PierPass Provides Preliminary 2021 Report on OffPeak Gate Costs and TMF Collections

LONG BEACH, Calif., Feb. 22, 2022— PierPass today provided a preliminary 2021 financial summary of the OffPeak Program, which provides night and weekend truck gates at the marine terminals in the Ports of Los Angeles and Long Beach. PierPass manages the OffPeak Program on behalf of the West Coast MTO Agreement (WCMTOA).

The OffPeak Program takes truck trips that would otherwise occur during peak daytime traffic hours and moves them to less-congested nights and weekends, reducing traffic congestion on roads and highways and increasing total throughput capacity of the ports. Since 2005, the OffPeak Program has diverted more than 51 million trucks away from Southern California commuting hours.

In 2021, the net OffPeak Program costs were $348.4 million to operate 2,832 OffPeak gates. In 2021, the OffPeak Program collected and distributed $303.9 million in Traffic Mitigation Fees (TMF) to the WCMTOA marine terminal operator members to cover part of the OffPeak gates’ costs. An additional 489 gates that were not included in the WCMTOA published tariff were operated during non-peak hours and are not included in the OffPeak Program’s cost.

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 MTO Agreement 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 visit www.pierpass.org.

PierPass Customer Service Number: 877-863-3310

PIERPASS TRAFFIC MITIGATION FEE (TMF) TO CONTINUE AT “2.0”

The West Coast MTO Agreement filed a request with the Federal Maritime Commission (FMC ) to amend the agreement at the request of the Biden-Harris Administration Supply Chain Disruption Task Force. In the amendment request, WCMTOA stated that it was doing so because it was WCMTOA’s understanding that the Biden-Harris Administration Supply Chain Disruption Task Force has been monitoring all elements of the supply chain on a national level, and has a broader perspective than is available to the marine terminal members of WCMTOA.

Subsequent to the amendment filing, WCMTOA has been providing statistics to the FMC about gate activity and terminal operations on a weekly basis. Those statistics did not support the requested changes attempted to incentivize offpeak traffic through pricing. Therefore, WCMTOA will rescind its amendment and return to the OffPeak program, also known as “2.0.”

WCMTOA Agrees to Adjust TMF as Part of National Supply Chain Initiative

LONG BEACH, Calif., Feb. 1, 2022—At the request of the Biden-Harris Administration Supply Chain Disruptions Task Force, the West Coast MTO Agreement (WCMTOA) announced that it will again adjust the OffPeak program in response to the Task Force’s national supply chain analysis. The Task Force considers the PierPass OffPeak program as one link in the complex national supply chain that can assist with the objective of getting the entire supply chain to operate 24/7.

On Nov. 10, in response to an earlier request from the Task Force, WCMTOA announced that the Traffic Mitigation Fee (TMF) would be temporarily adjusted to $78.23 per TEU (twenty-foot equivalent unit) between Dec. 1 and Jan. 31, and would be charged only on weekdays during the daytime shift. Under this temporary adjustment, filed in November with the Federal Maritime Commission (FMC), the TMF was scheduled to revert to its previous levels after the holidays on Feb. 1. That change took place today, with the rate returning to $34.21 per TEU or $68.42 for all other sizes of container and payable throughout all hours of terminal operation. Under this version of the program, traffic is mitigated to the off-peak shifts using appointments.

On Jan. 21, the Biden-Harris Administration Supply Chain Disruptions Task Force’s Port Envoy requested that WCMTOA continue efforts to incentivize more truck trips to the off-peak shifts by continuing to waive its TMF during the second and third shift operations. Regulatory review requires a period of time for the FMC to review the request. Therefore, subject to regulatory clearance by the FMC, the rate will once again change on Feb. 14 to $78.23 per TEU (twenty-foot equivalent unit) and will be charged only on weekdays during the daytime shift.

Under the original PierPass OffPeak Program established in 2005 to mitigate severe traffic congestion around the ports, incentive pricing (charging a TMF for weekday, daytime container moves) was used to enable and drive traffic to new night shifts. After extensive consultations with supply chain participants, OffPeak 2.0 was introduced in 2018 to address supply chain requests that the program mitigate traffic with appointment systems instead of incentive pricing. The change also sought to eliminate the problematic truck bunching that occurred between shifts with the previous program.

Containers exempt from the TMF include empty containers, domestic and transshipment cargo, and 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. 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

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

LONG BEACH, Calif., Jan. 18, 2022—The West Coast MTO Agreement (WCMTOA) today reminded port users that the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will return to its pre-December rate on February 1, 2022.

On November 10, WCMTOA announced that the TMF would be temporarily adjusted to $78.23 per TEU between December 1 and January 31, and would be charged only on weekdays during the daytime shift. The temporary change in TMF levels and rules was intended to create a financial incentive to move more containers during off-peak hours by charging a TMF only during peak hours.

At the start of February, the TMF will revert to $34.21 per TEU (twenty-foot equivalent unit) or $68.42 for all other sizes of container for non-exempt international container moves through the terminals at the ports, and will again be payable throughout all hours of terminal operation.

WCMTOA worked with 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, in an effort to address challenges with links in the supply chain. The temporary change was put into place as the goods movement community entered the final holiday push in December followed by the January period leading up to Lunar New Year.

Over the course of the seven weeks since the TMF’s temporary adjustment was implemented, and with outreach to the entire supply chain and all of its users, the proportion of gate activity during the day shift versus the night shift did not change from where it has been averaging since 2018.

Under the original PierPass OffPeak Program established in 2005 to mitigate severe traffic congestion around the ports, incentive pricing (charging a TMF for weekday, daytime container moves) was used to enable and drive traffic to new night shifts. OffPeak was modified in 2018 to address supply chain requests that the program mitigate traffic with appointment systems instead of incentive pricing. The change also sought to eliminate the problematic truck bunching that occurred between shifts with the previous program.

Containers exempt from the TMF include empty containers, domestic and transshipment cargo, and 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. 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

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 4.0% on November 1, 2023

LONG BEACH, Calif., Sept 29, 2023 – The West Coast MTO Agreement (WCMTOA) today announced that on November 1, 2023, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 4%. The adjustment matches the combined 4% increase in longshore wage and assessment rates recently ratified in the coastwide contract between the International Longshore and Warehouse Union and the Pacific Maritime Association.

Beginning November 1, the TMF will be $35.57 per TEU (twenty-foot equivalent unit) or $71.14 per forty-foot 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 weekend 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. More than 57 million truck trips have been diverted to the off-peak shifts since the program’s inception. The container terminal operators mitigate truck traffic at their gates with appointment systems.

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 2022 totaled $324 million. During that year, the terminals received $295 million from the TMF to operate off-peak gates.

About PierPASS
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.

Media contact: media@pierpass.org

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.

West Coast Cargo Stakeholders Review PierPass Extended Gate Alternatives

SAN PEDRO, Calif., March 12, 2018 – More than 60 supply chain leaders gathered on March 8 to review the findings of an analysis of options for extended gate hours at the Ports of Los Angeles and Long Beach.

The Tioga Group Inc. and World Class Logistics (WCL) Consulting Inc. presented the results of their evaluation of two potential alternatives to the current model used under the OffPeak program managed by PierPass. Since 2005, the OffPeak program has mitigated traffic congestion caused by port truck operations by enabling and encouraging the pickup and delivery of containers on weeknights or Saturdays.

The two alternatives the study considered were appointments to control traffic flow, combined with a flat fee on both daytime and nighttime cargo moves; and port-wide peel-off, in which trucks would operate like taxis in an airport queue, each truck picking up the next container in the stack, providing minimal turn times.

Among the findings of the Tioga/WCL study were:

  • Appointment systems are a more effective way to manage truck flow and terminal workload
  • The current incentive fee on Peak (daytime) containers moves could be replaced with a flat fee on both days and nights to function better with appointment systems and eliminate issues related to the shift change
  • While a port-wide peel-off system received little support from truckers and cargo owners, integrating a conventional peel-off option along with an appointment system would give terminals an additional tool to reduce turn times and accelerate the velocity of freight

The March 8 Tioga/WCL presentation is available at http://wcmtoa.org/wp-content/uploads/2018/03/PierPass_Ext_Gates_Analysis_March2018.pdf.

The members of the West Coast MTO Agreement (WMCTOA) – the 12 marine terminal operators at the Los Angeles and Long Beach ports – will now review the recommendations and feedback from the March 8 meeting participants and determine how to proceed. A decision is expected to be announced within several weeks.

WCMTOA’s agent PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. Using a congestion pricing model, PierPass charges a Traffic Mitigation Fee (TMF) on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts on nights and Saturdays. Proceeds from the TMF help offset increased labor and other costs associated with operating the OffPeak shifts.

More than 40 million truck trips have been diverted out of weekday daytime traffic in the Los Angeles area since the program began, dramatically decreasing congestion on the region’s streets and highways and contributing to the clean air initiatives of the ports and the State of California.

While the OffPeak program has been very successful in meeting its goal, port users have expressed a desire for changes – which some have called “PierPass 2.0” – to increase flexibility and to address the bunching up of trucks that often occurs before the start of the OffPeak shifts.

The process of reviewing OffPeak alternatives has included a series of meetings beginning with an Oct. 2016 workshop where WCMTOA met with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, elected officials, government representatives, port authorities and other supply chain stakeholders. Subsequent meetings to address the issues surrounding the alternative models were held with the 40 supply chain stakeholders who together comprise the PierPass Advisory Committee (PPAC) and the Extended Gates Subcommittee (EGS). The Tioga study was one of the outcomes of this process.

The West Coast MTO Agreement is filed with the Federal Maritime Commission. For more information and to track continuing developments, please go to www.pierpass.org.

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PierPass Briefs Washington Regulators and Shipper Associations

Dear Users of OffPeak Gates,

PierPass Inc. issued the following press release this morning:

PierPass Briefs Washington Regulators and Shipper Associations

LONG BEACH, Calif., November 23, 2015—PierPass Inc. and marine terminal operator leaders conducted a series of meetings in Washington, DC last week with the Federal Maritime Commission chairman, commissioners and staff. The meetings reviewed how conditions at the marine terminals in the Ports of Los Angeles and Long Beach have rebounded strongly since the congestion crisis a year ago.

The 13 container terminals continue to provide extensive availability of service to cargo owners moving their containers through the two adjacent ports. The terminals provided an average of 82 hours per week of truck gates in August, 84 hours per week in September, and 82 hours per week in October.

These hours of service include daytime gates Monday through Friday; four to five OffPeak gates on nights and Saturdays; flex gates, where terminals hire extra labor to open before the start of a regular shift or remain open during contractually-mandated meal breaks; and ad-hoc gates, where terminals open up for an extra night or weekend to accommodate customer needs.

Improved Cargo Velocity

The time it takes for terminals to retrieve and load import containers onto trucks or receive export containers from trucks is down sharply from its peak a year ago. Cargo is moving through the Ports of Los Angeles and Long Beach at velocities not seen since the first half of 2014, before the congestion experienced during the second half of 2014.

For trucks picking up or dropping off containers at port terminals, in-terminal turn time in October averaged 48.3 minutes on OffPeak shifts, the lowest it has been since August 2014. Daytime in-terminal turn time in October averaged 46.3 minutes, the second-lowest it has been since June 2014. That is a significant drop from late 2014 through early 2015, when daytime and OffPeak turn times exceeded 60 minutes in some months.

Washington Delegation Reviews OffPeak Costs with FMC

The delegation from PierPass and terminal operators also used the meetings with the FMC as an opportunity to review the finances of PierPass Inc. and the OffPeak program. PierPass recently published an in-depth review of the methodology it uses to calculate the cost for the terminals to operate the OffPeak gates. The review is available at http://wcmtoa.org/wp-content/uploads/2015/11/PierPass-Financial-Overview_10-21-2015.pdf. The document also reviews the methodology used to audit PierPass Inc.

Meetings with Shippers Associations

While in Washington, the delegation provided similar updates to trade associations representing cargo owners, including the Agriculture Transportation Coalition, the National Retail Federation, the Retail Industry Leaders Association and the Waterfront Coalition.

“These shipper meetings continue the extensive and ongoing outreach that the marine terminal operators and PierPass conduct with industry partners,” said PierPass Inc. President John Cushing.

Among other activities, the terminal operators and PierPass participate in the Supply Chain Optimization initiative of the two ports, working with cargo owners, trucking companies, various associations and the ports to share information and initiate programs.

About PierPass
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. To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4. For additional information, please see www.pierpass.org.

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