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PierPass August 2016 Newsletter

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Overall cargo volume at the Ports of Los Angeles and Long Beach rose slightly in July compared to June – up 5.6% in Long Beach and 1.8% in Los Angeles.

After reaching two-year lows in the second quarter, truck turn times rose in July. A couple factors were in play. The terminals were mostly closed on Monday July 4 and Tuesday July 5, leading to a backlog when they reopened on Wednesday July 6. Also, the supply of available chassis tightened in July, as both street dwell times and the number of out-of-service chassis rose.

PierPass monthly transaction data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of July 2016.

Average in-terminal turn time:
44.7 minutes day shift
47.6 minutes night shift

For comparison, the average in-terminal turn time in June was 39.6 minutes for the day shift and 42.7 minutes for the night shift.

In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors. For more information about turn times and how we measure them, please see our Q&A at http://goo.gl/PiOjBp.

Average daily moves per truck in July:
5 or more moves per day: 4%
4 moves per day: 10%
3 moves per day: 27%
2 moves per day: 38%
1 move per day: 21%

Gate moves during Peak and OffPeak shifts in July:
Total Peak gate moves: 365,135 (56%)
Total OffPeak gate moves: 286,161 (44%)

A gate move occurs when a container enters or leaves a marine terminal via the truck gates. Peak shifts are Monday through Friday, 8:00 a.m. to 5:00 p.m. OffPeak shifts are all other times and are considered exempt from the Traffic Mitigation Fee.

Note:
Most terminals were closed for the July 4 Independence Day holiday, and all terminals were closed for the ILWU “Bloody Thursday” holiday on July 5.
All terminals were closed for the OffPeak shift on July 14 for an ILWU Stop Work Meeting.

West Coast Terminals Shelve Chassis Fee but Affirm Right to Compensation for Services

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Dear OffPeak Users,

The West Coast MTO Agreement (WCMTOA) today issued the following press release:

West Coast Terminals Shelve Chassis Fee but Affirm Right to Compensation for Services

LONG BEACH, Calif., Aug. 23, 2016 – The West Coast MTO Agreement (WCMTOA) today announced it has shelved plans to introduce a chassis services fee, as individual marine terminals negotiate directly with chassis leasing companies over hosting agreements.

WCMTOA’s member terminals affirm their right to seek compensation for the costly services they provide to chassis leasing companies at the Ports of Los Angeles and Long Beach. It costs terminals more than $200,000 per acre per year to lease land from the ports, and the terminals each have many acres stacked with chassis. This land could otherwise generate income for terminals by letting them process more containers, and would also let them manage containers more efficiently. Terminals have also been covering the cost of ILWU labor needed to stack, unstack and move the chassis, and the cost of the personnel, hardware and software needed to provide chassis usage data to the leasing companies.

In June, after two years of providing chassis management and storage to the leasing companies without reimbursement, WCMTOA announced a chassis services fee applying to chassis owners that receive services from WCMTOA’s marine terminal members. Since then, negotiations between individual terminals and some of the leasing companies have moved forward.

The leasing companies on Aug. 9 filed a Petition for an Order to Show Cause with the Federal Maritime Commission, seeking to avoid paying for the services they receive. The FMC on Aug. 16 asked interested parties to submit their views or arguments related to the Petition by Aug. 26. While it has shelved plans for the fee, WCMTOA intends to vigorously defend its position in its response to the Petition. WCMTOA members strongly believe the chassis owners must be responsible for covering the land, labor and technology costs the terminals incur on their behalf.

The West Coast MTO Agreement is filed with the Federal Maritime Commission, and comprises the 13 marine terminal operators serving the Los Angeles and Long Beach ports.

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Terminals in Ports of Los Angeles and Long Beach Move Start of Chassis Rule to September 1

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LONG BEACH, Calif., Aug. 1, 2016 – The West Coast MTO Agreement (WCMTOA) has extended the implementation date of a new tariff rule for chassis services by one month until September 1. The rule applies to chassis owned by chassis leasing companies that receive services from WCMTOA’s marine terminal members at the Ports of Los Angeles and Long Beach.

The chassis system in the United States has been in flux for several years as shipping lines have moved away from providing the chassis (the truck trailer onto which containers are mounted) as part of their services. Since 2014, users in Los Angeles-Long Beach have arranged chassis directly with the leasing companies.

However, the terminals haven’t been compensated by the leasing companies for basic services provided such as storage space, stacking and unstacking the chassis, and electronic data interchange (which tells the chassis lessors who is using their chassis). Since the chassis leasing companies formed a “pool of pools” in early 2015, the terminals have been working with the leasing companies to address the compensation and services issues.

The new Rule 15 of WCMTOA’s Marine Terminal Schedule No. 1 describes the “On-Terminal Chassis Services” provided and establishes the “Chassis Services Fee.” The rule provides for a $5 fee each time a chassis enters or leaves the terminal, to cover the cost of services. The fee will be collected by PierPass on chassis with loaded or empty containers mounted, but not on bare chassis. MTO Schedule No. 1 is available at http://goo.gl/QihQ1u.

No fees will be charged for chassis that are owned directly by cargo owners or trucking companies, as these owners don’t require the services provided to leasing companies. Neither cargo owners or trucking companies need register their chassis under Rule 15.

Rule 15 was originally scheduled to take effect today, August 1. On Friday, PierPass informed the FMC that it was extending the start date to September 1, giving the leasing companies additional time to implement the change without impacting cargo flow in the ports.

The West Coast MTO Agreement is filed with the Federal Maritime Commission, and comprises the 13 marine terminal operators serving the Los Angeles and Long Beach ports.

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PierPass July 2016 Newsletter

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Fastest Turn Times in Two Years

In the second quarter of 2016, trucks were able to pick up and deliver containers at the Ports of Los Angeles and Long Beach more quickly than in any other quarter over the last two years, according to monthly data reported by marine terminals and compiled by PierPass Inc.

In both May and June, turn times fell below 40 minutes during the Peak shift and below 45 minutes during the OffPeak shift for the first time since the second quarter of 2014. Turn time measures how long it takes a truck to drop off or pick up a container at a marine terminal. The average turn times for the full quarter were 40.8 minutes (Peak) and 43.0 minutes (OffPeak), down from 55.3 minutes (Peak) and 58.4 minutes (OffPeak) during the fourth quarter of 2014.

PierPass monthly transaction data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of June 2016.

Average in-terminal turn time:
39.6 minutes day shift
42.7 minutes night shift

For comparison, the average in-terminal turn time in May was 39.2 minutes for the day shift and 41.1 minutes for the night shift.

In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors. For more information about turn times and how we measure them, please see our Q&A at http://goo.gl/PiOjBp.

Average daily moves per truck in June:
5 or more moves per day: 6%
4 moves per day: 11%
3 moves per day: 26%
2 moves per day: 37%
1 move per day: 20%

Gate moves during Peak and OffPeak shifts in June:
Total Peak gate moves: 412,910 (57%)
Total OffPeak gate moves: 310,841 (43%)

A gate move occurs when a container enters or leaves a marine terminal via the truck gates. Peak shifts are Monday through Friday, 8:00 a.m. to 5:00 p.m. OffPeak shifts are all other times and are considered exempt from the Traffic Mitigation Fee.

Note:
All terminals were closed for the OffPeak shift on June 2 for an ILWU Stop Work Meeting.

POLA and POLB Marine Terminal Gates Closed on Thursday, August 4, 2016 at 5 p.m.

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Dear Users of OffPeak Gates,

PierPass Inc. has been notified that the International Longshore and Warehouse Union (ILWU) will observe a special stop work meeting for union business on Thursday, August 4, 2016, starting at 5 p.m. As a result, no marine terminal gates at the Port of Los Angeles and the Port of Long Beach will operate between the hours of 5:00 p.m. on August 4 through 3:00 a.m. on August 5. There will be no OffPeak shift Thursday night August 4.

Please check with individual terminals for substitute or alternative gates.

This labor shutdown falls under Rule 5 of the Marine Terminal Operator Schedule No. 1, which is available at:

https://www.pierpass.org/wp-content/uploads/2016/07/8-8-16-MTO-Schedule.pdf

PierPass Inc.

Truck Turn Times in Q2 were Fastest in Two Years at Ports of Los Angeles and Long Beach

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LONG BEACH, Calif., July 13, 2016 – In the second quarter of 2016, trucks were able to pick up and deliver containers at the Ports of Los Angeles and Long Beach more quickly than in any other quarter over the last two years, according to monthly data reported by marine terminals and compiled by PierPass Inc.

In both May and June, turn times fell below 40 minutes during the Peak shift and below 45 minutes during the OffPeak shift for the first time since the second quarter of 2014. Turn time measures how long it takes a truck to drop off or pick up a container at a marine terminal. The average turn times for the full quarter were 40.8 minutes (Peak) and 43.0 minutes (OffPeak), down from 55.3 minutes (Peak) and 58.4 minutes(OffPeak) during the fourth quarter of 2014.

In order to increase cargo velocity, terminals have invested hundreds of millions of dollars in new automation technology and other infrastructure. They have also implemented new procedures to address challenges presented by the arrival of much larger new ships, the spread of vessel-sharing agreements and the transition of chassis ownership from shipping lines to leasing companies. Terminals have also increased their coordination with trucking companies to extend the use of free-flow or peel-off procedures for rapid delivery of large groups of containers.

More of the terminals have also moved to adopt appointment systems, to better spread cargo movement over the hours of operation and coordinate which areas of the yard are being worked to enable more efficient use of container-moving equipment. As of July 2016, seven of the 13 terminals are using appointment systems, with more expected to come online by the end of the year.

“Through investment, innovation and collaboration with other port stakeholders, the terminals have repeatedly demonstrated their ability to overcome operational challenges,” said PierPass President John Cushing. “This ability, combined with the capacity, flexibility and geographic advantages of Los Angeles and Long Beach, has maintained our position as the premier port complex in North America.”

“We are encouraged by the recent turn time results and appreciate the work that has been done to attain these gains,æ said Port of Los Angeles Executive Director Gene Seroka. “We look forward to partnering with stakeholders to obtain further reductions and additional supply chain efficiencies.”

During the second quarter of 2016, more than 850,000 containers were picked up or delivered on weeknights or Saturdays during the OffPeak shifts established by PierPass. Without OffPeak, those truck trips would take place during weekday daytime traffic, greatly increasing congestion on the roads and highways of nearby communities.

PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. Using a congestion pricing model, PierPass charges a Traffic Mitigation Fee on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The TMF also helps pay for the labor and other costs of operating the OffPeak shifts.

Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends.

For more information about turn times and how PierPass measures them, please see our Q&A at http://goo.gl/PiOjBp.

About PierPass
PierPass is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. PierPass launched the OffPeak program in 2005 to reduce cargo-related congestion on local streets and highways around the ports by establishing regular night and Saturday work shifts. Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends. About half of all port truck trips now take place during the OffPeak shifts. For more information, please see www.pierpass.org.

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Marine Terminal Operators at Ports of Los Angeles and Long Beach to Adjust TMF on August 8

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LONG BEACH, Calif., July 8, 2016 – The West Coast MTO Agreement (WCMTOA) today announced a 1.9 percent increase in the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach, scheduled to take effect on August 8, 2016. The increase will sustain continued operation of PierPass OffPeak gates amid labor cost increases.

Beginning August 8, the TMF will be increased to $70.49 per TEU (twenty-foot equivalent unit) or $140.98 per forty-foot container.

The adjustment falls under Rule 7 of WCMTOA’s Marine Terminal Schedule No. 1, which states, “Beginning in mid-2012, the Fee shall be adjusted annually to reflect increases in labor costs based on Pacific Maritime Association maritime labor cost figures.” The PMA negotiates and administers maritime labor agreements with the International Longshore and Warehouse Union (ILWU).

PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. OffPeak established regular night and Saturday work shifts to handle trucks delivering and picking up containers at the 13 container terminals in the two adjacent ports.

Using a congestion pricing model, PierPass charges a TMF on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The TMF also helps pay for the labor and other costs of operating the OffPeak shifts.

According to an analysis by maritime industry consultants SC Analytics, the costs incurred by the terminals to operate the OffPeak shifts in 2015 totaled $236.2 million. During the year, the terminals received $168.9 million from the Traffic Mitigation Fee, offsetting only part of the OffPeak program’s costs.

Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends. About half of all port truck trips now take place during the OffPeak shifts.

PierPass June 2016 Newsletter

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PierPass in May met with the Wilmington Chamber of Commerce to brief the group on the OffPeak program’s progress in reducing the number of trucks on neighborhood streets. Wilmington sits between the two primary truck corridors into the ports, the 110 freeway on the west and the 710 freeway on the east, and had been plagued by daytime truck congestion on its local roads before the 2005 start of OffPeak’s extended gates.

If your organization would like to learn more about PierPass, please let us know at info@pierpass.org.

PierPass Monthly Transaction Data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of May 2016.

Average in-terminal turn time:
39.2 minutes day shift
41.1 minutes night shift

For comparison, the average in-terminal turn time in April was 43.7 minutes for the day shift and 45.3 minutes for the night shift.

In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors. For more information about turn times and how we measure them, please see our Q&A at http://goo.gl/PiOjBp.

Average daily moves per truck in May:
5 or more moves per day: 5%
4 moves per day: 9%
3 moves per day: 25%
2 moves per day: 38%
1 move per day: 23%

Gate moves during Peak and OffPeak shifts in May:
Total Peak gate moves: 366,398 (56%)
Total OffPeak gate moves: 291,286 (44%)

A gate move occurs when a container enters or leaves a marine terminal via the truck gates. Peak shifts are Monday through Friday, 8:00 a.m. to 5:00 p.m. OffPeak shifts are all other times and are considered exempt from the Traffic Mitigation Fee.

Note:
Most terminals were closed for both the Peak and OffPeak shifts on May 30 for the Memorial Day holiday.

PierPass May 2016 Newsletter

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PierPass in April met with the Harbor City / Harbor Gateway Chamber of Commerce to provide an update on the OffPeak program. The group was encouraged that OffPeak has diverted more than 35 million truck trips out of peak daytime traffic since 2005, reducing congestion on roads and freeways near the ports and reducing air pollution.

In May, PierPass will update the Wilmington Chamber of Commerce on the program’s progress in reducing the number of trucks on neighborhood streets.

If your organization would like to hear more about PierPass, please let us know at info@pierpass.org.

PierPass Monthly Transaction Data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of April 2016.

Average in-terminal turn time:
43.7 minutes day shift
45.3 minutes night shift

For comparison, the average in-terminal turn time in March was 44.3 minutes for the day shift and 46.4 minutes for the night shift.

In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors. For more information about turn times and how we measure them, please see our Q&A at http://goo.gl/PiOjBp.

Average daily moves per truck in April:
5 or more moves per day: 3%
4 moves per day: 8%
3 moves per day: 21%
2 moves per day: 40%
1 move per day: 28%

Gate moves during Peak and OffPeak shifts in April:
Total Peak gate moves:  352,481 (57%)
Total OffPeak gate moves:  266,096 (43%)

A gate move occurs when a container enters or leaves a marine terminal via the truck gates. Peak shifts are Monday through Friday, 8:00 a.m. to 5:00 p.m. OffPeak shifts are all other times and are considered exempt from the Traffic Mitigation Fee.

Note:
All terminals were closed for the OffPeak shift on April 7 for an ILWU Stop Work Meeting.

PierPass April 2016 Newsletter

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PierPass Monthly Transaction Data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of March 2016.

In March, turn times for the OffPeak shift remained within two minutes of the Peak shift, as they have done consistently. The split between Peak and OffPeak cargo also remained near 50/50.

Average in-terminal turn time:
44.3 minutes day shift
46.4 minutes night shift

For comparison, the average in-terminal turn time in February was 46.3 minutes for the day shift and 48.6 minutes for the night shift.

In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors. For more information about turn times and how we measure them, please see our Q&A at http://goo.gl/PiOjBp.

Average daily moves per truck in March:
5 or more moves per day: 3%
4 moves per day: 6%
3 moves per day: 18%
2 moves per day: 40%
1 move per day: 33%

Gate moves during Peak and OffPeak shifts in March:
Total Peak gate moves:  332,742 (49%)
Total OffPeak gate moves:  348,175 (51%)

A gate move occurs when a container enters or leaves a marine terminal via the truck gates. Peak shifts are Monday through Friday, 8:00 a.m. to 5:00 p.m. OffPeak shifts are all other times and are considered exempt from the Traffic Mitigation Fee.

Note:
Many terminals were closed on for one or two shifts on Cesar Chavez’s Birthday Holiday.