As we come out of a terrible strike situation, with 9 of the 13 container terminals having been closed to receiving of export cargo and delivery of import cargo for over a week, we will be facing some very real operational challenges in order to get the cargo moving again. Marine terminal operators are committed to facilitating this effort.

Terminal operators are undertaking a series of efforts to help customers get caught up on cargo moves through the port. These efforts include:

• Flex-starting the gates one hour prior to the evening shift start to help get trucks in and out of the gates
• Adding additional labor to relieve gate operations for continuous receipt and delivery of trucks during breaks and lunch hours
• Adding extra OffPeak shifts

These changes will begin immediately and continue until the backlog of containers is addressed. Please check the PierPass web sites www.pierpass.org and www.pierpass-tmf.org for the current OffPeak Schedule.

WORKING TOGETHER TO AVOID CONGESTION

Terminals are currently uncongested. In the coming days, as waiting ships and trains arrive, we expect congestion to temporarily increase. As described above, the terminals are adding flex gates, additional labor and extra shifts to maximize throughput and quickly work through any backlog.

To minimize delays at the terminals and avoid trouble tickets, PierPass urges trucking companies and drivers to check the availability of import containers or the validity of export booking numbers before coming to the terminal. All terminals have web-based availability systems that allow dispatchers and cargo owners to double-check before prematurely sending a trucker to the terminal. They can also use eModal.com.

In addition, truckers can check gate conditions in real time through the live gate cams at https://www.pierpass.org/live/.

OFFPEAK NIGHT GATES GREATLY REDUCE CONGESTION

Some cargo interests have asked PierPass to temporarily suspend the Traffic Mitigation Fee (TMF) while the backlog is cleared. The terminal operators have evaluated and rejected the idea, which we believe could greatly increase congestion in the short term and risk undermining OffPeak’s long-term solution to port congestion.

The TMF supports the OffPeak night and Saturday shifts that ease the strain of port operation on local communities. OffPeak shifts handle an average of 75,000 truck trips in a typical week, or about 55% of container moves. If the OffPeak shifts were eliminated, most of these trips would take place in peak daytime traffic, causing heavy congestion and increasing air pollution.

The TMF, which is charged on daytime container moves, provides an incentive for cargo to move at night, and pays for most of the night and Saturday OffPeak gates. OffPeak helps to spread traffic across more hours, makes better use of valuable port assets, reduces the uncertainty of delivery times, improves turn time for trucks and drivers, and reduces traffic on local highways during commute hours.

The program has worked very effectively for over eight years, mitigating the congestion at the terminals and in and around neighborhoods and freeways with no city, state or federal subsidies. Since 2005, more than 21 million truck moves have taken place during OffPeak hours. In keeping days and nights open for trucks, our ports are more effective and productive.

# # #

LONG BEACH, Calif., June 12, 2012 – The West Coast MTO Agreement (WCMTOA) today announced a 2.5 percent increase in the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach, in order to address labor cost increases scheduled to take effect on July 1, 2012.

Beginning August 1, the TMF will be increased by $1.50 per TEU (twenty-foot equivalent unit) to $61.50 per twenty-foot container or $123 per forty-foot container. The current TMF rates are $60.00 and $120.00 respectively.

On August 1, 2011, the TMF increased for the first time since 2006. The $10 per TEU increase came after hourly labor costs increased more than 31 percent for the same period. At that time, WCMTOA announced that beginning in mid-2012 it would begin adjusting the TMF annually to address labor cost increases.

The Traffic Mitigation Fee helps pay for the night and Saturday marine terminal shifts created by the PierPass OffPeak program to relieve daytime congestion in and around the ports. It also provides a financial incentive to move cargo during less congested times. The TMF is charged for non-exempt containers moving during peak hours (Monday through Friday, 3 a.m. to 6 p.m.). Please refer to the web site www.pierpass-tmf.org for more information.

The terminals have operated the OffPeak gates at a loss since the program’s start in 2005, when they doubled the number of shifts per week, essentially spreading the same number of containers over twice the working hours. Cargo volume since 2005 has been essentially flat. The shortfall between TMF revenues and OffPeak gate costs was $55 million in 2011 and $52.3 million in 2010.

Before PierPass was created in 2005, the ports and nearby roads were gridlocked, ships were backed up in the harbor unable to unload, and cargo owners suffered long delays in receiving and shipping vital goods.

The program has been highly successful in its primary goal of easing congestion in and around the ports. Over the past seven years, PierPass OffPeak gates have grown to handle approximately 55 percent of all container traffic at the ports, accommodated more than 21 million truck transactions, and greatly eased congestion on city streets and nearby freeways during daytime business hours.

“The OffPeak program greatly increases the capacity of America’s largest port complex without requiring additional infrastructure,” said Bruce Wargo, president of PierPass, the not-for-profit company that runs the OffPeak program. “The program increases the already tremendous competitive advantage held by the Los Angeles / Long Beach port complex, which has the most concentrated set of port assets of any port in North America, has a workforce that’s ready, available and flexible, and whose Clean Trucks Program helped replace thousands of dirty trucks with the latest, cleanest models available.”

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.