The PierPass program that operates in the Ports of Los Angeles and Long Beach, Calif., to provide off-peak service options for container lines and truckers, announced a fee increase of 20% to $60, to take effect on July 4.
The announcement made June 7 raises the fee for cargo pickups and deliveries at the port during daytime business hours from $50, where it has been since 2006. There is no charge for pickups and deliveries during off-peak weeknight hours starting at 6 p.m., as part of an effort to spread out cargo pickups and deliveries and cut down on delays.
The program, begun to alleviate congestion at terminal gates for truckers and their customers, was started in 2005 as international cargo rose sharply through the nation’s two largest ports. The intent was to spread out the volume over two shifts and have the fees pay the full cost of the second shift.
The fees established through the West Coast Marine Terminal Operation Operating Agreement are being raised “in order to sustain continued operation of PierPass off-peak gates,” a statement issued by PierPass operators said. The program fell $52.3 million short of breaking even last year after a 31% rise in labor costs over five years.
“It is clear that absent some action, TMF revenue will continue to fall short of off-peak gate costs and endanger the program,” said Bruce Wargo, president of PierPass.
Program options were evaluated, the statement said, including decreasing service, raising the fee or instituting a fee for off-peak pickups and deliveries. The fee increase was “determined by the marine terminal operators to be the most effective and least disruptive way to reduce the losses,” the statement said.
Next year, the fee will be adjusted based on maritime labor costs calculated by the Pacific Maritime Association, whose members are shipping lines.
