the start of the off-peak shifts.

Under the revised program a single flat TMF of $31.52 per 20-foot-equivalent unit will be imposed on containers moved during both day and night shifts. The rate for all other container sizes will be $63.04. Previously the TMF was $72.09 per TEU and $144.18 per 40-foot container but was only imposed on containers shipped during peak hours. Empty containers or chassis, transshipment cargo, and import or export cargo that transits the Alameda corridor (which imposes its own fee) in a container will all continue to be exempt from the TMF.

The revised program will also require appointments for picking up import containers to spread traffic across the two shifts.

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