TRADE ALERT

PIERPASS to Increase Traffic Mitigation Fee

(April 3, 2006)

Effective April 24, 2006, the traffic mitigation fees assessed for moving freight during peak hours in the ports of Los Angeles and Long Beach are as follows:

According to PierPass, fees collected from the OffPeak program are used to cover costs associated with night gate operations, administrative, and overhead costs to direct the program. Subsequent to the launch of the OffPeak program, an independent audit determined that revenue generated from the traffic mitigation fees established last year were not sufficient to sustain the costs associated with running the program. Consequently, PierPass will adjust the rates on April 24, 2006 to operate the OffPeak program at a break-even level.

Background

PierPass Inc., is a non-profit organization, founded in 2004 by the marine terminal operators at the ports of Los Angeles and Long Beach to address growing concerns over congestion and air pollution. PierPass' OffPeak program was launched in 2005 to alleviate port congestion and pollution during peak traffic hours. The program encourages cargo owners to move their freight at night and on weekends, in lieu of during peak traffic hours. Cargo owners who choose not to take advantage of this program are assessed a Traffic Mitigation Fee (TMF) for each container that is moved during peak hours.

OffPeak Program

To qualify as "offpeak," cargo must be moved Monday through Thursday from 6:00 PM to 3:00 AM, and on Saturday from 8:00 AM to 6:00 PM. To find out more about the OffPeak program please visit www.pierpass.org.

Since the inception of OffPeak, Deringer has been assisting clients with the program. Should you have any questions about PierPass or the OffPeak program, please email your inquiries to logistics@anderinger.com.