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

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

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

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

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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PierPass Briefs Washington Regulators and Shipper Associations

Dear Users of OffPeak Gates,

PierPass Inc. issued the following press release this morning:

PierPass Briefs Washington Regulators and Shipper Associations

LONG BEACH, Calif., November 23, 2015—PierPass Inc. and marine terminal operator leaders conducted a series of meetings in Washington, DC last week with the Federal Maritime Commission chairman, commissioners and staff. The meetings reviewed how conditions at the marine terminals in the Ports of Los Angeles and Long Beach have rebounded strongly since the congestion crisis a year ago.

The 13 container terminals continue to provide extensive availability of service to cargo owners moving their containers through the two adjacent ports. The terminals provided an average of 82 hours per week of truck gates in August, 84 hours per week in September, and 82 hours per week in October.

These hours of service include daytime gates Monday through Friday; four to five OffPeak gates on nights and Saturdays; flex gates, where terminals hire extra labor to open before the start of a regular shift or remain open during contractually-mandated meal breaks; and ad-hoc gates, where terminals open up for an extra night or weekend to accommodate customer needs.

Improved Cargo Velocity

The time it takes for terminals to retrieve and load import containers onto trucks or receive export containers from trucks is down sharply from its peak a year ago. Cargo is moving through the Ports of Los Angeles and Long Beach at velocities not seen since the first half of 2014, before the congestion experienced during the second half of 2014.

For trucks picking up or dropping off containers at port terminals, in-terminal turn time in October averaged 48.3 minutes on OffPeak shifts, the lowest it has been since August 2014. Daytime in-terminal turn time in October averaged 46.3 minutes, the second-lowest it has been since June 2014. That is a significant drop from late 2014 through early 2015, when daytime and OffPeak turn times exceeded 60 minutes in some months.

Washington Delegation Reviews OffPeak Costs with FMC

The delegation from PierPass and terminal operators also used the meetings with the FMC as an opportunity to review the finances of PierPass Inc. and the OffPeak program. PierPass recently published an in-depth review of the methodology it uses to calculate the cost for the terminals to operate the OffPeak gates. The review is available at https://www.pierpass.org/wp-content/uploads/2015/11/PierPass-Financial-Overview_10-21-2015.pdf. The document also reviews the methodology used to audit PierPass Inc.

Meetings with Shippers Associations

While in Washington, the delegation provided similar updates to trade associations representing cargo owners, including the Agriculture Transportation Coalition, the National Retail Federation, the Retail Industry Leaders Association and the Waterfront Coalition.

“These shipper meetings continue the extensive and ongoing outreach that the marine terminal operators and PierPass conduct with industry partners,” said PierPass Inc. President John Cushing.

Among other activities, the terminal operators and PierPass participate in the Supply Chain Optimization initiative of the two ports, working with cargo owners, trucking companies, various associations and the ports to share information and initiate programs.

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. To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4. For additional information, please see www.pierpass.org.

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California Political and Environmental Leaders Laud PierPass OffPeak Program for Decade of Impact

Program Diverts 34 Million Truck Trips From Los Angeles / Long Beach Peak Traffic Since 2005

LONG BEACH, Calif., July 23, 2015 – PierPass Inc. today celebrated the 10-year anniversary of the OffPeak Program, which established regular night and Saturday work shifts at the Port of Los Angeles and Port of Long Beach, and pledged continuing efforts to minimize cargo-related congestion in and around the ports. Since July 23, 2005, OffPeak has taken 34 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends.

PierPass created OffPeak as a private sector solution to what was then a critical public problem: after a rapid rise in cargo volume in the early 2000s, drayage trucks were causing severe congestion on the roads and highways and in the neighborhoods around the ports, while thousands of idling trucks caught in this traffic every day added to air pollution. The ports came under strong community and political pressure to find a solution.

PierPass effectively doubles the capacity of the nation’s largest and busiest port complex without taxpayer money and without waiting for new infrastructure to be built. It enables the economic benefits of cargo transportation – which provides nearly 700,000 Southern California jobs and generates more than $10 billion in state and local taxes annually – while greatly mitigating the traffic and air quality impacts of the ports’ operations. OffPeak now regularly diverts about half of the roughly 150,000 weekly truck trips to nights and Saturdays.

“Heavy-duty trucks are the largest source of smog-forming nitrogen oxide emissions in our region,” explains South Coast Air Quality Management District Executive Officer Barry Wallerstein. “By decreasing the time that trucks are idling and stuck in traffic, the OffPeak program has helped to significantly improve air quality.”

The mayors of Los Angeles and Long Beach hailed the OffPeak program’s achievements on its 10th anniversary.

“The OffPeak program has facilitated the continued growth of the Port of Long Beach,” said Long Beach Mayor Robert Garcia, “while lowering the adverse environmental impacts of their operations.”

“For the last decade, PierPass has instituted innovative and creative problem solving for the goods movement industry in Southern California,” said Los Angeles Mayor Eric Garcetti. “Their program has helped to bring jobs to America’s #1 port, while helping us reduce our environmental footprint in the Harbor area.”

Congressman Alan Lowenthal, who introduced legislation to address truck congestion at the ports when he was an Assemblyman in the California Legislature, said, “Given the success of OffPeak, many don’t remember how bad it was at the ports in the years before the program’s creation. The OffPeak program really helped reduce the stress on port-adjacent communities and traffic on key freeways.”

Using a congestion pricing model, PierPass charges a Traffic Mitigation Fee (TMF) on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The TMF also helps pay for the cost of operating the OffPeak shifts, which upon introduction in 2005 roughly doubled the labor cost to handle the same amount of cargo. Container volume rose only 6% between 2005 and 2014.

On an average OffPeak weeknight, 13,500 trucks visit the marine container terminals at the Los Angeles and Long Beach ports. If all of these trucks were lined up bumper-to-bumper, they would form a line 145 miles long, stretching halfway to Las Vegas. Without the OffPeak program, this cargo would be crammed into a single day shift, doubling daytime volumes and once again causing severe congestion.

“We are proud of what we have accomplished with the OffPeak program, but we aren’t resting on our accomplishments,” said PierPass President John Cushing. “PierPass and the terminals are constantly working with our partners at the ports and others in the supply chain to improve the velocity of freight and reduce the environmental impact of port operations.”

About PierPass
PierPass is a not-for-profit company created by marine terminal operators at the Ports of Los Angeles and Long Beach in 2005 to address multi-terminal issues such as congestion, air quality and security. To learn what it takes for a truck to drop off or pick up a container at a marine terminal, see http://youtu.be/P9IJN1yIIJ4. For additional information, please see www.pierpass.org.

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PierPass Customer Service Numbers:
877-863-3310 (from inside the United States)
1-973-355-3575 (from outside the United States)

PierPass March News and Updates

PierPass Monthly Transaction Data  

Each month we provide a summary of the previous month’s 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 February 2015.

Average in-terminal turn time in February 2015:
49.6 minutes day shift
53.0 minutes night shift

For comparison, the average in-terminal turn time in January 2015 was 60.9 minutes for the day shift and 55.8 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 for frequent callers* in February:
5 or moves per day: 3%
4 moves per day: 7%
3 moves per day: 22%
2 moves per day: 43%
1 move per day: 25%

*The ports define frequent callers as trucks making one or more moves per weekday. Average moves per day by frequent callers tells us how many moves a truck can make if it is working every day. In February, 10% of frequent callers made four or more moves per day.

Gate moves during Peak and OffPeak/exempt shifts:
Total Peak gate moves: 242,181 (58%)
Total OffPeak/Exempt gate moves: 175,514 (42%)

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 Monday through Friday, 6:00 p.m. to 3:00 a.m., and Saturday 8:00 a.m. to 5:00 p.m. Saturday night and Sunday shifts, which are not regularly scheduled, are considered “exempt.”

Note: Many terminals were closed for one or both shifts on Feb. 12 for the Lincoln’s Birthday holiday and on Feb. 15 for the Washington’s Birthday holiday.

To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4.

With Labor and Chassis Issues Addressed, PierPass Member Terminals Increase Throughput 46% in First Half of March

LONG BEACH, Calif., March 18, 2015 —In the wake of a tentative labor deal announced Feb. 20 and the formation of a port-wide chassis pool on March 1, marine terminals at the Port of Los Angeles and Port of Long Beach moved 46% more cargo containers by truck during the first half of March compared with the same period in February, PierPass Inc. said today.

From March 2 through March 15, nearly 303,000 import and export containers moved by truck into or out of the terminals, compared to nearly 207,000 from Feb. 2 through Feb. 15, according to gate transaction data collected by PierPass. These include containers moved during day shifts and the OffPeak shifts managed by PierPass on nights and Saturdays. The OffPeak program diverts about half of port truck trips out of Monday-through-Friday daytime traffic while roughly doubling the capacity of the Los Angeles and Long Beach ports.

According to the Marine Exchange of Southern California, there were 30 ships waiting to be unloaded at the Los Angeles and Long Beach ports on Monday March 16, down from 36 on Feb. 26.

“The terminals are intensely focused on returning to normal operations as quickly as possible,” said John Cushing, president of PierPass, which represents the 13 container terminals at the two adjacent ports. “While much work remains to be done, we can report progress in accelerating cargo movement by mid- March.”

PierPass today also reported some progress in reducing transaction times for trucks at the terminals. Average truck turn times dropped during the month of February (most of which fell before the Feb. 20 labor agreement) compared with January. It took trucks an average of 49.6 minutes to complete one transaction (picking up or delivering a container) on the Peak (weekday daytime) shift in February, down from 60.9 minutes in January. On OffPeak shifts, turn times in February averaged 53 minutes, down from 55.8 minutes in January.

In another move to reduce the cargo backlog, two terminals have leased additional port-owned land in order to accept empty containers and make more room for imports and exports. A third terminal has leased additional land to where it is bringing loaded containers mounted on chassis ready for truckers to pick up.

Terminal operators continue to work with trucking companies and cargo owners to increase the use of free-flow, sometimes known as peel-off, a practice PierPass has promoted to reduce truck waiting times. Free-flow enables bulk delivery of large groups of containers destined for the same location, typically to a single cargo owner. The terminals pre-stage the containers in a separate stack. The cargo owner then sends a stream of trucks into the terminal and each truck takes the next container in the stack.

“We have been very proactive with different terminal efficiency tools that include our appointment system and peel-off piles,” said Rickey Childs, head of operations for Eagle Marine Services. “We continue to work with the trucking community for increased OffPeak utilization, especially during the second half of the shift when there is minimal truck activity at the gates.”

On March 1, three of the largest chassis leasing companies at the Los Angeles and Long Beach ports formed a gray chassis “pool of pools” intended to solve the chassis supply disruption that emerged last year after shipping lines sold their chassis to private leasing companies. The new system makes chassis interchangeable for truckers and terminals. The three leasing companies control about 100,000 chassis in Southern California.

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PierPass February News and Updates

Overview

On Friday February 20, the Pacific Maritime Association and the International Longshore and Warehouse Union announced a tentative agreement on a new five-year contract covering workers at all 29 West Coast ports. The agreement, which is subject to ratification by both parties, is expected to allow the terminal operators at the Port of Los Angeles and Port of Long Beach to resume fully staffed operations and reduce the congestion that spiked during the nine-month labor negotiations.

January truck gate statistics at the two ports reflected high levels of congestion.

PierPass Monthly Transaction Data

Average in-terminal turn time in January 2015:

  • 60.9 minutes day shift
  • 55.8 minutes night shift

For comparison, the average in-terminal turn time in December 2014 was 55.9 minutes for the day shift and 58.4 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 for frequent callers* in January:

  • 5 or moves per day: 4%
  • 4 moves per day: 10%
  • 3 moves per day: 27%
  • 2 moves per day: 38%
  • 1 move per day: 21%

*The ports define frequent callers as trucks making one or more moves per weekday. Average moves per day by frequent callers tells us how many moves a truck can make if it is working every day. In January, 14 percent of frequent callers made four or more moves per day.

Gate moves during Peak and OffPeak/exempt shifts:

  • Total Peak gate moves: 307,473 (56%)
  • Total OffPeak/Exempt gate moves: 242,961 (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 Monday through Friday, 6:00 p.m. to 3:00 a.m., and Saturday 8:00 a.m. to 5:00 p.m. Saturday night and Sunday shifts, which are not regularly scheduled, are considered “exempt.”

Note: Two terminals were closed during the first shift on the Martin Luther King, Jr. Day holiday, and one terminal was also closed during the second shift that day.

To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4.

PierPass January News and Updates

Overview

Unusually high levels of congestion continued in December at the Port of Los Angeles and Port of Long Beach. The ongoing shortage of available chassis continued to slow port operations. This was compounded by reported shortages of skilled labor needed to operate various terminal equipment.

Marine terminal operators worked to reduce the backlogs of containers by running 72 additional gates (shifts open to truck traffic) during the month. The 72 additional gates were a 31% increase over the 233 OffPeak gates originally scheduled for December. The MTOs operated 73 additional gates in September, a 30% increase, 86 additional gates in October, a 33% increase, and 118 additional gates in November, a 55% increase.

PierPass Monthly Transaction Data

After increasing for several months due to the congestion, truck transaction times began to fall in December.

Average in-terminal turn time in December 2014:

  • 55.9 minutes day shift
  • 58.4 minutes night shift

For comparison, the average in-terminal turn time in November 2014 was 58.3 minutes for the day shift and 61.4 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 for frequent callers* in December:

  • 5 or moves per day: 5%
  • 4 moves per day: 11%
  • 3 moves per day: 28%
  • 2 moves per day: 36%
  • 1 move per day: 20%

*The ports define frequent callers as trucks making one or more moves per weekday. Average moves per day by frequent callers tells us how many moves a truck can make if it is working every day. In December, 16 percent of frequent callers made four or more moves per day.

Gate moves during Peak and OffPeak/exempt shifts:

  • Total Peak gate moves: 333,879 (55%)
  • Total OffPeak/Exempt gate moves: 271,302 (45%)

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 Monday through Friday, 6:00 p.m. to 3:00 a.m., and Saturday 8:00 a.m. to 5:00 p.m. Saturday night and Sunday shifts, which are not regularly scheduled, are considered “exempt.”

Note: All terminals were closed on Christmas Day, December 25. Some terminals were also closed for one or both shifts on December 24 and December 31.

To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4.