By Karen Robes Meeks
PierPass 2.0 – a new version of the extended gate hours program at the ports of Los Angeles and Long Beach – is expected to launch on Nov. 19, according to members of the West Coast MTO Agreement.
Subject to the conclusion of applicable Federal Maritime Commission procedures, PierPass 2.0 improves upon its OffPeak program to ease truck traffic at the nation’s two busiest seaports by moving from the current congestion-pricing model to an appointment-based system that uses a single flat fee on both daytime and nighttime container moves.
Instead of picking up cargo during weekday daytime hours, PierPass 2.0 users can collect their containers at any hour.
The new version isn’t expected to cause too much disruption since nine of the ports’ dozen terminals and the trucking companies that serve them are already using appointment systems. As for the three remaining terminals, SSA Marine intends to put in place its own appointment systems before PierPass 2.0 is implemented.
In order to make the update happen, the terminals have agreed to common appointment windows and common last appointment times for each shift. Terminals may even consider uniform rules and procedures in the program to maximize efficiencies.
Visit www.pierpass-tmf.org/ for more details on PierPass and to register.
Showing posts with label PierPass. Show all posts
Showing posts with label PierPass. Show all posts
Friday, October 19, 2018
Friday, April 27, 2018
PierPass Pricing Progress
By Karen Robes Meeks
PierPass’ OffPeak program for easing traffic congestion at the ports of Los Angeles and Long Beach is expected to roll out a new pricing model in August. The new appointment-based system will charge one flat fee on day and night container moves, the organization announced earlier this month.
The 12 marine terminal operators that make up the West Coast MTO Agreement approved the new model—which is still subject to regulatory approval—after 18 months of study and consultation.
"The industry has been demanding 'PierPass 2.0,' and we are responding," said PierPass President John Cushing. "The original OffPeak program was an innovative and highly effective solution to the challenges we faced in 2005. But it was fairly inflexible, whereas an appointment-based model is scalable and can evolve to meet changing industry needs, technology and practices."
OffPeak currently charges a fee on weekday daytime cargo moves to encourage cargo owners to shift OffPeak hours to nights and Saturdays.
The latest version replaces this two-tier fee structure with a single flat fee for shifts and use appointments to spread traffic across the two shifts.
Applying the fee to both day and night cargo will lower the fee by more than 55 percent and still have enough money to run the extended gate hours.
Instead of the current fee of $72.09 per TEU, users will pay a fee of $31.52 per TEU; the rate for all other container sizes will be a flat fee of $63.04, according to PierPass.
Port leaders applauded the change.
“I'm pleased and encouraged that PierPass members are taking a significant step forward to improve efficiencies at the San Pedro Bay port complex,” said Port of Los Angeles Executive Director Gene Seroka.
“The Port of Long Beach is pleased with the progress PierPass has made in working with industry stakeholders to improve night gate operations in our terminals,” said Port of Long Beach Executive Director Mario Cordero. "As ships are getting bigger and volumes increase, efficient gate management is critical to our ability to move cargo in a reliable, predictable and expedient manner," he added.
For more information, visit www.pierpass.org.
PierPass’ OffPeak program for easing traffic congestion at the ports of Los Angeles and Long Beach is expected to roll out a new pricing model in August. The new appointment-based system will charge one flat fee on day and night container moves, the organization announced earlier this month.
The 12 marine terminal operators that make up the West Coast MTO Agreement approved the new model—which is still subject to regulatory approval—after 18 months of study and consultation.
"The industry has been demanding 'PierPass 2.0,' and we are responding," said PierPass President John Cushing. "The original OffPeak program was an innovative and highly effective solution to the challenges we faced in 2005. But it was fairly inflexible, whereas an appointment-based model is scalable and can evolve to meet changing industry needs, technology and practices."
OffPeak currently charges a fee on weekday daytime cargo moves to encourage cargo owners to shift OffPeak hours to nights and Saturdays.
The latest version replaces this two-tier fee structure with a single flat fee for shifts and use appointments to spread traffic across the two shifts.
Applying the fee to both day and night cargo will lower the fee by more than 55 percent and still have enough money to run the extended gate hours.
Instead of the current fee of $72.09 per TEU, users will pay a fee of $31.52 per TEU; the rate for all other container sizes will be a flat fee of $63.04, according to PierPass.
Port leaders applauded the change.
“I'm pleased and encouraged that PierPass members are taking a significant step forward to improve efficiencies at the San Pedro Bay port complex,” said Port of Los Angeles Executive Director Gene Seroka.
“The Port of Long Beach is pleased with the progress PierPass has made in working with industry stakeholders to improve night gate operations in our terminals,” said Port of Long Beach Executive Director Mario Cordero. "As ships are getting bigger and volumes increase, efficient gate management is critical to our ability to move cargo in a reliable, predictable and expedient manner," he added.
For more information, visit www.pierpass.org.
Friday, July 28, 2017
OffPeak Program Successful
By Karen Robes Meeks
Over 40-million weekday truck trips have been diverted off Los Angeles area roads since the OffPeak program started 12 years ago this week, removing hundreds of tons of truck-spewing air pollution, according to PierPass Inc.
The program, which creates weeknight and Saturday delivery shifts to and from the ports of Los Angeles and Long Beach, removes more than 12,600 additional truck trips that would otherwise congest the roads between 8 a.m. and 5 p.m. during the week.
“In southern California, heavy-duty trucks are the single largest source of both the pollutants that cause smog and exposure to toxic diesel particulates,” said Wayne Nastri, Executive Officer of the South Coast Air Quality Management District. “By reducing the amount of time that trucks spend trapped in terminal queues or traffic jams, OffPeak has made a big contribution to addressing our region’s air pollution problem.”
OffPeak also offers financial incentives for curbing weekday daytime truck trips and funding for night and Saturday shifts.
“Efficient goods movement enables a crucial jobs engine for Southern California’s economy to continue thriving,” said Rep. Duncan Hunter, R-California, who serves as chair of the House Subcommittee on Coast Guard and Maritime Transportation. “The PierPass OffPeak program seeks to maximize the efficient use of existing transportation infrastructure and demonstrates the potential for private-sector innovation to tackle public policy problems. I encourage stakeholders to continue working together to strengthen the program to ensure goods can move as efficiently and safely as possible.”
The OffPeak program was established in the early 2000s after cargo volume surges led to increased traffic congestion, and air pollution and public outcry for solutions.
“Over the last 12 years, OffPeak had diverted more than 40 million trucks off our roads and freeways during the busiest times of the day,” said David Pettit, Senior Attorney at the Natural Resources Defense Council. “By reducing truck congestion at the marine container terminals and on the Harbor and Long Beach Freeway, the program has helped reduce pollution and increase mobility for the communities in and around the ports.”
Over 40-million weekday truck trips have been diverted off Los Angeles area roads since the OffPeak program started 12 years ago this week, removing hundreds of tons of truck-spewing air pollution, according to PierPass Inc.
The program, which creates weeknight and Saturday delivery shifts to and from the ports of Los Angeles and Long Beach, removes more than 12,600 additional truck trips that would otherwise congest the roads between 8 a.m. and 5 p.m. during the week.
“In southern California, heavy-duty trucks are the single largest source of both the pollutants that cause smog and exposure to toxic diesel particulates,” said Wayne Nastri, Executive Officer of the South Coast Air Quality Management District. “By reducing the amount of time that trucks spend trapped in terminal queues or traffic jams, OffPeak has made a big contribution to addressing our region’s air pollution problem.”
OffPeak also offers financial incentives for curbing weekday daytime truck trips and funding for night and Saturday shifts.
“Efficient goods movement enables a crucial jobs engine for Southern California’s economy to continue thriving,” said Rep. Duncan Hunter, R-California, who serves as chair of the House Subcommittee on Coast Guard and Maritime Transportation. “The PierPass OffPeak program seeks to maximize the efficient use of existing transportation infrastructure and demonstrates the potential for private-sector innovation to tackle public policy problems. I encourage stakeholders to continue working together to strengthen the program to ensure goods can move as efficiently and safely as possible.”
The OffPeak program was established in the early 2000s after cargo volume surges led to increased traffic congestion, and air pollution and public outcry for solutions.
“Over the last 12 years, OffPeak had diverted more than 40 million trucks off our roads and freeways during the busiest times of the day,” said David Pettit, Senior Attorney at the Natural Resources Defense Council. “By reducing truck congestion at the marine container terminals and on the Harbor and Long Beach Freeway, the program has helped reduce pollution and increase mobility for the communities in and around the ports.”
Tuesday, July 12, 2016
LA-LB Ports Container Fees Rising
By Mark Edward Nero
On July 8, the 13 marine terminal operators at the Los Angeles-Long Beach port complex announced a 1.9 percent increase in the traffic mitigation fee at the ports. Beginning Aug. 8, the container fee will be $70.49 per twenty-foot equivalent unit or $140.98 per forty-foot container.
The increase goes toward sustaining continued operation of off peak gate hours amid labor cost increases, according to the terminal operators collective.
The adjustment falls under the rules of the West Coast Marine Terminal Operator Agreement, which state that the container fee shall be adjusted annually to reflect increases in labor costs based on maritime labor cost figures.
The Pacific Maritime Association negotiates and administers maritime labor agreements with the International Longshore and Warehouse Union.
PierPass, a not-for-profit company created by marine terminal operators at the LA and Long Beach ports to address multi-terminal issues such as congestion, air quality and security, launched the off peak hours program in 2005 to reduce cargo-related congestion on local streets and highways around the ports.
The “OffPeak” program established regular night and Saturday work shifts to handle trucks delivering and picking up containers at the 13 container terminals in the two adjacent ports.
Using a congestion pricing model, PierPass charges a fee on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The fee also helps pay for the labor and other costs of operating the OffPeak shifts.
According to an analysis by maritime industry consultants SC Analytics, the costs incurred by the terminals to operate the OffPeak shifts in 2015 totaled $236.2 million. During the year, the terminals received $168.9 million from the traffic mitigation fee, offsetting only part of the OffPeak program’s costs.
Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends. About half of all port truck trips now take place during the OffPeak shifts, according to terminal operator data.
On July 8, the 13 marine terminal operators at the Los Angeles-Long Beach port complex announced a 1.9 percent increase in the traffic mitigation fee at the ports. Beginning Aug. 8, the container fee will be $70.49 per twenty-foot equivalent unit or $140.98 per forty-foot container.
The increase goes toward sustaining continued operation of off peak gate hours amid labor cost increases, according to the terminal operators collective.
The adjustment falls under the rules of the West Coast Marine Terminal Operator Agreement, which state that the container fee shall be adjusted annually to reflect increases in labor costs based on maritime labor cost figures.
The Pacific Maritime Association negotiates and administers maritime labor agreements with the International Longshore and Warehouse Union.
PierPass, a not-for-profit company created by marine terminal operators at the LA and Long Beach ports to address multi-terminal issues such as congestion, air quality and security, launched the off peak hours program in 2005 to reduce cargo-related congestion on local streets and highways around the ports.
The “OffPeak” program established regular night and Saturday work shifts to handle trucks delivering and picking up containers at the 13 container terminals in the two adjacent ports.
Using a congestion pricing model, PierPass charges a fee on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The fee also helps pay for the labor and other costs of operating the OffPeak shifts.
According to an analysis by maritime industry consultants SC Analytics, the costs incurred by the terminals to operate the OffPeak shifts in 2015 totaled $236.2 million. During the year, the terminals received $168.9 million from the traffic mitigation fee, offsetting only part of the OffPeak program’s costs.
Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends. About half of all port truck trips now take place during the OffPeak shifts, according to terminal operator data.
Tuesday, June 12, 2012
LA/Long Beach Container Fees to Rise
A 2.5 percent increase in
the traffic mitigation charge placed on containers moving through the Los Angeles
and Long Beach ports will be implemented beginning Aug. 1, 2012, the West Coast
MTO Agreement, which administers the fee, has announced.
Starting in August, the
fee will rise to $61.50 per 20-foot-equivalent unit and $123 per forty-foot container,
from the current rates of $60 and $120, respectively.
The WCMTOA, a collective
of terminal operators, says the increase is being put into place in order to address
increases in labor costs that take effect July 1.
The mitigation fee, which
dates back to 2005, helps pay for the night and weekend marine terminal shifts created
by the PierPass OffPeak program to relieve daytime congestion in and around the
ports.
It also provides a financial
incentive to move cargo during less congested times. The fee is charged for non-exempt
containers moving during the peak hours of Monday through Friday from 3 am to 6
pm.
On Aug. 1, 2011, the fee
increased for the first time since 2006. The $10 per TEU upsurge came after hourly
labor costs increased more than 31 percent for the same period. It was at that time
that the WCMTOA announced that beginning in mid-2012 it would begin adjusting the
fee annually to address labor cost increases.
The terminal operators say
they’ve operated the OffPeak program at a loss since the program’s 2005 inception,
when they doubled the number of shifts per week, thereby essentially spreading the
same number of containers over twice the working hours.
The shortfall between traffic
mitigation revenues and OffPeak gate costs was $55 million in 2011 and $52.3 million
in 2010, with cargo volume having been essentially flat since 2005, according to
the terminal operators group.
However, also since 2005,
the PierPass OffPeak program has helped achieve the goal of reducing traffic congestion
in and around the ports during daytime business hours. Off hours gates have grown
to handle about 55 percent of all container traffic at the ports, according to the
WCMTOA.
For more information on
the traffic mitigation fees or PierPass program, visit www.pierpass-tmf.org.
Tuesday, July 12, 2011
FMC Set To Discuss SoCal PierPass Rate Hike
The five-members of the Federal Maritime Commission on Wednesday are set to discuss plans by terminal operators at the Southern California ports of Long Beach and Los Angeles to implement a $10-per-TEU increase on the PierPass Traffic Mitigation Fee (TMF).
Last month, members of the West Coast Marine Terminal Operators Agreement, which formed PierPass six years ago, said they would delay the previously scheduled July 4 implementation of the TMF hike until Aug. 1. The increase would be the first since PierPass started.
The delay, according to the WCMTOA, "is in response to feedback from customers and other partners in the goods movement industry, and is intended to provide more time for cargo owners to prepare for the adjusted TMF."
The FMC has agendized a closed-session staff briefing and discussion of the topic for the July 13 meeting.
PierPass is a not-for-profit company created by marine terminal operators at the ports of Los Angeles and Long Beach in 2005 to address multi-terminal issues such as congestion, security and air quality. Under PierPass, all international container terminals at the two Southern California ports established five new off-peak hour terminal gate shifts per week.
As an incentive to using the off-peak gates and to cover the labor costs of the added gate shifts, PierPass charges the TMF against most cargo movement during peak gate hours of 3 a.m. to 6 p.m., Monday through Friday. These collected peak-hour fees are then used to offset the costs of operating the off-peak gate shifts.
Currently, about 55 percent of all drayed container traffic moving in and out of Los Angeles and Long Beach terminals is handled during the off-peak gate shifts.
A major concern among many in the industry is that the TMF has never fully covered the terminal operators' costs to run the extra gate shifts.
According to WCMTOA members, in 2010 there was a $52.3 million shortfall between TMF revenues and the costs of running the off-peak gates.
The additional $10-per-TEU TMF increase, based on current PierPass volumes, would only generate enough revenue to cover between 50 and 60 percent of the shortfall experienced in 2010.
The July 13 FMC meeting will also be the second for former Port of Long Beach Harbor Commissioner Mario Cordero, who was sworn in as the newest FMC commissioner on June 3.
Last month, members of the West Coast Marine Terminal Operators Agreement, which formed PierPass six years ago, said they would delay the previously scheduled July 4 implementation of the TMF hike until Aug. 1. The increase would be the first since PierPass started.
The delay, according to the WCMTOA, "is in response to feedback from customers and other partners in the goods movement industry, and is intended to provide more time for cargo owners to prepare for the adjusted TMF."
The FMC has agendized a closed-session staff briefing and discussion of the topic for the July 13 meeting.
PierPass is a not-for-profit company created by marine terminal operators at the ports of Los Angeles and Long Beach in 2005 to address multi-terminal issues such as congestion, security and air quality. Under PierPass, all international container terminals at the two Southern California ports established five new off-peak hour terminal gate shifts per week.
As an incentive to using the off-peak gates and to cover the labor costs of the added gate shifts, PierPass charges the TMF against most cargo movement during peak gate hours of 3 a.m. to 6 p.m., Monday through Friday. These collected peak-hour fees are then used to offset the costs of operating the off-peak gate shifts.
Currently, about 55 percent of all drayed container traffic moving in and out of Los Angeles and Long Beach terminals is handled during the off-peak gate shifts.
A major concern among many in the industry is that the TMF has never fully covered the terminal operators' costs to run the extra gate shifts.
According to WCMTOA members, in 2010 there was a $52.3 million shortfall between TMF revenues and the costs of running the off-peak gates.
The additional $10-per-TEU TMF increase, based on current PierPass volumes, would only generate enough revenue to cover between 50 and 60 percent of the shortfall experienced in 2010.
The July 13 FMC meeting will also be the second for former Port of Long Beach Harbor Commissioner Mario Cordero, who was sworn in as the newest FMC commissioner on June 3.
Tuesday, June 28, 2011
SoCal PierPass Fee Increase Delayed Until August
Terminal operators at the Southern California ports of Long Beach and Los Angeles on Monday said that they will delay the implementation of a $10-per-TEU increase on the PierPass Traffic Mitigation Fee (TMF) by about a month.
According to members of the West Coast Marine Terminal Operators Agreement, which formed PierPass six years ago, the delay "is in response to feedback from customers and other partners in the goods movement industry, and is intended to provide more time for cargo owners to prepare for the adjusted TMF."
Three weeks ago WCMTOA announced that effective July 4 it would increase the TMF from $50-per-TEU to $60-per-TEU, the group's first announced increase in the TMF since 2006.
The delay will now see the fee increase take effect on August 1.
PierPass is a not-for-profit company created by marine terminal operators at the ports of Los Angeles and Long Beach in 2005 to address multi-terminal issues such as congestion, security and air quality. Under PierPass, all international container terminals at the two Southern California ports established five new off-peak hour terminal gate shifts per week.
As an incentive to lure users into using the off-peak gates and to cover the labor costs of the added gate shifts, PierPass charges the TMF against most cargo movement during peak gate hours of 3 a.m. to 6 p.m., Monday through Friday. These collected peak-hour fees are then used to offset the costs of the off-peak gate shifts.
Currently, about 55 percent of all drayed container traffic moving in and out of Los Angeles and Long Beach terminals is handled during the off-peak gate shifts.
A lingering concern for the WCMTOA members is that the TMF has never fully covered the terminal operators' costs to run the extra gate shifts. According to WCMTOA members, the shortfall between TMF revenues and off-peak gate costs in 2010 was $52.3 million. Based on recent PierPass numbers, the additional $10-per-TEU TMF increase would only generate enough revenue to cover between 50 and 60 percent of the shortfall experienced in 2010.
According to members of the West Coast Marine Terminal Operators Agreement, which formed PierPass six years ago, the delay "is in response to feedback from customers and other partners in the goods movement industry, and is intended to provide more time for cargo owners to prepare for the adjusted TMF."
Three weeks ago WCMTOA announced that effective July 4 it would increase the TMF from $50-per-TEU to $60-per-TEU, the group's first announced increase in the TMF since 2006.
The delay will now see the fee increase take effect on August 1.
PierPass is a not-for-profit company created by marine terminal operators at the ports of Los Angeles and Long Beach in 2005 to address multi-terminal issues such as congestion, security and air quality. Under PierPass, all international container terminals at the two Southern California ports established five new off-peak hour terminal gate shifts per week.
As an incentive to lure users into using the off-peak gates and to cover the labor costs of the added gate shifts, PierPass charges the TMF against most cargo movement during peak gate hours of 3 a.m. to 6 p.m., Monday through Friday. These collected peak-hour fees are then used to offset the costs of the off-peak gate shifts.
Currently, about 55 percent of all drayed container traffic moving in and out of Los Angeles and Long Beach terminals is handled during the off-peak gate shifts.
A lingering concern for the WCMTOA members is that the TMF has never fully covered the terminal operators' costs to run the extra gate shifts. According to WCMTOA members, the shortfall between TMF revenues and off-peak gate costs in 2010 was $52.3 million. Based on recent PierPass numbers, the additional $10-per-TEU TMF increase would only generate enough revenue to cover between 50 and 60 percent of the shortfall experienced in 2010.
Tuesday, January 12, 2010
SoCal Ports' Nighttime Gate Program Hampered by Low Volumes
PierPass, the nighttime gates program at the ports of Long Beach and Los Angeles introduced in 2005 to deal with daytime truck congestion, could find itself a victim of the industry-wide downturn in cargo volume, according to NYK Line Americas Executive Vice President Peter Keller.
Keller told the audience of the National Retail Federation annual conference on Monday that the program, which places charges on daytime moves that are then used to pay for nighttime gates at the two ports to remain open, has had to drop some nighttime service due to a lack of volume. This has forced some shippers to shift cargo to the daytime gates and incur the additional daytime charges.
Keller said that the program, created by terminal operators at the height of the cargo boom in LA/LB, no longer makes sense with the recent drop in cargo volumes– which some individual LA/LB terminals have reported to be as high as 30 percent over the past year.
By all accounts the program has been a tremendous success, with nighttime gates paid for by PierPass at one time handling up to 40 percent of all gate moves at the two ports. However, with a surplus of daytime manpower and each nighttime gate requiring more costly overtime hours, Keller said he believes that the current efficacy of PierPass should be looked at closely.
