Tuesday, December 15, 2009

Los Angeles Port Approves 2010 Economic Relief Package For Tenants

The five-member governing board for the Port of Los Angeles has approved $25.7 million in discounts, rate cuts and reduced rent for its tenants in 2010, citing a desire to help port tenants remain competitive and prevent diversions to other ports in tough economic times.

Nearly $20 million of the 2010 package will go toward an economic relief program that will provide each customer with a one-time credit in the amount of 6 percent of revenue paid in the 2007/2008 fiscal year, set to be paid out in the first six months of 2010.

The new package also includes an empty container rate reduction if the tenant's empty container numbers surpass 20 percent of total container volume for the terminal.

The final component of the 2010 package is a 50 percent reduction of the single wharfage rate for trans-shipped merchandise.

Port of Los Angeles tenants include APM Terminals, China Shipping Holding, Eagle Marine Services, Evergreen America, TraPac, Yang Ming Line, and Yusen Terminals, Inc.

The 2010 savings and incentive package mirrors a $14.8 million package the port put into effect earlier this year which included a 10 percent discount to customers on every intermodal container moving through tenant terminals, an incentive for eligible ocean common carriers which record an increase in the amount of intermodal containers moved through their terminals compared to the previous fiscal year, and a 50 percent rate reduction on up to six acres of space assignments. All of the 2009 package components expire on December 31,2009.