The West Coast Marine Terminal Operator Agreement (WCMTOA) will postpone until August 1, 2011, its planned adjustment to the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach CA. This 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.
The TMF will increase August 1 to $60 per TEU (20-foot equivalent unit) or $120 per FEU (40-ft equivalent unit), from $50 per TEU currently. The TMF adjustment was originally planned to take effect July 4.
“By reducing operating losses for the PierPass OffPeak program, the TMF adjustment will enable terminal operators to continue operating the extra shifts that reduce congestion and air pollution in and around the ports,” said Bruce Wargo, president of PierPass, the non-profit formed by WCMTOA in 2005 that runs the OffPeak program.
By nearly doubling the number of operating hours per week, the PierPass OffPeak program increases the capacity of America’s largest port complex without requiring more infrastructure. Staffing the additional shifts (currently four to five per week, depending on the terminal) also provides greater work opportunities for truckers and cargo operations due to expanded economic activity in and around the ports.
This is the first TMF increase since 2006. Since then, hourly labor costs have risen 31%. Terminals have operated the OffPeak gates at a loss since the program’s start in 2005. The shortfall between TMF revenues and OffPeak gate costs was $52.3 million in 2010.
