Dear Valued Customer:

PORTS OF LA/LB PIERPASS: CHANGES EXPECTED BY AUGUST 2018

On April 16, 2018 members of the West Coast MTO Agreement (WCMTOA) – the 12 marine terminal operators at the two adjacent ports – announced that they reached the decision to overhaul the PierPass model used by its OffPeak program for truck traffic mitigation at the Ports of Los Angeles and Long Beach, replacing the current model with an appointment-based system that uses a single flat fee on both daytime and nighttime container moves.

Subject to FMC regulatory approval, the revised OffPeak program is expected to begin in August.

According to PierPass President John Cushing, the original OffPeak program was effective for mitigating traffic congestion in 2005, but was fairly inflexible. In contrast, 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.

Port of Long Beach Executive Director Mario Cordero said, “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.”

A Q&A about the revised OffPeak program is available here.

The West Coast MTO Agreement is a discussion agreement filed with the FMC.

For more information and to track continuing developments, visit www.pierpass.org.

Thank you for your attention and cooperation. If you have any questions, please contact your nearest JJB representative.

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