PierPass—an organization that addresses multi-terminal issues such as congestion, security, and air quality at the Port of Los Angeles and Port of Long Beach—will be replacing the current incentive-based pricing model with an appointment-based system. This system will use a single flat fee on both daytime and nighttime container moves, in an effort to improve the current OffPeak program. The revised OffPeak program, which is subject to regulatory approval, is expected to launch in August 2018.
According to PierPass, “the new program is expected to mitigate the congestion that occurs at marine terminals in the late afternoon as trucks queue prior to the start of OffPeak gates at 6 p.m.” They also believe the new system will allow more dual transactions, “as it will be easier to pair container drop-offs and pick-ups if there is no difference in Traffic Mitigation Fee (TMF) rates between day and night.”
The New Fee
The TMF currently charged only on Peak cargo moves will be replaced by a fee that is constant across all hours of operation, says PierPass. The new flat fee will be $31.52 per (twenty-food equivalent unit), rather than the current TMF of $72.09 per TEU and the rate for all other sizes will be a flat rate of $63.04.
The following cargo is exempt:
- Empty containers or empty chassis
- Import cargo or export cargo that transits the Alameda corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority
- Domestic cargo
- Transshipment cargo
This new program should significantly improve congestion issues at the Port of Los Angeles and Port of Long Beach. If you have questions about the new program, contact your Mohawk customer service representative.