Long Beach wonÆt match L.A. lease discount
The Port of Long Beach has no current plans to match a 6 percent discount on rent for container terminal operators that the neighboring Port of Los Angeles approved Thursday.
A Long Beach spokesman told American Shipper it has offered its own suite of discounts over the past year to alleviate the financial strain on its customers. Those measures include:
' Cargo incentives for terminal operators and ocean carriers that bring in volume over and above previous volumes.
' Tweaking cargo incentives for ocean carriers (which the port didn't specify).
' Postponing a cargo infrastructure fee that was to be assessed on each box handled at the port.
The port said it also has an ongoing terminal-by-terminal review of leases with operators.
Los Angeles' 6 percent discount is a direct cut on lease rates for terminals, a move that is expected to save those companies a collective $20 million from January through June 2010. Other discounts approved by Los Angeles could potentially save another $5 million.
Both Los Angeles and Long Beach have seen volumes fall consistently since the onset of the credit crisis in the United States, with Long Beach's volume falling more significantly than its neighbor. ' Eric Johnson