Friday, November 15, 2013

Port of LA Approves Ocean Carrier Incentive Program

The Los Angeles Board of Harbor Commissioners has approved a new incentive program to reward shipping lines that bring new container business to the Port of Los Angeles in 2014.

Under the Ocean Common Carrier Incentive Program that was approved during the board’s Nov. 7 meeting, an ocean carrier will earn $5 per TEU for each incremental container it ships through the port in calendar year 2014.

The rate jumps to $15 per TEU for all TEUs, if a carrier’s container volume grows by 100,000 or more units for the same 12-month period.

The baseline for measuring the increased volume would be the total number of containers each carrier moved through the port in calendar year 2013. Carriers will receive their incentive in a lump-sum payment in early 2015.

The port says staff members will monitor the program on a monthly basis to evaluate its effectiveness and whether to recommend its extension beyond the first year.

Also during the same meeting, the Board established a two-member ad hoc committee on Port Industrial and Economic Development, which is dedicated to identifying and advancing the best economic practices for maintaining the port’s position as the top seaport in North America.

Vice President David Arian and Commissioner Patricia Castellanos will serve as the ad hoc committee.
“Both of these steps we’re taking today move us forward in our commitment to maintaining our No.1 status,” Arian said. “We will continue to develop new and innovative strategies to make sure we are as efficient and competitive as possible.”