On July 8, 2016, the West Coast Marine Terminals Operators Agreement (WCMTOA) announced a 1.9 percent increase in the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach. The fee adjustment, scheduled to take effect on August 8, 2016, will enable PierPass OffPeak gates to remain fully operational amid labor cost increases.
Traffic Mitigation Fees as follows:
- $70.49 per TEU
- $140.98 per FEU
PierPass’s OffPeak program launched in 2005 to reduce severe cargo-related congestion on local streets and highways around both Los Angeles and Long Beach Ports; the program, which established regular night and Saturday work shifts, handles container pickups and deliveries at the 13 container terminals in LA-LB. To reduce congestion, PierPass charges a TMF on weekday/daytime cargo moves to incentivize cargo owners to use OffPeak shifts.
The TMF, and subsequent adjustments, fall under Rule 7 of the 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 (PMA) maritime labor cost figures.” The PMA negotiates and administers maritime contracts with the International Longshore and Warehouse Union (ILWU).
If you have any additional questions or concerns about the August 8th TMF increase, please send an email to Deringer’s Marketing Department.