Posted on: Jul 16, 2015
Effective on August 1st, the traffic mitigation fee charged for container movements at the ports of Los Angeles and Long Beach will increase to $69.17 per 20-foot-equivalent unit (TEU) from the current $66.50 per-TEU fee. The rate per 40-foot container also increased and is now $138.34. The last traffic mitigation fee increase was in August 2013. PierPass, which administers the extended gates program, stated that the increase reflects the higher labor costs that terminal operators face as a result of the recently signed coastwide contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA).
The PierPass extended gates program operates four weeknight shifts plus a Saturday day shift in addition to five regular daytime shifts each week. Revenues from the fee serve two purposes: they help to compensate terminals for running five extra shifts each week, and the fees also encourage truckers and cargo interests to deliver and retrieve containers during off-peak hours when traffic is lighter. The program has helped spread out truck traffic at the 13 container terminals in Los Angeles-Long Beach over 16 hours each day, helping to reduce terminal congestion. Since its inception 10 years ago, the PierPass extended gates program has consistently pushed slightly more than 50 percent of truck traffic at the ports to off-peak hours. The traffic mitigation fee is not charged during the off-peak shifts. The Los Angeles-Long Beach port complex handles more than 15 million TEUs a year.