The Port of Los Angeles/Long Beach announced: truck charges doubled!
In order to increase truck drivers' use of the ports' opening hours at night, the terminal operators of the Ports of Los Angeles and Long Beach announced that they will temporarily double the fees they charge for hauling trucks during the day.
It is reported that PierPass, a non-profit company founded by 12 terminal operators in Los Angeles and the Port of Long Beach, announced on Wednesday that it will increase its Traffic Mitigation Fee (TMF) to encourage the movement of containers during off-peak hours.
The announcement stated that this adjustment to TMF was made at the request of the special port envoy of the Biden government supply chain interruption working group and the executive director of the Port of Los Angeles/Long Beach.
▎TMF fee increase
Time: December 1 to January 31 of next year;
Applicable situation: Containers transported between 7 am and 6 pm on working days;
Charge details: US$78.23/TEU for standard container (previously US$34.21/TEU); US$156.46/container for all other sizes (previously US$68.42/container).
PierPass stated that from December 1st to January 31st next year, TMF of USD 78.23/TEU will be charged for containers transported between 7 am and 6 pm on weekdays, and the TMF of all other sizes of containers will be increased. To $156.46. The plan must be approved by the FMC.
Since 2018, PierPass has been charging TMF for all import and export containers passing through the ports of Los Angeles and Long Beach, and not for empty containers.
The last TMF charging standard was released in August of this year. It covers both day and night containers. The standard container charges are 34.21 USD/TEU, and all other sizes of containers are 68.42 USD.
During the two months from December 1st to January 31st next year, the new TMF will not be evaluated based on the container movement at night. These costs are linked to inflation and are used to offset the labor cost and other costs of the maritime terminal providing night gate opening.
"This action aims to increase the use of extended port opening hours by warehouses, distribution centers and trucks in order to promote the circulation of holiday goods in December and January before the Chinese New Year." PierPass said in an announcement announcing the increase in fees.
▎Truck drivers reported that the port efficiency could not be improved at night
Matt Schrap, CEO of the Port Trucking Association, said that shifting to 24-hour operations will not solve the fundamental problem of restricting truck drivers from quickly retrieving containers and eliminating port congestion.
Schrap said: "Notice two weeks in advance to increase the charges for daytime business. Unless they solve the reservation availability and empty box return restrictions, they will not see huge productivity at night."
Matt Schrap said that drivers reported that there were fewer crane operators on the docks at night than during the day, resulting in longer waiting times for them to retrieve imported goods. Drivers did not see a more efficient turnaround efficiency at night.
Schrap also stated that marine terminals need to do more to improve truck picking efficiency. Prior to this, drivers may be reluctant to pick up containers at night, because the federal service hours rules on driving time usually restrict drivers from working night or day shifts.
