Trucks with engine years 2006 and older will be banned from port marine terminals in 2012

Beginning January 1, 2012 both the Port of Los Angeles and the Port of Long Beach will no longer be assessing a Clean Truck Fee on trucks with an engine year of 2006 and older. Trucks with an engine year of 2006 and older will be banned from port marine terminals.

The PortCheck web site (www.pierpass-tmf.org) will remain open in January 2012 for payment of billed and accrued Clean Truck Fees prior to January 1, 2011.

PortCheck will be refunding Clean Truck Fees that were deposited in accounts but not spent. Customers should check their accounts and request their deposit refund no later than January 15, 2012. Deposit refunds that are not requested by January 15, 2012 may be forfeited as unclaimed deposits.

Customers with questions may contact the PortCheck Customer Service Center at 1-877-863-3310 for assistance.

This year to date, cargo movement has remained relatively stable at the Ports of Long Beach and Los Angeles, and the current number of OffPeak shifts are sufficiently meeting demand.  However, as traffic movements shift, PierPASS will be ready to calibrate the right balance of nighttime gates required to maintain the free-flow of traffic in and out of the ports, and ensure that the ports work night and day to ease traffic congestion on Southern California roads.

PierPASS currently operates 57 OffPeak gates across 13 terminals, but this number has been adjusted over the years to ensure that terminals operate at optimum capacity.

In order to accurately gauge and predict the requisite number of nighttime gates, PierPASS continuously monitors weekly and monthly cargo volumes, talks to terminal operators and steamship lines about what trends in trade they observe, and meets with cargo owners about their expectations on cargo movements in coming seasons.

Terminal operators often must adapt to market conditions during the traditionally slow period of January to April, and then expand shifts during peak season. Being flexible to market fluctuations keeps the OffPeak program viable and the Ports of Long Beach and Los Angeles competitive.

PierPASS will continue to provide updates on the status of container traffic moving during nighttime and daytime shifts, and work with terminal operators, truck drivers, and shippers to ensure that gates are being fully optimized.

According to a new study on port emissions, air quality at the Ports of Los Angeles and Long Beach has continued to improve during 2010.

• The Port of Long Beach diesel particulate matter emissions decreased by 42 percent

• The Port of Los Angeles diesel particulate matter emissions decreased by 39 percent

The port-funded study measured significant truck emission decreases in 2010. Among several clean air measures implemented and managed by the ports, such as cleaner truck standards, the study cites efforts to reduce idling times as being responsible for improved air quality.

Since its inception, PierPASS has managed more than 20 million OffPeak truck trips. During typical weekday traffic, OffPeak shifts handle over 63,000 truck trips. This dilution in traffic congestion not only positively affects air quality and truck emissions, but also improves idling times. The port-funded study indicated the noticeable differences in pollution measurements starting from 2005, the year many clean air measures, including the PierPASS OffPeak program, went into effect.

These results are welcomed, as last year the American Lung Association released a report citing the greater Los Angeles area as the worse city in the country for ozone layer pollution – examining fine particulate matter.

With programs such as PierPASS’ OffPeak Gates in place, and with more companies taking advantage of other clean transportation programs, pollution reduction at the ports is expected to continue in coming years.

Since the TMF rate increase took effect three weeks ago, PierPass has continued to closely monitor traffic.  Additionally, in order to gauge current attitudes towards the OffPeak program, PierPass conducted a survey of its top 50 TMF-paying  customers.  In a gratifying display of interest, over half of those surveyed (52 percent) responded.  So far, what has been observed anecdotally has matched with respondents’ answers – overall, a majority of customers support the PierPass OffPeak program.

The survey responses indicate that:

• When given the option between a government solution and an industry driven solution, customers overwhelmingly prefer an industry driven solution such as PierPass.
• When asked about whether general port conditions have improved since PierPass’ inception in 2005, a majority of respondents believe that conditions have improved.
• When asked how important OffPeak gates are to ongoing business, most respondents indicated that nighttime gates are very important.
• Almost all respondents said that they take advantage of OffPeak gates.
• When asked how much the TMF increase would affect their business, most respondents believe that an increase in the TMF will affect their business only somewhat.
• Finally, a majority of respondents indicated that a fee increase of $10 per TEU would encourage their decision to use nighttime gates.

As always, PierPass welcomes any and all feedback concerning the OffPeak program and issues dealing with improved efficiency at the ports.

Effective today, the Traffic Mitigation Fee at the Ports of Los Angeles and Long Beach will increase to $60 per TEU / $120 per FEU for containers moving Monday – Friday, 3 a.m. – 6 p.m. The fee increase will help to offset the increased cost to operate PierPass OffPeak gates.

By nearly doubling the number of operating hours per week, the PierPass OffPeak program provides tremendous value and future growth potential to the goods movement industry, greatly increasing the capacity of America’s largest port complex without requiring additional infrastructure. Staffing the additional shifts (currently four to five per week, depending on the terminal) also provides additional work opportunities for truckers and cargo operations due to expanded economic activity in and around the ports.

If you have questions about the TMF increase, please call our customer service center at 1-877-863-3310.

Over the years, several customers and stakeholders have asked for more information on PierPass’ operational costs and financial statements. In an effort to provide the industry with this information, we have asked our third-party auditors to prepare a detailed summary of their findings. That summary is available here. You will see that the revenue collected significantly falls short of the costs of the program. We hope these summaries address any remaining questions.

As a friendly reminder, next week the adjustment to the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will go into effect. Effective August 1, the current Traffic Mitigation Fee at the Ports of Los Angeles and Long Beach will increase to $60 per TEU / $120 per FEU for containers moving Monday – Friday, 3 a.m. – 6 p.m.  The fee increase will help to offset the increased cost to operate PierPass OffPeak gates.
 
The PierPass OffPeak program provides tremendous value and future growth potential to the goods movement industry, greatly increasing the capacity of America’s largest port complex without adding additional infrastructure. OffPeak gates help to minimize daytime traffic congestion, allow cargo to move faster at night on less crowded roads, and enables truck owners to deliver more loads through lower turn-times and twice the number of working hours in a day. The TMF funds the nighttime gates, which make these benefits possible.

If you have questions about the TMF increase, please call our customer service center at 1-877-863-3310.

First conceived of as an initiative to mitigate traffic congestion and reduce pollution in and around the Ports of Los Angeles and Long Beach, the PierPass OffPeak program has evolved over the past six years to serve as a major contributor of jobs throughout San Pedro Bay.

By essentially doubling the capacity of the ports through the addition of nighttime and weekend shifts, the program directly creates more than 200 jobs in the Ports.

Moreover, an untold number of additional jobs are created in the local area due to increased economic activity from OffPeak shifts. These jobs come in the form of security guards, logisticians, truck drivers, ship operators, and even waiters in local restaurants that staff-up for customers coming off night shifts.

Prior to the establishment of PierPass in 2005, Port employment was limited to regular daytime shifts. Fortunately, just before the economy began to decline, PierPass was created, increasing port capacity and, as a result, employment opportunities.

Today, the San Pedro Ports operate 122 shifts – of which 57 are PierPass OffPeak gates – for cargo pickup and delivery each week.

PierPass is committed to ensuring the Ports remain a consistent source of good jobs for those in the San Pedro Bay area by maintaining and building capacity, and continuing to improve efficiency of the Ports.

WCMTOA announced it will postpone until August 1 its planned adjustment to the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach. The 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 TMF.

While rate increases are never desirable, it’s important to recognize the value gained through adequate funding of the PierPass OffPeak Program.

Recall six years ago, before PierPass existed to address daytime truck and cargo congestion at the San Pedro Bay ports. Heavy traffic plagued freeways, neighboring communities, and roads leading into ports. Long lines of trucks, cargo sitting for extended periods, and ship delays were commonplace.

Fortunately, we’ve come a long way since then. Over the past six years, PierPass OffPeak gates have grown to handle approximately 55 percent of all container traffic at the ports of Los Angeles and Long Beach, have accommodated close to 20 million truck transactions during OffPeak shifts, and eased congestion in city streets and nearby freeways during normal business hours.

The PierPass OffPeak program provides tremendous value and future growth potential to the goods movement industry, greatly increasing the capacity of America’s largest port complex without adding additional infrastructure. OffPeak gates help to minimize daytime traffic congestion, allow cargo to move faster at night on less crowded roads, and enables truck owners to deliver more loads through lower turn-times and twice the number of working hours in a day. The TMF funds the nighttime gates, which make these benefits possible.

As an industry-driven solution to port congestion, the PierPass OffPeak program was created as a response to government and cargo interests, and its success is only possible because of feedback from stakeholders across the industry.  PierPass continues to encourage dialog among industry stakeholders in order to identify industry-driven solutions that promote the efficient movement of cargo through the ports.

Today, the West Coast MTO Agreement (WCMTOA) announced it will raise the current Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach to $60 per TEU (twenty-foot equivalent unit) in order to sustain continued operation of PierPASS OffPeak gates.

This is the first increase in the TMF since 2006. Since then, labor costs have increased 31 percent. The terminals have operated the OffPeak shifts 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.

With fifty-five percent of cargo movements taking place during OffPeak hours, the program has become an important element of port operations.

A number of options were evaluated by marine terminal operators to cut the losses, including adjusting the TMF, decreasing the services offered, or instituting a fee on OffPeak cargo. Adjusting the rate was determined by the marine terminal operators to be the most effective and least disruptive way to reduce the losses.

Beginning in mid-2012, the TMF will be adjusted annually based on changes in Pacific Maritime Association maritime labor costs.

The rollout of the TMF adjustment is effective July 4, 2011. Read the press release for more details.