Temporary Adjustment of the TMF at Ports of Los Angeles and Long Beach

LONG BEACH, Calif., November 10, 2021—The West Coast MTO Agreement (WCMTOA) today announced that the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will be temporarily adjusted from December 1, 2021, through January 31, 2022, subject to regulatory clearance by the Federal Maritime Commission. During this period, there will be a financial incentive to move containers during off-peak hours by charging a TMF during peak hours. Today’s announcement makes no changes to the appointment systems operated by individual terminals.

The adjustment comes at the request of the Port Envoy to the Biden-Harris Administration Supply Chain Disruptions Task Force, as well as the Executive Directors of the Ports of Los Angeles and Long Beach, as part of a collaborative effort to incentivize increased use of marine terminal gates during off-peak hours. The action is part of an overall effort to expand the use of warehouses, distribution centers, and trucking during the second and third shifts for the final push of holiday goods in December and into January leading to Lunar New Year.

From December 1, 2021, through January 31, 2022, the TMF will be $78.23 per TEU (twenty-foot equivalent unit) or $156.46 for all other sizes of container for non-exempt international container moves through the terminals at the ports of Los Angeles and Long Beach between the hours of 7:00 a.m. and 5:59 p.m. Monday through Friday.

Containers exempt from the TMF include empty containers; import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority; domestic and transshipment cargo; and loaded container moves through the terminals from 6:00 p.m. through 6:59 a.m. Monday through Saturday and all day (24 hours) on Saturdays, Sundays, and holidays. Empty chassis and bobtail trucks are also exempt.

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. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission, and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports. For more information, please see www.pierpass.org.

PierPASS Customer Service Number: 877-863-3310

TMF at Ports of Los Angeles and Long Beach to Increase 2.2% on August 1, 2021

LONG BEACH, Calif., June 30, 2021—The West Coast MTO Agreement (WCMTOA) today announced that on August 1, 2021, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 2.2 percent. The adjustment matches the combined 2.2 percent increase in longshore wage and assessment rates that take effect in early July.

Beginning August 1, the TMF will be $34.21 per TEU (twenty-foot equivalent unit) or $68.42 for all other sizes of container. The TMF is charged on non-exempt containers. Containers exempt from the TMF include empty containers; import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority; and transshipment cargo. Empty chassis and bobtail trucks are also exempt.

The OffPeak program provides regularly scheduled night or Saturday shifts to handle trucks delivering and picking up containers at the 12 container terminals in the two adjacent ports. PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion and air pollution on local streets and highways around the Los Angeles and Long Beach ports. Nearly half of all port truck trips now take place during the off-peak shifts. The container terminal operators mitigate truck traffic at their gates with appointment systems that spread truck trips out over the hours of operation.

The TMF helps offset the cost of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

According to an analysis by maritime industry consultants SC Analytics, the net costs incurred by the terminals to operate the off-peak shifts in 2020 totaled $276 million. During that year, the terminals received $235 million from the TMF, offsetting about 85 percent of the OffPeak program’s costs.

TMF at Ports of Los Angeles and Long Beach to Increase 4.2% on August 1

LONG BEACH, Calif., June 30, 2020—The West Coast MTO Agreement (WCMTOA) today announced that on August 1, 2020, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 4.2 percent. The adjustment matches the combined 4.2 percent increase in longshore wage and assessment rates that take effect in early July.

Beginning August 1, the TMF will be $33.47 per TEU (twenty-foot equivalent unit) or $66.94 for all other sizes of container. The TMF is charged on non-exempt containers. Containers exempt from the TMF include empty containers; import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority; and transshipment cargo. Empty chassis and bobtail trucks are also exempt.

The OffPeak program provides regularly scheduled night or Saturday shifts to handle trucks delivering and picking up containers at the 12 container terminals in the two adjacent ports. PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion and air pollution on local streets and highways around the Los Angeles and Long Beach ports. Nearly half of all port truck trips now take place during the off-peak shifts. The container terminal operators mitigate truck traffic at their gates with appointment systems that spread truck trips out over the hours of operation.

The TMF helps offset the cost of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

According to an analysis by maritime industry consultants SC Analytics, the net costs incurred by the terminals to operate the off-peak shifts in 2019 totaled $262 million. During that year, the terminals received $223 million from the TMF, offsetting about 85 percent of the OffPeak program’s costs.

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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