TMF at Ports of Los Angeles and Long Beach to Increase 4.0% on November 1, 2023

LONG BEACH, Calif., Sept 29, 2023 – The West Coast MTO Agreement (WCMTOA) today announced that on November 1, 2023, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 4%. The adjustment matches the combined 4% increase in longshore wage and assessment rates recently ratified in the coastwide contract between the International Longshore and Warehouse Union and the Pacific Maritime Association.

Beginning November 1, the TMF will be $35.57 per TEU (twenty-foot equivalent unit) or $71.14 per forty-foot container. The TMF is charged on non-exempt containers. Containers exempt from the TMF include empty containers; import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority; and transshipment cargo. Empty chassis and bobtail trucks are also exempt.

The OffPeak program provides regularly scheduled night or weekend shifts to handle trucks delivering and picking up containers at the 12 container terminals in the two adjacent ports. PierPASS launched the OffPeak program in 2005 to reduce severe cargo related congestion and air pollution on local streets and highways around the Los Angeles and Long Beach ports. More than 57 million truck trips have been diverted to the off-peak shifts since the program’s inception. The container terminal operators mitigate truck traffic at their gates with appointment systems.

The TMF helps offset the cost of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

According to an analysis by maritime industry consultants SC Analytics, the net costs incurred by the terminals to operate the off-peak shifts in 2022 totaled $324 million. During that year, the terminals received $295 million from the TMF to operate off-peak gates.

About PierPASS
PierPASS is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission, and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports. For more information, please see www.pierpass.org.

Media contact: media@pierpass.org

PierPass Provides Preliminary 2021 Report on OffPeak Gate Costs and TMF Collections

LONG BEACH, Calif., Feb. 22, 2022— PierPass today provided a preliminary 2021 financial summary of the OffPeak Program, which provides night and weekend truck gates at the marine terminals in the Ports of Los Angeles and Long Beach. PierPass manages the OffPeak Program on behalf of the West Coast MTO Agreement (WCMTOA).

The OffPeak Program takes truck trips that would otherwise occur during peak daytime traffic hours and moves them to less-congested nights and weekends, reducing traffic congestion on roads and highways and increasing total throughput capacity of the ports. Since 2005, the OffPeak Program has diverted more than 51 million trucks away from Southern California commuting hours.

In 2021, the net OffPeak Program costs were $348.4 million to operate 2,832 OffPeak gates. In 2021, the OffPeak Program collected and distributed $303.9 million in Traffic Mitigation Fees (TMF) to the WCMTOA marine terminal operator members to cover part of the OffPeak gates’ costs. An additional 489 gates that were not included in the WCMTOA published tariff were operated during non-peak hours and are not included in the OffPeak Program’s cost.

PierPass is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. The West Coast MTO Agreement is filed with the Federal Maritime Commission and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports. For more information, please visit www.pierpass.org.

PierPass Customer Service Number: 877-863-3310

PIERPASS TRAFFIC MITIGATION FEE (TMF) TO CONTINUE AT “2.0”

The West Coast MTO Agreement filed a request with the Federal Maritime Commission (FMC ) to amend the agreement at the request of the Biden-Harris Administration Supply Chain Disruption Task Force.  In the amendment request, WCMTOA stated that it was doing so because it was WCMTOA’s understanding that the Biden-Harris Administration Supply Chain Disruption Task Force has been monitoring all elements of the supply chain on a national level, and has a broader perspective than is available to the marine terminal members of WCMTOA.

Subsequent to the amendment filing, WCMTOA has been providing statistics to the FMC about gate activity and terminal operations on a weekly basis.  Those statistics did not support the requested changes attempted to incentivize offpeak traffic through pricing.  Therefore, WCMTOA will rescind its amendment and return to the OffPeak program, also known as “2.0.”

WCMTOA Agrees to Adjust TMF as Part of National Supply Chain Initiative

LONG BEACH, Calif., Feb. 1, 2022—At the request of the Biden-Harris Administration Supply Chain Disruptions Task Force, the West Coast MTO Agreement (WCMTOA) announced that it will again adjust the OffPeak program in response to the Task Force’s national supply chain analysis. The Task Force considers the PierPass OffPeak program as one link in the complex national supply chain that can assist with the objective of getting the entire supply chain to operate 24/7.

On Nov. 10, in response to an earlier request from the Task Force, WCMTOA announced that the Traffic Mitigation Fee (TMF) would be temporarily adjusted to $78.23 per TEU (twenty-foot equivalent unit) between Dec. 1 and Jan. 31, and would be charged only on weekdays during the daytime shift. Under this temporary adjustment, filed in November with the Federal Maritime Commission (FMC), the TMF was scheduled to revert to its previous levels after the holidays on Feb. 1. That change took place today, with the rate returning to $34.21 per TEU or $68.42 for all other sizes of container and payable throughout all hours of terminal operation. Under this version of the program, traffic is mitigated to the off-peak shifts using appointments.

On Jan. 21, the Biden-Harris Administration Supply Chain Disruptions Task Force’s Port Envoy requested that WCMTOA continue efforts to incentivize more truck trips to the off-peak shifts by continuing to waive its TMF during the second and third shift operations. Regulatory review requires a period of time for the FMC to review the request. Therefore, subject to regulatory clearance by the FMC, the rate will once again change on Feb. 14 to $78.23 per TEU (twenty-foot equivalent unit) and will be charged only on weekdays during the daytime shift.

Under the original PierPass OffPeak Program established in 2005 to mitigate severe traffic congestion around the ports, incentive pricing (charging a TMF for weekday, daytime container moves) was used to enable and drive traffic to new night shifts. After extensive consultations with supply chain participants, OffPeak 2.0 was introduced in 2018 to address supply chain requests that the program mitigate traffic with appointment systems instead of incentive pricing. The change also sought to eliminate the problematic truck bunching that occurred between shifts with the previous program.

Containers exempt from the TMF include empty containers, domestic and transshipment cargo, and import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority. Empty chassis and bobtail trucks are also exempt.

PierPass is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports.

For more information, please see www.pierpass.org.

PierPass Customer Service Number: 877-863-3310

Temporary Adjustment of the TMF Ends at Ports of Los Angeles and Long Beach

LONG BEACH, Calif., Jan. 18, 2022—The West Coast MTO Agreement (WCMTOA) today reminded port users that the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will return to its pre-December rate on February 1, 2022.

On November 10, WCMTOA announced that the TMF would be temporarily adjusted to $78.23 per TEU between December 1 and January 31, and would be charged only on weekdays during the daytime shift. The temporary change in TMF levels and rules was intended to create a financial incentive to move more containers during off-peak hours by charging a TMF only during peak hours.

At the start of February, the TMF will revert to $34.21 per TEU (twenty-foot equivalent unit) or $68.42 for all other sizes of container for non-exempt international container moves through the terminals at the ports, and will again be payable throughout all hours of terminal operation.

WCMTOA worked with the Port Envoy to the Biden-Harris Administration Supply Chain Disruptions Task Force, as well as the Executive Directors of the Ports of Los Angeles and Long Beach, in an effort to address challenges with links in the supply chain. The temporary change was put into place as the goods movement community entered the final holiday push in December followed by the January period leading up to Lunar New Year.

Over the course of the seven weeks since the TMF’s temporary adjustment was implemented, and with outreach to the entire supply chain and all of its users, the proportion of gate activity during the day shift versus the night shift did not change from where it has been averaging since 2018.

Under the original PierPass OffPeak Program established in 2005 to mitigate severe traffic congestion around the ports, incentive pricing (charging a TMF for weekday, daytime container moves) was used to enable and drive traffic to new night shifts. OffPeak was modified in 2018 to address supply chain requests that the program mitigate traffic with appointment systems instead of incentive pricing. The change also sought to eliminate the problematic truck bunching that occurred between shifts with the previous program.

Containers exempt from the TMF include empty containers, domestic and transshipment cargo, and import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority. Empty chassis and bobtail trucks are also exempt.

PierPass is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission, and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports.

For more information, please see www.pierpass.org.

PierPass Customer Service Number: 877-863-3310

Temporary Adjustment of the TMF at Ports of Los Angeles and Long Beach

LONG BEACH, Calif., November 10, 2021—The West Coast MTO Agreement (WCMTOA) today announced that the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will be temporarily adjusted from December 1, 2021, through January 31, 2022, subject to regulatory clearance by the Federal Maritime Commission. During this period, there will be a financial incentive to move containers during off-peak hours by charging a TMF during peak hours. Today’s announcement makes no changes to the appointment systems operated by individual terminals.

The adjustment comes at the request of the Port Envoy to the Biden-Harris Administration Supply Chain Disruptions Task Force, as well as the Executive Directors of the Ports of Los Angeles and Long Beach, as part of a collaborative effort to incentivize increased use of marine terminal gates during off-peak hours. The action is part of an overall effort to expand the use of warehouses, distribution centers, and trucking during the second and third shifts for the final push of holiday goods in December and into January leading to Lunar New Year.

From December 1, 2021, through January 31, 2022, the TMF will be $78.23 per TEU (twenty-foot equivalent unit) or $156.46 for all other sizes of container for non-exempt international container moves through the terminals at the ports of Los Angeles and Long Beach between the hours of 7:00 a.m. and 5:59 p.m. Monday through Friday.

Containers exempt from the TMF include empty containers; import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority; domestic and transshipment cargo; and loaded container moves through the terminals from 6:00 p.m. through 6:59 a.m. Monday through Saturday and all day (24 hours) on Saturdays, Sundays, and holidays. Empty chassis and bobtail trucks are also exempt.

PierPASS is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission, and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports. For more information, please see www.pierpass.org.

PierPASS Customer Service Number: 877-863-3310

TMF at Ports of Los Angeles and Long Beach to Increase 2.2% on August 1, 2021

LONG BEACH, Calif., June 30, 2021—The West Coast MTO Agreement (WCMTOA) today announced that on August 1, 2021, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 2.2 percent. The adjustment matches the combined 2.2 percent increase in longshore wage and assessment rates that take effect in early July.

Beginning August 1, the TMF will be $34.21 per TEU (twenty-foot equivalent unit) or $68.42 for all other sizes of container. The TMF is charged on non-exempt containers. Containers exempt from the TMF include empty containers; import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority; and transshipment cargo. Empty chassis and bobtail trucks are also exempt.

The OffPeak program provides regularly scheduled night or Saturday shifts to handle trucks delivering and picking up containers at the 12 container terminals in the two adjacent ports. PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion and air pollution on local streets and highways around the Los Angeles and Long Beach ports. Nearly half of all port truck trips now take place during the off-peak shifts. The container terminal operators mitigate truck traffic at their gates with appointment systems that spread truck trips out over the hours of operation.

The TMF helps offset the cost of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

According to an analysis by maritime industry consultants SC Analytics, the net costs incurred by the terminals to operate the off-peak shifts in 2020 totaled $276 million. During that year, the terminals received $235 million from the TMF, offsetting about 85 percent of the OffPeak program’s costs.

About PierPass

PierPass is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission, and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports. For more information, please see www.pierpass.org.

PierPass Customer Service Number: 877-863-3310

PierPass Diverts 48 Million Truck Trips From Los Angeles / Long Beach Peak Traffic Since 2005

LONG BEACH, Calif., July 21, 2020 – PierPass Inc. announced that its OffPeak Program has taken 48 million truck trips out of daytime Southern California traffic since the program’s inception in July 2005. OffPeak reduces cargo-related congestion and pollution in and around the Ports of Los Angeles and Long Beach by diverting truck trips to night and Saturday shifts funded by the program.

The number of annual truck trips to and from the ports rose 20% between 2005 and 2019, a period that saw no significant expansion of nearby highway capacity.

“The PierPass OffPeak program has helped the LA/LB ports continue operating as a major source of jobs in Southern California,” said Congressman Alan Lowenthal. “I was very proud to spearhead the legislative effort that led both to the creation of PierPass and to extended hours at the ports.”

The OffPeak Program established regular night and Saturday work shifts at the two adjacent ports. The expanded shifts are primarily funded by a Traffic Mitigation Fee (TMF) levied on loaded containers entering and exiting the ports by truck.

Because there is no fee on intermodal cargo (containers leaving or arriving by rail), the TMF is paid by cargo headed for Southern California and other nearby destinations. For example, containers arriving from Asia and leaving the ports by rail to other parts of the U.S. don’t pay the TMF.

“PierPass is a prime example of the private sector joining together to take coordinated action to address the needs of the goods movement industry and the needs of the community,” Rep. Lowenthal added. “Their OffPeak program has helped our economy, our workers, and the health of our residents.”

The OffPeak Program was restructured in November 2018 after an 18-month process of consultation with industry stakeholders, and an analysis and survey by industry consultants. The revised program, informally called “PierPass 2.0,” reduces traffic congestion by spreading cargo movement across two shifts using appointments.

Heavy-duty trucks are the largest source of smog-forming nitrogen oxide emissions and toxic diesel exhaust in the region. By decreasing the time that trucks are idling and stuck in traffic, the OffPeak program has also helped to improve air quality.

“The severe traffic impacts caused by cargo movement in the pre-PierPass era of daytime-only operation is becoming a distant memory,” said PierPass President John Cushing. “The program has enabled Southern California’s distribution centers and warehouses to regularly operate a second shift, and has been a model for other ports around the country that have created their own programs for extended gates.”

TMF at Ports of Los Angeles and Long Beach to Increase 4.2% on August 1

LONG BEACH, Calif., June 30, 2020—The West Coast MTO Agreement (WCMTOA) today announced that on August 1, 2020, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 4.2 percent. The adjustment matches the combined 4.2 percent increase in longshore wage and assessment rates that take effect in early July.

Beginning August 1, the TMF will be $33.47 per TEU (twenty-foot equivalent unit) or $66.94 for all other sizes of container. The TMF is charged on non-exempt containers. Containers exempt from the TMF include empty containers; import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority; and transshipment cargo. Empty chassis and bobtail trucks are also exempt.

The OffPeak program provides regularly scheduled night or Saturday shifts to handle trucks delivering and picking up containers at the 12 container terminals in the two adjacent ports. PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion and air pollution on local streets and highways around the Los Angeles and Long Beach ports. Nearly half of all port truck trips now take place during the off-peak shifts. The container terminal operators mitigate truck traffic at their gates with appointment systems that spread truck trips out over the hours of operation.

The TMF helps offset the cost of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

According to an analysis by maritime industry consultants SC Analytics, the net costs incurred by the terminals to operate the off-peak shifts in 2019 totaled $262 million. During that year, the terminals received $223 million from the TMF, offsetting about 85 percent of the OffPeak program’s costs.

About PierPass
PierPass is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission, and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports.