PierPASS fee remains $50 per TEU despite lower volume

PierPASS fee remains $50 per TEU despite lower volume    Marine terminal operators at the ports of Los Angeles and Long Beach this week said they will maintain the current Traffic Mitigation Fee of $50 per TEU despite the fact the program has incurred losses for the operators, said PierPASS, the nonprofit company administering the program.
   Members of the goods movement industry indicated that lower cargo volume has affected their business and that raising the TMF to cover higher labor costs and other ancillary expenses would create additional financial challenges, PierPASS said.
   'Given the current economic climate and significant drop in cargo volumes, marine terminal operators have taken significant action to cut costs,' PierPASS said in a statement. 'Those cost-cutting measures have maintained the viability of the OffPeak program and helped preserve the current TMF.'
   Revenue from the TMF has decreased due to lower cargo container volume at the two ports. In March, terminal operators announced they would eliminate one off-peak shift per week due to lack of demand. The new schedule went into effect April 6.
   'By keeping rates the same, the marine terminal operators continue to lose money on night gate operations, but the goods movement industry retains the flexibility and adaptability to weather the economic downturn while preserving and increasing gains on environmental protection and congestion relief,' said Bruce Wargo, PierPASS president and chief executive officer.
   The OffPeak program was established in 2005 to reduce congestion and air pollution in and around the Los Angeles and Long Beach ports. Under the program, all international container terminals in the two ports established five new shifts per week (Monday through Thursday from 6 p.m. to 3 a.m. and Saturday from 8 a.m. to 6 p.m.). As an incentive to use the new OffPeak shifts and to cover the added cost of the shifts, the fee is charged for most cargo movement during peak hours (Monday through Friday, 3 a.m. to 6 p.m.).