The West Coast MTO Agreement (WCMTOA) has announced that on August 1, 2017, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 2.3%.
The adjustment matches the combined 2.3% increase in longshore wage and assessment rates that take effect on July 1, 2017.
Beginning August 1, the TMF will be $72.09 per TEU or $144.18 per fortyfoot container. The TMF is charged only on containers that are moved between 3:00am and 6:00pm on weekdays.
No TMF is due for containers moved during OffPeak shifts.
OffPeak provides these regular night and Saturday work shifts to handle trucks delivering and picking up containers at the 13 container terminals in the two adjacent ports.
PierPass launched the OffPeak programme 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 OffPeak shifts.
Using a congestion pricing model, PierPass charges a TMF on weekday daytime cargo moves to incentivise cargo owners to use the OffPeak shifts.
The TMF also 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 OffPeak shifts in 2016 totalled $224.7 million.
During that year, the terminals received $182.7 million from the TMF, offsetting about 81% of the OffPeak program's costs.