POLA and POLB Marine Terminal Gates Closed on Thursday, August 4, 2016 at 5 p.m.

Dear Users of OffPeak Gates,

PierPass Inc. has been notified that the International Longshore and Warehouse Union (ILWU) will observe a special stop work meeting for union business on Thursday, August 4, 2016, starting at 5 p.m. As a result, no marine terminal gates at the Port of Los Angeles and the Port of Long Beach will operate between the hours of 5:00 p.m. on August 4 through 3:00 a.m. on August 5. There will be no OffPeak shift Thursday night August 4.

Please check with individual terminals for substitute or alternative gates.

This labor shutdown falls under Rule 5 of the Marine Terminal Operator Schedule No. 1, which is available at:

http://www.pierpass.org/wp-content/uploads/2016/07/8-8-16-MTO-Schedule.pdf

PierPass Inc.

Truck Turn Times in Q2 were Fastest in Two Years at Ports of Los Angeles and Long Beach

LONG BEACH, Calif., July 13, 2016 – In the second quarter of 2016, trucks were able to pick up and deliver containers at the Ports of Los Angeles and Long Beach more quickly than in any other quarter over the last two years, according to monthly data reported by marine terminals and compiled by PierPass Inc.

In both May and June, turn times fell below 40 minutes during the Peak shift and below 45 minutes during the OffPeak shift for the first time since the second quarter of 2014. Turn time measures how long it takes a truck to drop off or pick up a container at a marine terminal. The average turn times for the full quarter were 40.8 minutes (Peak) and 43.0 minutes (OffPeak), down from 55.3 minutes (Peak) and 58.4 minutes(OffPeak) during the fourth quarter of 2014.

In order to increase cargo velocity, terminals have invested hundreds of millions of dollars in new automation technology and other infrastructure. They have also implemented new procedures to address challenges presented by the arrival of much larger new ships, the spread of vessel-sharing agreements and the transition of chassis ownership from shipping lines to leasing companies. Terminals have also increased their coordination with trucking companies to extend the use of free-flow or peel-off procedures for rapid delivery of large groups of containers.

More of the terminals have also moved to adopt appointment systems, to better spread cargo movement over the hours of operation and coordinate which areas of the yard are being worked to enable more efficient use of container-moving equipment. As of July 2016, seven of the 13 terminals are using appointment systems, with more expected to come online by the end of the year.

“Through investment, innovation and collaboration with other port stakeholders, the terminals have repeatedly demonstrated their ability to overcome operational challenges,” said PierPass President John Cushing. “This ability, combined with the capacity, flexibility and geographic advantages of Los Angeles and Long Beach, has maintained our position as the premier port complex in North America.”

“We are encouraged by the recent turn time results and appreciate the work that has been done to attain these gains,æ said Port of Los Angeles Executive Director Gene Seroka. “We look forward to partnering with stakeholders to obtain further reductions and additional supply chain efficiencies.”

During the second quarter of 2016, more than 850,000 containers were picked up or delivered on weeknights or Saturdays during the OffPeak shifts established by PierPass. Without OffPeak, those truck trips would take place during weekday daytime traffic, greatly increasing congestion on the roads and highways of nearby communities.

PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. Using a congestion pricing model, PierPass charges a Traffic Mitigation Fee on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The TMF also helps pay for the labor and other costs of operating the OffPeak shifts.

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.

For more information about turn times and how PierPass measures them, please see our Q&A at http://goo.gl/PiOjBp.

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. PierPass launched the OffPeak program in 2005 to reduce cargo-related congestion on local streets and highways around the ports by establishing regular night and Saturday work shifts. 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. For more information, please see www.pierpass.org.

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Marine Terminal Operators at Ports of Los Angeles and Long Beach to Adjust TMF on August 8

LONG BEACH, Calif., July 8, 2016 – The West Coast MTO Agreement (WCMTOA) today announced a 1.9 percent increase in the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach, scheduled to take effect on August 8, 2016. The increase will sustain continued operation of PierPass OffPeak gates amid labor cost increases.

Beginning August 8, the TMF will be increased to $70.49 per TEU (twenty-foot equivalent unit) or $140.98 per forty-foot container.

The adjustment falls under Rule 7 of WCMTOA’s Marine Terminal Schedule No. 1, which states, “Beginning in mid-2012, the Fee shall be adjusted annually to reflect increases in labor costs based on Pacific Maritime Association maritime labor cost figures.” The PMA negotiates and administers maritime labor agreements with the International Longshore and Warehouse Union (ILWU).

PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. OffPeak 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 TMF on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The TMF 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.

PierPass Briefs Washington Regulators and Shipper Associations

Dear Users of OffPeak Gates,

PierPass Inc. issued the following press release this morning:

PierPass Briefs Washington Regulators and Shipper Associations

LONG BEACH, Calif., November 23, 2015—PierPass Inc. and marine terminal operator leaders conducted a series of meetings in Washington, DC last week with the Federal Maritime Commission chairman, commissioners and staff. The meetings reviewed how conditions at the marine terminals in the Ports of Los Angeles and Long Beach have rebounded strongly since the congestion crisis a year ago.

The 13 container terminals continue to provide extensive availability of service to cargo owners moving their containers through the two adjacent ports. The terminals provided an average of 82 hours per week of truck gates in August, 84 hours per week in September, and 82 hours per week in October.

These hours of service include daytime gates Monday through Friday; four to five OffPeak gates on nights and Saturdays; flex gates, where terminals hire extra labor to open before the start of a regular shift or remain open during contractually-mandated meal breaks; and ad-hoc gates, where terminals open up for an extra night or weekend to accommodate customer needs.

Improved Cargo Velocity

The time it takes for terminals to retrieve and load import containers onto trucks or receive export containers from trucks is down sharply from its peak a year ago. Cargo is moving through the Ports of Los Angeles and Long Beach at velocities not seen since the first half of 2014, before the congestion experienced during the second half of 2014.

For trucks picking up or dropping off containers at port terminals, in-terminal turn time in October averaged 48.3 minutes on OffPeak shifts, the lowest it has been since August 2014. Daytime in-terminal turn time in October averaged 46.3 minutes, the second-lowest it has been since June 2014. That is a significant drop from late 2014 through early 2015, when daytime and OffPeak turn times exceeded 60 minutes in some months.

Washington Delegation Reviews OffPeak Costs with FMC

The delegation from PierPass and terminal operators also used the meetings with the FMC as an opportunity to review the finances of PierPass Inc. and the OffPeak program. PierPass recently published an in-depth review of the methodology it uses to calculate the cost for the terminals to operate the OffPeak gates. The review is available at http://www.pierpass.org/wp-content/uploads/2015/11/PierPass-Financial-Overview_10-21-2015.pdf. The document also reviews the methodology used to audit PierPass Inc.

Meetings with Shippers Associations

While in Washington, the delegation provided similar updates to trade associations representing cargo owners, including the Agriculture Transportation Coalition, the National Retail Federation, the Retail Industry Leaders Association and the Waterfront Coalition.

“These shipper meetings continue the extensive and ongoing outreach that the marine terminal operators and PierPass conduct with industry partners,” said PierPass Inc. President John Cushing.

Among other activities, the terminal operators and PierPass participate in the Supply Chain Optimization initiative of the two ports, working with cargo owners, trucking companies, various associations and the ports to share information and initiate programs.

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. To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4. For additional information, please see www.pierpass.org.

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PierPass Names Kevin Recker as Chief Financial Officer

LONG BEACH, Calif., August 10, 2015 – PierPass Inc. today named Kevin Recker as its Chief Financial Officer. In the position, Recker is responsible for financial management and accounting for PierPass, including oversight of the OffPeak program, which manages the night and Saturday truck gates at the Port of Los Angeles and Port of Long Beach.

Recker comes to PierPass after serving as Director of Accounting at International Transportation Service Inc. (ITS), which operates marine container terminals at the Ports of Long Beach and Tacoma. He has also served in senior accounting and audit positions at the Los Angeles Junior Chamber of Commerce, Panasonic Disc Services Corp., and with public accounting firms. Recker earned his Bachelor of Science degree from California State University, Long Beach, in Business Administration and Accountancy, and is a Certified Public Accountant.

“Kevin’s career in both public and private accounting and his experience in the maritime industry bring the necessary skills to hit the track running as PierPass’s new CFO,” said PierPass President John Cushing.

Recker will replace Tom Stephenson, who is retiring after more than 10 years in the position.

“I would like to express my gratitude to Tom Stephenson, who was instrumental in getting the PierPass accounting and finance program off the ground and in guiding the program through a decade of efficient and effective operations,” Cushing said.

California Political and Environmental Leaders Laud PierPass OffPeak Program for Decade of Impact

Program Diverts 34 Million Truck Trips From Los Angeles / Long Beach Peak Traffic Since 2005

LONG BEACH, Calif., July 23, 2015 – PierPass Inc. today celebrated the 10-year anniversary of the OffPeak Program, which established regular night and Saturday work shifts at the Port of Los Angeles and Port of Long Beach, and pledged continuing efforts to minimize cargo-related congestion in and around the ports. Since July 23, 2005, OffPeak has taken 34 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends.

PierPass created OffPeak as a private sector solution to what was then a critical public problem: after a rapid rise in cargo volume in the early 2000s, drayage trucks were causing severe congestion on the roads and highways and in the neighborhoods around the ports, while thousands of idling trucks caught in this traffic every day added to air pollution. The ports came under strong community and political pressure to find a solution.

PierPass effectively doubles the capacity of the nation’s largest and busiest port complex without taxpayer money and without waiting for new infrastructure to be built. It enables the economic benefits of cargo transportation – which provides nearly 700,000 Southern California jobs and generates more than $10 billion in state and local taxes annually – while greatly mitigating the traffic and air quality impacts of the ports’ operations. OffPeak now regularly diverts about half of the roughly 150,000 weekly truck trips to nights and Saturdays.

“Heavy-duty trucks are the largest source of smog-forming nitrogen oxide emissions in our region,” explains South Coast Air Quality Management District Executive Officer Barry Wallerstein. “By decreasing the time that trucks are idling and stuck in traffic, the OffPeak program has helped to significantly improve air quality.”

The mayors of Los Angeles and Long Beach hailed the OffPeak program’s achievements on its 10th anniversary.

“The OffPeak program has facilitated the continued growth of the Port of Long Beach,” said Long Beach Mayor Robert Garcia, “while lowering the adverse environmental impacts of their operations.”

“For the last decade, PierPass has instituted innovative and creative problem solving for the goods movement industry in Southern California,” said Los Angeles Mayor Eric Garcetti. “Their program has helped to bring jobs to America’s #1 port, while helping us reduce our environmental footprint in the Harbor area.”

Congressman Alan Lowenthal, who introduced legislation to address truck congestion at the ports when he was an Assemblyman in the California Legislature, said, “Given the success of OffPeak, many don’t remember how bad it was at the ports in the years before the program’s creation. The OffPeak program really helped reduce the stress on port-adjacent communities and traffic on key freeways.”

Using a congestion pricing model, PierPass charges a Traffic Mitigation Fee (TMF) on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The TMF also helps pay for the cost of operating the OffPeak shifts, which upon introduction in 2005 roughly doubled the labor cost to handle the same amount of cargo. Container volume rose only 6% between 2005 and 2014.

On an average OffPeak weeknight, 13,500 trucks visit the marine container terminals at the Los Angeles and Long Beach ports. If all of these trucks were lined up bumper-to-bumper, they would form a line 145 miles long, stretching halfway to Las Vegas. Without the OffPeak program, this cargo would be crammed into a single day shift, doubling daytime volumes and once again causing severe congestion.

“We are proud of what we have accomplished with the OffPeak program, but we aren’t resting on our accomplishments,” said PierPass President John Cushing. “PierPass and the terminals are constantly working with our partners at the ports and others in the supply chain to improve the velocity of freight and reduce the environmental impact of port operations.”

About PierPass
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, air quality and security. To learn what it takes for a truck to drop off or pick up a container at a marine terminal, see http://youtu.be/P9IJN1yIIJ4. For additional information, please see www.pierpass.org.

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PierPass Customer Service Numbers:
877-863-3310 (from inside the United States)
1-973-355-3575 (from outside the United States)

Terminal Operators at the Ports of Los Angeles and Long Beach to Adjust PierPass TMF on August 1

LONG BEACH, Calif., June 30, 2015 – The West Coast MTO Agreement (WCMTOA) today announced an increase in the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach, scheduled to take effect on August 1, 2015. The increase will sustain continued operation of PierPass OffPeak gates amid labor cost increases.

Beginning August 1, the TMF will be increased from $66.50 per TEU (twenty-foot equivalent unit) to $69.17 per TEU or $138.34 per forty-foot container.

WCMTOA periodically adjusts the TMF based on changes in maritime labor costs. The announced change reflects increases in labor costs contained in the contract recently agreed to between the Pacific Maritime Association and the International Longshore and Warehouse Union (ILWU). The TMF was last adjusted in August 2013.

The Traffic Mitigation Fee helps pay for the night and Saturday 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 TMF is charged for non-exempt containers moving during peak hours (Monday through Friday, 3 a.m. to 6 p.m.).

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 13 international MTOs serving the Los Angeles and Long Beach ports. For more information, please see www.pierpass.org.

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With Labor and Chassis Issues Addressed, PierPass Member Terminals Increase Throughput 46% in First Half of March

LONG BEACH, Calif., March 18, 2015 —In the wake of a tentative labor deal announced Feb. 20 and the formation of a port-wide chassis pool on March 1, marine terminals at the Port of Los Angeles and Port of Long Beach moved 46% more cargo containers by truck during the first half of March compared with the same period in February, PierPass Inc. said today.

From March 2 through March 15, nearly 303,000 import and export containers moved by truck into or out of the terminals, compared to nearly 207,000 from Feb. 2 through Feb. 15, according to gate transaction data collected by PierPass. These include containers moved during day shifts and the OffPeak shifts managed by PierPass on nights and Saturdays. The OffPeak program diverts about half of port truck trips out of Monday-through-Friday daytime traffic while roughly doubling the capacity of the Los Angeles and Long Beach ports.

According to the Marine Exchange of Southern California, there were 30 ships waiting to be unloaded at the Los Angeles and Long Beach ports on Monday March 16, down from 36 on Feb. 26.

“The terminals are intensely focused on returning to normal operations as quickly as possible,” said John Cushing, president of PierPass, which represents the 13 container terminals at the two adjacent ports. “While much work remains to be done, we can report progress in accelerating cargo movement by mid- March.”

PierPass today also reported some progress in reducing transaction times for trucks at the terminals. Average truck turn times dropped during the month of February (most of which fell before the Feb. 20 labor agreement) compared with January. It took trucks an average of 49.6 minutes to complete one transaction (picking up or delivering a container) on the Peak (weekday daytime) shift in February, down from 60.9 minutes in January. On OffPeak shifts, turn times in February averaged 53 minutes, down from 55.8 minutes in January.

In another move to reduce the cargo backlog, two terminals have leased additional port-owned land in order to accept empty containers and make more room for imports and exports. A third terminal has leased additional land to where it is bringing loaded containers mounted on chassis ready for truckers to pick up.

Terminal operators continue to work with trucking companies and cargo owners to increase the use of free-flow, sometimes known as peel-off, a practice PierPass has promoted to reduce truck waiting times. Free-flow enables bulk delivery of large groups of containers destined for the same location, typically to a single cargo owner. The terminals pre-stage the containers in a separate stack. The cargo owner then sends a stream of trucks into the terminal and each truck takes the next container in the stack.

“We have been very proactive with different terminal efficiency tools that include our appointment system and peel-off piles,” said Rickey Childs, head of operations for Eagle Marine Services. “We continue to work with the trucking community for increased OffPeak utilization, especially during the second half of the shift when there is minimal truck activity at the gates.”

On March 1, three of the largest chassis leasing companies at the Los Angeles and Long Beach ports formed a gray chassis “pool of pools” intended to solve the chassis supply disruption that emerged last year after shipping lines sold their chassis to private leasing companies. The new system makes chassis interchangeable for truckers and terminals. The three leasing companies control about 100,000 chassis in Southern California.

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PierPass December News and Updates

Overview

The marine terminals at the Port of Los Angeles and Port of Long Beach continued to experience unusually high congestion during November, and responded by operating 55% more OffPeak truck gates than originally scheduled.

The largest cause of congestion over the past several months has been the shortage of available chassis. This has been compounded by shortages of available longshore labor and truck drivers.

Marine terminal operators (MTOs) continued to work additional shifts in November to alleviate congestion. MTOs operated 118 additional gates (shifts open to truck traffic) in November, a 55% increase over the 213 OffPeak gates originally scheduled for the month. The MTOs operated 73 additional gates in September, a 30% increase, and 86 additional gates in October, a 33% increase.

The MTOs have been spending $3 million per week on additional and unbudgeted costs since September 1 to manage congestion. In addition to adding unscheduled gates and shifts, terminals have been working overtime and through lunch and breaks, and paying truckers to move containers between terminals to load on-dock trains.

PierPass Monthly Transaction Data

The same factors increasing congestion inside the terminals have also driven up truck turn times. Below please find data from November.

Average in-terminal turn time:

  • 58.3 minutes day shift
  • 61.4 minutes night shift
  • Turn times for November include 12 of 13 terminals reporting

For comparison, the average in-terminal turn time in October 2014 was 51.8 minutes for the day shift and 55.5 minutes for the night shift.

In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors. For more information about turn times and how we measure them, please see our Q&A at http://goo.gl/PiOjBp.

Average daily moves per truck for frequent callers* in November:

  • 5 or moves per day: 5%
  • 4 moves per day: 10%
  • 3 moves per day: 29%
  • 2 moves per day: 36%
  • 1 move per day: 20%

*The ports define frequent callers as trucks making one or more moves per weekday. Average moves per day by frequent callers tells us how many moves a truck can make if it is working every day. In November, 15 percent of frequent callers made four or more moves per day.

Gate moves during Peak and OffPeak/exempt shifts:

  • Total Peak gate moves: 369,631 (54%)
  • Total OffPeak/Exempt gate moves: 315,783 (46%)

A gate move occurs when a container enters or leaves a marine terminal via the truck gates. Peak shifts are Monday through Friday, 8:00 a.m. to 5:00 p.m. OffPeak shifts are Monday through Friday, 6:00 p.m. to 3:00 a.m., and Saturday 8:00 a.m. to 5:00 p.m. Saturday night and Sunday shifts, which are not regularly scheduled, are considered “exempt.”

Note: All terminals were closed for the Thanksgiving Day holiday, and for an ILWU meeting on Nov. 6.

To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4.

Terminals Operated 55% More OffPeak and Sunday Truck Gates in November

Marine Terminal Operators (MTOs) at the Ports of Los Angeles and Long Beach in November continued to work additional shifts to alleviate recent congestion. MTOs operated 118 additional gates (shifts open to truck traffic) in November, a 55% increase over the 213 OffPeak gates originally scheduled for the month.

The MTOs have been spending $3 million per week on additional and unbudgeted costs since September 1 to manage congestion. In addition to adding unscheduled gates and shifts, terminals have been working overtime and through lunch and breaks, and paying truckers to move containers between terminals to load on-dock trains.

The terminals have been working with industry partners to relieve a surge in congestion caused by a disruption in chassis availability and other factors.

The MTOs operated 73 additional gates in September, a 30% increase, and 86 additional gates in October, a 33% increase. These additional gates include both OffPeak shifts (Monday through Saturday nights and Saturday daytime) and Sunday shifts, which fall outside the OffPeak program. The regular schedule of gate operation is available at http://www.pierpass.org/wp-content/uploads/2014/10/PierPass-Offpeak-Schedule_10-25-14.pdf. Monthly scheduled totals vary according to the number of business days and holidays in each month. The number of regularly-scheduled OffPeak gates was 245 in September, 258 in October and 213 in November.