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PierPass fee increase postponed to August

PierPass fee increase postponed to August

   Terminal operators in the ports of Long Beach and Los Angeles this week postponed until Aug. 1 a fee increase tied to off-peak operating hours.

   The operators said in early June they would raise the fee on cargo arriving or leaving Southern California container terminals during daytime, weekday hours from $50 to $60 per TEU. The fee change was to begin July 4, but has been pushed back.

   'The schedule change is in response to feedback from customers and other partners in the goods movement industry, and is intended to provide more time for cargo owners to prepare for the adjusted (fee),' said Bruce Wargo, president of PierPass, the nonprofit organization terminal operators set up to collect and disburse the fees back to the terminals to fund the extra costs of night and weekend gates.

Wargo

   PierPass said the fee increase, the first since the program began in 2006, is needed to address revenue shortfalls since more than half of cargo is now moving at off-peak times.

   'While rate increases are never desirable, it's important to recognize the value gained through adequate funding of the PierPass OffPeak program,' Wargo said.