The West Coast MTO Agreement (WCMTOA) recently announced that the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 2.3% on August 1, 2017. The adjustment matches the combined 2.3% increase in longshore wage and assessment rates that took effect on July 1st of this year.
August 1st TMF rates for both twenty and forty foot containers:
- $72.09 per TEU (twenty-foot equivalent unit) which is an increase of $1.60 over the current price
- $144.18 per FEU (forty-foot equivalent unit) which is an increase of $3.20 over the current price
The TMF is charged only on containers that are moved between 3:00 a.m. and 6:00 p.m. on weekdays. No TMF is due for containers moved during OffPeak shifts (6:00 p.m. to 3:00 a.m. on weekdays or 8:00 a.m. to 5:00 p.m. on Saturdays).
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 1st TMF increase, please send an email to Deringer’s Marketing Department.