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.”
