PierPass Adjusts Program

Non-profit group hiking TMF by $10 per 20-foot container, starting April 3.

PierPass announced that it is adjusting its current Traffic Mitigation Fee on container traffic that uses marine terminal gates under the OffPeak program.

The adjustment is slated to go into effect April 3.

 

The new TMF rate will be $50 per 20-foot equivalent unit, up from the original fee of $40 per TEU rate. The TMF is an assessment paid to non-intermodal cargo containers using the terminal gates at the ports of Los Angeles and Long Beach between the designated peak hours of 3 AM to 6 PM Monday through Friday.

 

The fees collected are used to finance the labor, operational and administrative costs of the OffPeak night gate and Saturday gate operations at the Ports of Los Angeles and Long Beach. 

 

The initial $40.00 per TEU rate was based on a 2004 market analysis and in-depth consultation with marine terminal management. It was the best estimate possible in the existing business and trade environment. However, as the review demonstrated, the realities of current labor costs, coupled with our increased understanding of the actual operations of the OffPeak program, establish that an adjusted fee is necessary to run a balanced operation.

 

The management of PierPass also noted that between 30-35 percent of the gate activity has moved to the OffPeak operations. The firm originally estimated that between 15-20 percent of the traffic would switch to night operations.