Category Archives: News

TMF at Ports of Los Angeles and Long Beach to Increase 4.2% on August 1

Posted on by

LONG BEACH, Calif., June 30, 2020—The West Coast MTO Agreement (WCMTOA) today announced that on August 1, 2020, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 4.2 percent. The adjustment matches the combined 4.2 percent increase in longshore wage and assessment rates that take effect in early July.

Beginning August 1, the TMF will be $33.47 per TEU (twenty-foot equivalent unit) or $66.94 for all other sizes of container. The TMF is charged on non-exempt containers. Containers exempt from the TMF include empty containers; 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; and transshipment cargo. Empty chassis and bobtail trucks are also exempt.

The OffPeak program provides regularly scheduled night or Saturday shifts to handle trucks delivering and picking up containers at the 12 container terminals in the two adjacent ports. PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion and air pollution on local streets and highways around the Los Angeles and Long Beach ports. Nearly half of all port truck trips now take place during the off-peak shifts. The container terminal operators mitigate truck traffic at their gates with appointment systems that spread truck trips out over the hours of operation.

The TMF helps offset the cost of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

According to an analysis by maritime industry consultants SC Analytics, the net costs incurred by the terminals to operate the off-peak shifts in 2019 totaled $262 million. During that year, the terminals received $223 million from the TMF, offsetting about 85 percent of the OffPeak program’s costs.

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. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission, and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports.

One Year In, “PierPass 2.0” Smooths Truck Traffic at Los Angeles & Long Beach Ports

Posted on by

One Year In, “PierPass 2.0” Smooths Truck Traffic at Los Angeles & Long Beach Ports

Ample Appointments Available

LONG BEACH, Calif., Dec. 2, 2019—In the year since PierPass launched an appointments-based system for trucks picking up containers at the Ports of Los Angeles and Long Beach, long late-afternoon queues have been eliminated, and ample appointment opportunities are available for each container. On average, port terminals are offering about a third more appointment slots than there are containers to be picked up.

Terminals have also been working with the trucking community and other stakeholders to add new types of appointment-based services to help truckers achieve greater efficiency, taking advantage of the scalability and flexibility they gained by switching to an appointment-based system.

“Terminals continue offering at least two peak shift and two off-peak shift appointments for each container prior to free time expiration, providing multiple options for each pickup,” said John Cushing, President and CEO of PierPass. “Over the past year, many terminals have also introduced new services. All of this gives the cargo community an enhanced traffic mitigation system, which is running smoothly one year in.”

The OffPeak program was restructured in November 2018. The revised program, informally called “PierPass 2.0,” reduces traffic congestion by spreading cargo movement across two shifts, using appointments rather than the daytime-only Traffic Mitigation Fee (TMF) used in the original OffPeak program that started in 2005. From July 2005 through October 2019, OffPeak has diverted 46.7 million truck trips from Los Angeles weekday daytime traffic.

The revised OffPeak program has achieved the major objectives of the overhaul, including eliminating the long truck queues that previously formed in late afternoons as trucks waited outside the terminals until 6:00 p.m. to avoid the TMF. All 12 terminals report that the late-afternoon queues outside their gates have been eliminated.

Appointments for Exports and Empties

Under the common business rules of the revised OffPeak program, all terminals provide appointments for picking up import containers. Over the past year, many terminals have also begun offering appointments for dropping off export and empty containers. These services make it easier to arrange dual transactions, with a single truck trip dropping off one container and picking up another one.

Of the 12 terminals, eight now offer appointments for exports and for empties.

“One of the advantages we expected from shifting to an appointments-based system was increased flexibility, allowing terminals to continue innovating to improve efficiency and meet evolving market needs,” Cushing said. “We are very pleased and encouraged to see this expectation being achieved.”

Same Day Canceling and Rebooking Capability

In another operational improvement, most terminals are now allowing same-day canceling and rebooking of appointments if an appointment is available. Terminals were able to make this enhancement through software modifications.

Also, one terminal has begun allowing trucking companies to make appointments for picking up containers several days before the ship docks, allowing truckers to better plan their workloads.

“The new appointment-based PierPass system is working, and we are encouraged that the terminals are responding to our recommendations for additional improvements to their appointment systems,” said Weston LaBar, CEO of the Harbor Trucking Association. “We continue working with PierPass and the terminals to make the container pickup and delivery process faster and smoother for truckers and their customers.”

By providing additional shifts during off-peak hours, PierPass has allowed the Ports of Los Angeles and Long Beach to make better use of their infrastructure and investments, allowing cargo volume to grow without negatively impacting traffic conditions.

Prior to the creation of PierPass in 2005, the two ports were struggling to handle cargo volume during the five existing shifts per week, causing severe traffic congestion. Significant capacity remains during the four additional shifts terminals are currently providing per week.

Appointments Remain Ample, No-Show Rate Holds Steady

During the third calendar quarter of 2019, a weighted average of 30% of available daytime appointments and 41% of available nighttime appointments went unused. This indicates that, on an aggregate basis, more than enough appointment slots are being made available by terminals.

When the program began last year, the percentage of no-shows (when the trucker fails to appear for an appointment) averaged between the mid-20s and the low-30s. For both of the past two quarters, no-shows were down to an average of 14% of peak-hour appointments and 15% of off-peak appointments, as terminals continued meetings and follow-up with trucking companies that repeatedly miss their appointments.

More information about the revised OffPeak program is available at https://www.pierpass.org/about/offpeak-2-0/. PierPass is the agent of the West Coast MTO Agreement (WCMTOA), a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach.

PierPass Posts “2.0” Update Results

Posted on by

One Third of Appointments Unused at LA/Long Beach Terminals Under Revised OffPeak Program

LONG BEACH, Calif., July 25, 2019—More than one third of available appointments for picking up or delivering cargo at the Ports of Los Angeles and Long Beach go unused, leaving cargo owners with many available choices of appointment slots, according to terminal data newly compiled by PierPass Inc.

The appointment systems are the core of the revised OffPeak program—informally called “PierPass 2.0” — for mitigating traffic congestion at the largest container port complex in the U.S. Second-quarter 2019 data from the 12 container terminals at the two adjacent ports shows that the appointment systems offer significant flexibility and availability for cargo owners. Terminals also report that they no longer have lines of trucks queuing outside their gates in late afternoons.

During weekday daytime shifts at the terminals, a weighted average from the 12 terminals shows that 64% of appointments were used, leaving 36% of available slots unused. The same data shows that utilization was lower during OffPeak shifts (weeknights or Saturday), when 55% of appointments were used and 45% left unused. Utilization rates at individual terminals varied reflecting differences in their volumes and operational models.

“Terminals continue to offer two appointment opportunities during the peak shifts and two appointment opportunities during the OffPeak shifts prior to the last free day for each container,” said John Cushing, president of PierPass, which manages the OffPeak program. “The large number of unused appointment slots shows that the system has substantial capacity to handle additional growth and offers significant flexibility in appointment times.”

The revised OffPeak program has succeeded in achieving the goals of the overhaul launched last November. These include providing a scalable technology with appointment systems and reducing afternoon truck bunching. Trucking companies had asked PierPass to address the buildup of trucks outside the terminals between 3:00 p.m. and 6:00 p.m. The trucks had waited for the start of the OffPeak shift at 6:00 p.m. to avoid the Traffic Mitigation Fee (TMF) previously charged only on peak-hour cargo moves.

Under the revised OffPeak program, a lower, flat TMF is now charged on both day and night shifts, removing the incentive for trucks arriving late in the afternoon to wait until 6:00 p.m. to take their cargo. The new appointment systems mitigate traffic flow to scheduled appointment windows instead of just between the two shifts.

“The late-afternoon queuing at the terminals has been eliminated,” Mr. Cushing said.

Terminals continue to caution trucking companies against waiting until the last free day to try to pick up a load. Those doing so might not be able to get an appointment on the last free day (the last day to pick up a container without incurring demurrage charges). Terminals recommend that users select from the appointment opportunities presented as soon as they are made available.

Terminals have been conducting outreach to work with truckers on using the appointment systems effectively. This has included ongoing meetings and follow-up with trucking companies that repeatedly miss their appointments.

At the start of the program, the percentage of booked appointments when the trucker failed to show up averaged between the mid-20s and the low-30s. Ports-wide in the second quarter, the average of no-shows has dropped to 14% during the first shift and 15% during OffPeak shifts.

In 2018, it cost terminals $288 million to operate night and Saturday shifts under the OffPeak program. The program collected $216.5 million in Traffic Mitigation Fees to partially offset the added costs.

More information about the revised OffPeak program is available at https://www.pierpass.org/about/offpeak-2-0/. PierPass is the agent of the West Coast MTO Agreement (WCMTOA), a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach.

– end –

TMF at Ports of LA and Long Beach to Increase 1.9% on August 1, 2019

Posted on by

LONG BEACH, Calif., June 28, 2019– The West Coast MTO Agreement (WCMTOA) today announced that on August 1, 2019, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 1.9 percent. The adjustment matches the combined 1.9 percent increase in longshore wage and assessment rates that take effect June 29.

Beginning August 1, the TMF will be $32.12 per TEU (twenty-foot equivalent unit) or $64.24 per forty-foot container. The TMF is charged on non-exempt containers. Containers exempt from the TMF include empty containers; 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; and transshipment cargo. Empty chassis and bobtail trucks are also exempt.

The OffPeak program provides regularly scheduled night or Saturday shifts to handle trucks delivering and picking up containers at the 12 container terminals in the two adjacent ports. PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion and air pollution on local streets and highways around the Los Angeles and Long Beach ports. Nearly half of all port truck trips now take place during the off-peak shifts. The container terminal operators mitigate truck traffic at their gates with appointment systems.

The TMF helps offset the cost of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

According to an analysis by maritime industry consultants SC Analytics, the net costs incurred by the terminals to operate the off-peak shifts in 2018 totaled $288 million. During that year, the terminals received $217.5 million from the TMF, offsetting about 76 percent of the OffPeak program’s costs.

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. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission, and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports. For more information, please see www.pierpass.org.

FMC Clears PierPass to Start Revised OffPeak Program on Nov. 19

Posted on by

LONG BEACH, Calif., Nov 15, 2018—The Federal Maritime Commission has cleared PierPass to launch its revised OffPeak program of extended gate hours at the Ports of Los Angeles and Long Beach beginning Monday, Nov. 19.

The revised OffPeak program, informally called PierPass 2.0, replaces the original OffPeak congestion-pricing model with a system using appointments to mitigate traffic. It uses a reduced Traffic Mitigation Fee (TMF) across all hours of terminal operation to help offset the cost of operating extended gates.

Cargo owners moving containers into and out of the ports by truck gate and who aren’t already registered with PierPass can do so at https://www.pierpass-tmf.org/.

As previously announced, the current TMF of $72.09 per TEU (twenty-foot equivalent unit) will be reduced to $31.52 per TEU or $63.04 for all other size containers. The TMF will be charged during all shifts on all days.

PierPass set up the OffPeak program in 2005 to relieve severe congestion in and around the ports. It established new night and Saturday shifts during which trucks can move cargo containers to and from the terminals. The new changes to the OffPeak program are being made in response to requests from port users, who seek increased flexibility and a reduction in the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts.

More information about the revised OffPeak program is available at https://www.pierpass.org/about/offpeak-2-0/. PierPass is the agent of the West Coast MTO Agreement (WCMTOA), a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach.

OffPeak 2.0 Begins Next Monday, Nov. 19

Posted on by

In one week, there will be significant changes to the OffPeak program.

When:  Monday, Nov. 19, 2018 subject to the conclusion of applicable Federal Maritime Commission procedures.

The Traffic Mitigation Fee (TMF) rate will be: $31.52 per 20-foot container, and $63.04 for all other sizes of containers.

The TMF will be applicable on all shifts, all days.

Registration: If not already registered in PierPass, register to pay the TMF at www.pierpass-tmf.org.

Payments: Pay the TMF at the same place payments are currently paid, at www.pierpass-tmf.org.

Exempt from the TMF will be:

  • Empty containers
  • Rail intermodal containers
  • Transshipped containers (cargo that arrives at the Port of Los Angeles or Long Beach on one vessel and leaves
    a second vessel without entering U.S. commerce)
  • Domestic cargo
  • Bare chassis

Appointments are required for all import containers.

Appointments are to be made with the terminal using their own terminal appointment system
See http://wcmtoa.org/appointment-systems/.

Common business rules:
As per WCMTOA Marine Terminal Schedule No. 1 and to include (1) two hour appointment windows and (2) the last appointment times of the day will be 3:30 p.m. on the first shift and 1:30 a.m. on the second shift.

FAQs: www.pierpass.org/wp-content/uploads/2018/10/QA-on-New-OffPeak-Program_10-11-18.pdf.

MTO contacts: www.wcmtoa.org/terminals/contacts/.

Revised PierPass OffPeak Start Expected Nov. 19 at Ports of Los Angeles, Long Beach

Posted on by

The members of the West Coast MTO Agreement (WCMTOA) today said the revised OffPeak program for providing extended gate hours at the Ports of Los Angeles and Long Beach—informally known as PierPass 2.0—is expected to start on Nov. 19, subject to the conclusion of applicable Federal Maritime Commission procedures.

In April, PierPass announced it will overhaul the model used by its OffPeak program for truck traffic mitigation at the two adjacent ports, replacing the current congestion-pricing model with an appointment-based system that uses a single flat fee on both daytime and nighttime container moves.

For most port users, the new system won’t require new procedures, but rather an adjustment to current procedures. Most companies moving containers through the ports are already registered with PierPass to claim containers moved during Peak (weekday daytime) hours. Under the revised system, they will claim containers moved at any hour.

Because nine of the 12 terminals at the two adjacent ports already use appointment systems, most trucking firms serving the ports are already using these systems. The remaining three terminals, all operated by SSA Marine, are planning to launch their own appointment systems in advance of the implementation. As part of the program update, the terminals have also agreed on common appointment windows and common last appointment times for each shift. As the revised program moves forward, the terminals will consider further common rules and processes to enhance truck efficiency at the ports.

Cargo owners moving containers into and out of the ports by truck gate and who aren’t already registered with PierPass can do so at https://www.pierpass-tmf.org/.

As previously announced, the current Traffic Mitigation Fee of $72.09 per TEU (twenty-foot equivalent unit) will be replaced by a new flat fee of $31.52 per TEU; the rate for all other size containers will be a flat fee of $63.04. The TMF charged only on Peak cargo moves will be replaced by a fee that is constant across all hours of operation. Other than that change, the same types of cargo will pay the fee.

The changes to the OffPeak program are being made in response to requests from port users, who seek increased flexibility and a reduction in the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts.

A Q&A about the revised OffPeak program is available at https://www.pierpass.org/wp-content/uploads/2018/10/QA-on-New-OffPeak-Program_10-11-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach. For more information and to track continuing developments, please go to https://www.pierpass.org/about/extended-gates-review-process/.

– end –

Revised PierPass OffPeak System Start Expected in Fourth Quarter

Posted on by

LONG BEACH, Calif., June 26, 2018—The members of the West Coast MTO Agreement (WCMTOA) today said the revised OffPeak program for providing extended gate hours—informally known as PierPass 2.0—is expected to start in the fourth quarter of this year.

WCMTOA members—the 12 marine terminal operators at the Ports of Los Angeles and Long Beach—met on June 21 to address reporting requirements for the amendment to Marine Terminal Schedule No. 1, the document on file with the Federal Maritime Commission (FMC) under which WCMTOA operates.

In April, PierPass announced it will overhaul the system used by the OffPeak program for truck traffic mitigation at the two adjacent ports, replacing the current congestion pricing model with an appointment-based system that uses a single TEU-based flat fee on both daytime and nighttime container moves.

On May 24, the FMC voted to issue a Request for Additional Information about the proposed amendment. WCMTOA members are currently working to gather the requested information. Once WCMTOA submits its response, the FMC will have another 45 days to analyze the amendment. The completion of this process revises WCMTOA’s projected program launch date, originally expected in August, to the fourth quarter of 2018.

A Q&A about the revised OffPeak program is available at www.pierpass.org/wp-content/uploads/2018/04/QA-on-New-OffPeak-Program_4-16-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. For more information and to track continuing developments, please go to https://www.pierpass.org/about/extended-gates-review-process/.

PierPass Members Add Common Business Rules to Terminal Appointment Systems

Posted on by

LONG BEACH, Calif., April 30, 2018—The members of the West Coast MTO Agreement (WCMTOA)—the 12 marine terminal operators at the Ports of Los Angeles and Long Beach—have agreed to add common business rules for the appointment systems that will become part of the OffPeak program later this year. Subject to regulatory approval, the revised OffPeak program, which is administered by PierPass, is expected to begin in August.

The terminals agreed to add the common business rules—operational procedures that all terminals will follow—in response to requests from trucking companies and other stakeholders.

The new common business rules include an appointment window—the time span between the earliest and latest times a truck can arrive for an appointment, including grace periods—of two hours for all appointments. In addition, all terminals agreed that their last appointment times of the day will be 3:30 p.m. on the first shift and 1:30 a.m. on the second shift. The new business rules will take effect when the new program begins, and are expected to increase efficiencies for users when planning appointments at more than one terminal.

PierPass also clarified that the new system, which some have referred to as “PierPass 2.0,” won’t require appointments for individual import containers being picked up from peel-off piles. Trucking companies and cargo owners will continue to arrange for a single time window to pick up entire blocks of containers going to the same company or destination from a single container terminal.

Earlier this month, PierPass announced it will overhaul the system used by the OffPeak program for truck traffic mitigation at the two adjacent ports, replacing the current congestion pricing model with an appointment-based system that uses a single TEU-based flat fee on both daytime and nighttime container moves. The change has been welcomed by port leadership and by trucking industry associations as a way to improve flexibility and reduce the bunching up of trucks in late afternoons.

PierPass is scheduling a combined meeting of the PierPass Advisory Committee and Extended Gates Subcommittee in October. This will provide an opportunity for stakeholders to provide feedback and suggestions after implementation of the new system.

A Q&A about the revised OffPeak program is available at www.pierpass.org/wp-content/uploads/2018/04/QA-on-New-OffPeak-Program_4-16-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. For more information and to track continuing developments, please go to www.pierpass.org.

– end –

PierPass to Adopt Appointment System and Flat Fee for OffPeak Program

Posted on by

LONG BEACH, Calif., April 16, 2018—PierPass will overhaul the model used by its OffPeak program for truck traffic mitigation at the Ports of Los Angeles and Long Beach, replacing the current congestion pricing model with an appointment-based system that uses a single flat fee on both daytime and nighttime container moves.

The members of the West Coast MTO Agreement (WCMTOA)—the 12 marine terminal operators at the two adjacent ports—reached the decision after an 18-month process of consultation with industry stakeholders, and an analysis and survey by industry consultants.

Port users have expressed a desire for changes to increase flexibility and reduce the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts. Subject to regulatory approval, the revised OffPeak program is expected to begin in August.

“The industry has been demanding ‘PierPass 2.0,’ and we are responding,” said PierPass President John Cushing. “The original OffPeak program was an innovative and highly effective solution to the challenges we faced in 2005. But it was fairly inflexible, whereas an appointment-based model is scalable and can evolve to meet changing industry needs, technology and practices.”

Under the current program, OffPeak charges a Traffic Mitigation Fee (TMF) on weekday daytime cargo moves to incentivize cargo owners to use OffPeak shifts on nights and Saturdays. The revised OffPeak program will replace this two-tier fee structure with a single flat TMF during both shifts, and use appointments to spread traffic across the two shifts.

Applying the TMF to both day and night cargo will allow a reduction of more than 55 percent in the TMF while still providing funding to operate extended gates. The current TMF of $72.09 per TEU (twenty-foot equivalent unit) will be replaced by a new flat fee of $31.52 per TEU; the rate for all other container sizes will be a flat fee of $63.04.

“The Port of Long Beach is pleased with the progress PierPass has made in working with industry stakeholders to improve night gate operations in our terminals,” said Port of Long Beach Executive Director Mario Cordero. “As ships are getting bigger and volumes increase, efficient gate management is critical to our ability to move cargo in a reliable, predictable and expedient manner.”

“I’m pleased and encouraged that PierPass members are taking a significant step forward to improve efficiencies at the San Pedro Bay port complex,” said Port of Los Angeles Executive Director Gene Seroka. “We, as well as the trucking community and all of our stakeholders, look forward to increased cargo velocity and customer responsiveness at Port facilities.”

The process of reviewing OffPeak alternatives has included a series of meetings beginning with an October 2016 workshop where WCMTOA met with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, elected officials, government representatives, port authorities and other supply chain stakeholders. After a series of subsequent stakeholder meetings to delve into potential alternative models, PierPass retained industry consultants to conduct a detailed analysis. The consultants’ findings were presented and discussed at a follow-up industry workshop on March 8, 2018. WCMTOA members then worked through the remaining issues to arrive at the final plan for the revised OffPeak program.

“The California Trucking Association appreciates the proposal put forth by PierPass regarding its re-structuring of the TMF,” said Alex Cherin, Executive Director of the CTA Intermodal Conference. “This is the culmination of many collaborative discussions between the marine terminal operators and trucking communities over the last few years, and we look forward to supporting these efforts.”

“The HTA has worked hard with our marine terminal colleagues to create a more efficient and environmentally sustainable port complex,” said Weston LaBar, CEO of the Harbor Trucking Association. “This new direction for PierPass is another example of cross-industry collaboration and is a giant step in the right direction. It shows that the San Pedro Bay Port Complex will continue to be the preferred gateway for moving America’s cargo.”

A Q&A about the revised OffPeak program is available at www.pierpass.org/wp-content/uploads/2018/04/QA-on-New-OffPeak-Program_4-16-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. For more information and to track continuing developments, please go to www.pierpass.org.

###