CUT Terminal Closing – Last OffPeak Shift is Thursday 7/13; No TMF From 7/17

California United Terminals Inc. has announced it is closing its terminal at the Port of Los Angeles. Its last OffPeak shift will be Thursday night, June 13.

CUT is currently working its last vessel. It has advised that effective Monday, July 17, it will no longer offer an OffPeak shift, but will keep labor during the day to work the gates and yard through the end of July, when it will cease those operations as well.

Beginning Monday, July 17, CUT will no longer collect a Traffic Mitigation Fee on cargo moving during day shifts. For more information, please contact CUT at 310-521-5000.

A new schedule of OffPeak gates beginning July 17 is available at http://www.pierpass.org/wp-content/uploads/2017/07/RollingSchedule-170717_2.pdf and has been posted below.

TMF at Ports of LA and Long Beach to Increase 2.3% on August 1, 2017

LONG BEACH, Calif., June 27, 2017 – The West Coast MTO Agreement (WCMTOA) today announced that on August 1, 2017, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 2.3 percent. The adjustment matches the combined 2.3 percent increase in longshore wage and assessment rates that take effect on July 1.

Beginning August 1, the TMF will be $72.09 per TEU (twenty-foot equivalent unit) or $144.18 per forty-foot container. The TMF is charged only on containers that are moved between 3:00 a.m. and 6:00 p.m. on weekdays. No TMF is due for containers moved during OffPeak shifts (6:00 p.m. to 3:00 a.m. on weekdays or 8:00 a.m. to 5:00 p.m. on Saturdays).

OffPeak provides these regular night and Saturday work shifts to handle trucks delivering and picking up containers at the 13 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 OffPeak shifts.

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 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 OffPeak shifts in 2016 totaled $224.7 million. During that year, the terminals received $182.7 million from the TMF, offsetting about 81 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 13 international MTOs serving the Los Angeles and Long Beach ports. For more information, please see www.pierpass.org.

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

PierPass Will Retain Consultant to Evaluate Extended Gate Options

LONG BEACH, Calif., May 12, 2017—PierPass will retain a transportation consulting firm to evaluate the operational, business and traffic impacts of two alternative models for providing extended hours for truck gates at the marine terminals in the Ports of Los Angeles and Long Beach.

The PierPass Advisory Committee (PPAC) and the Extended Gates Subcommittee met last week to review industry feedback received on two alternative models to the current OffPeak program and to identify key issues for the consultant to investigate.

The May 4 meeting continued a process that began at the Extended Gates Workshop held on Oct. 20, 2016, when the 13 marine terminals that comprise the West Coast MTO Agreement (WCMTOA) met with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, government representatives, port authorities and other stakeholders.

Since then, the PPAC has held a series of meetings to review proposed models and make a recommendation to WCMTOA, which is responsible for deciding on any changes to the OffPeak program.

The three alternatives initially proposed were variable and dynamic pricing, under which the Traffic Mitigation Fee would be higher in times of high gate activity and lower in times of low gate activity; a lower flat fee applying to both day and night moves, with appointment systems to help regulate traffic flow; and port-wide peel-off, in which trucks would operate like taxis in an airport queue. Variable and dynamic pricing was subsequently eliminated from consideration. For more information on these models, see https://goo.gl/Vxi89y.

Since the Oct. 20 meeting, the following steps occurred:

  • On Nov. 3, detailed notes from the Oct. 20 meeting, including pros and cons of each model, were distributed to PPAC members and additional feedback was requested. Those notes became the original basis for the recommendations report being developed by the PPAC.
  • The PPAC met on Dec. 8 to begin developing the recommendations report. Participants reviewed industry feedback received and offered additional points of view. At this meeting, the variable and dynamic pricing model was removed from consideration as it had received no industry support.
  • On Feb. 1, an initial version of the recommendations report drafted by PierPass staff was distributed to PPAC for review and feedback.
  • The PPAC met on Feb. 22 to review the initial draft and collect feedback. At that meeting, participants discussed the need to bring in a third-party consultant to analyze the ideas under consideration, due to the complexity and possible side effects of these changes.
  • On March 15, a revised draft of the report was sent to the Extended Gates Subcommittee for review and feedback. This draft included the recommendation to hire an industry consultant.
  • Committee members submitted input by April 14.
  • On May 4, PPAC and the Extended Gates Subcommittee met to review the recommendations, develop the scope of work to be included in a Request for Proposal (RFP) for consulting firms, and take recommendations for specific consulting firms.

Participants in the May 4 meeting agreed that the consultant should define and maintain a strict schedule of meetings and reports. The group will endeavor to have the RFP released within the next two months. The RFP may request deliverables such as:

  • Evaluation of the ability of a port-wide appointment system to maintain a roughly even split between day and night traffic.
  • Recommendations on how dual transactions (dropping off one container and picking up another during a single truck visit) could be facilitated under each alternative system.
  • Recommendations for handling regulatory, compliance and other challenges to implementing a port-wide peel-off system.

The PierPass Advisory Committee includes more than 25 leaders representing cargo owners, trucking companies, brokers, terminal operators and other stakeholders. The Extended Gates Subcommittee includes 15 additional industry stakeholders who volunteered at or after the Oct. 20 meeting.

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 (TMF) on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts on nights and Saturdays. The TMF also helps pay for the labor and other costs of operating the OffPeak shifts.

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PierPass January 2017 Newsletter

The year ended at the Ports of Los Angeles and Long Beach with terminal yards free of congestion, and with cargo moving efficiently in and out of the terminals and on nearby freeways, during both shifts.

Average in-terminal turn time in December 2016*:
42.9 minutes day shift
46.2 minutes night shift
*11 of 13 terminals reporting

For comparison, the average in-terminal turn time in November was 45.2 minutes for the day shift and 47.2 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 in December:
5 or more moves per day: 7%
4 moves per day: 13%
3 moves per day: 29%
2 moves per day: 33%
1 move per day: 18%

Gate moves during Peak and OffPeak shifts in December:
Total Peak gate moves: 403,107 (58%)
Total OffPeak gate moves: 289,659 (42%)

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 weeknights from 6:00 p.m. to 3:00 a.m. and on Saturdays from 8:00 a.m. to 5:00 p.m.

Note:
All terminals were closed on Sunday, Dec. 25, for the Christmas holiday, and some terminals were closed for one or both shifts on Monday, Dec. 26.

PierPass December 2016 Newsletter

Evaluation of Extended Gate Options Continues

On Dec. 8, members of the PierPass Advisory Committee met to continue the process of evaluating potential alternatives to the current extended gates model used at the Ports of Los Angeles and Long Beach under the OffPeak Program.

The process began on Oct. 20, when the 13 container terminals that comprise the West Coast MTO Agreement (WCMTOA) met in San Pedro with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, government representatives and other stakeholders.

At the Dec. 8 meeting, the PierPass Advisory Committee reviewed the feedback received at the Oct. 20 meeting, and members offered their points of view on the benefits and challenges of the three alternative models. During the Dec. 8 meeting, the first option – variable and dynamic pricing – received no support from Committee members, echoing the cool reception it received at the Oct. 20 workshop. This option has been removed from consideration.

During the remainder of the Dec. 8 meeting, attendees offered detailed feedback on the “flat fee tied to an appointment” and “port-wide peel-off” options.

An initial draft report will now be prepared by PierPass staff, which the Advisory Committee will review and meet to discuss in February. The subsequent revision of the report will go to the Extended Gates Subcommittee for review and feedback in March. PierPass is scheduled to distribute the final draft of the Extended Gates Report and Recommendations in mid-April, and a follow-up to the Extended Gates Workshop has been scheduled for early May.

Average in-terminal turn time in November 2016*:
45.2 minutes day shift
47.2 minutes night shift
*12 out of 13 terminals reporting

For comparison, the average in-terminal turn time in October was 50.2 minutes for the day shift and 51.2 minutes for the night shift. In October, terminals had the additional burden of redistributing Hanjin containers to other terminals, while in November, conditions returned to normal.

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 in November:
5 or more moves per day: 5%
4 moves per day: 9%
3 moves per day: 24%
2 moves per day: 39%
1 move per day: 23%

Gate moves during Peak and OffPeak shifts in November:
Total Peak gate moves: 395,482 (55%)
Total OffPeak gate moves: 317,083 (45%)

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 weeknights from 6:00 p.m. to 3:00 a.m. and on Saturdays from 8:00 a.m. to 5:00 p.m.

Note:
All terminals were closed on Thursday, Nov. 24, for the Thanksgiving holiday, and some terminals were closed on Friday, Nov. 25.

PierPass November 2016 Newsletter

West Coast Terminals Evaluate Extended Gate Options

Terminal operators at the Ports of Los Angeles and Long Beach held an Oct. 20 workshop with industry stakeholders to evaluate potential alternatives to the current extended gates model used at the ports under the OffPeak Program.

The 13 container terminals that comprise the West Coast MTO Agreement (WCMTOA) met in San Pedro with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, government representatives and other stakeholders.

A copy of the presentation used at the workshop is available at https://goo.gl/6FUWKD.

More Terminals Adding Appointment Systems

As of Oct. 17, eight of the 13 container terminals in LA-Long Beach were using appointment systems. On that day, ETS (Everport Terminal Services) began using its system for import loads. More information about the ETS appointment system can be found at http://www.etslink.com.

A ninth terminal, YTI (Yusen Terminal Inc.) plans to have an its appointment system running by March 2017.

Average in-terminal turn time in October 2016:
50.2 minutes day shift
51.2 minutes night shift

For comparison, the average in-terminal turn time in September was 45.1 minutes for the day shift and 47.1 minutes for the night shift. Turn times increased in October as terminals redistributed Hanjin containers to other terminals.

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 in October:
5 or more moves per day: 5%
4 moves per day: 9%
3 moves per day: 24%
2 moves per day: 39%
1 move per day: 23%

Gate moves during Peak and OffPeak shifts in October:
Total Peak gate moves: 396,324 (56%)
Total OffPeak gate moves: 305,960 (44%)

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 weeknights from 6:00 p.m. to 3:00 a.m. and on Saturdays from 8:00 a.m. to 5:00 p.m.

Note:
All terminals were closed for the OffPeak shift on Oct. 6 for an ILWU Stop Work Meeting.

PierPass October 2016 Newsletter

PierPass monthly transaction data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of September 2016.

Average in-terminal turn time:
45.1 minutes day shift
47.1 minutes night shift

For comparison, the average in-terminal turn time in August was 43.4 minutes for the day shift and 45.9 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 in September:
5 or more moves per day: 5%
4 moves per day: 9%
3 moves per day: 25%
2 moves per day: 40%
1 move per day: 21%

Gate moves during Peak and OffPeak shifts in September:
Total Peak gate moves: 390,938 (57%)
Total OffPeak gate moves: 298,630 (43%)

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 all other times and are considered exempt from the Traffic Mitigation Fee.

Note:
All terminals were closed for the both shifts on September 5 for the Labor Day holiday.

PierPass September 2016 Newsletter

PierPass monthly transaction data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of August 2016.

Average in-terminal turn time:
43.4 minutes day shift
45.9 minutes night shift

For comparison, the average in-terminal turn time in July was 44.7 minutes for the day shift and 47.6 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 in August:
5 or more moves per day: 6%
4 moves per day: 9%
3 moves per day: 29%
2 moves per day: 37%
1 move per day: 19%

Gate moves during Peak and OffPeak shifts in August:
Total Peak gate moves: 442,025 (57%)
Total OffPeak gate moves: 335,766 (43%)

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 all other times and are considered exempt from the Traffic Mitigation Fee.

Note:
All terminals were closed for the OffPeak shift on August 4 for an ILWU Stop Work Meeting.

PierPass August 2016 Newsletter

Overall cargo volume at the Ports of Los Angeles and Long Beach rose slightly in July compared to June – up 5.6% in Long Beach and 1.8% in Los Angeles.

After reaching two-year lows in the second quarter, truck turn times rose in July. A couple factors were in play. The terminals were mostly closed on Monday July 4 and Tuesday July 5, leading to a backlog when they reopened on Wednesday July 6. Also, the supply of available chassis tightened in July, as both street dwell times and the number of out-of-service chassis rose.

PierPass monthly transaction data
Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of July 2016.

Average in-terminal turn time:
44.7 minutes day shift
47.6 minutes night shift

For comparison, the average in-terminal turn time in June was 39.6 minutes for the day shift and 42.7 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 in July:
5 or more moves per day: 4%
4 moves per day: 10%
3 moves per day: 27%
2 moves per day: 38%
1 move per day: 21%

Gate moves during Peak and OffPeak shifts in July:
Total Peak gate moves: 365,135 (56%)
Total OffPeak gate moves: 286,161 (44%)

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 all other times and are considered exempt from the Traffic Mitigation Fee.

Note:
Most terminals were closed for the July 4 Independence Day holiday, and all terminals were closed for the ILWU “Bloody Thursday” holiday on July 5.
All terminals were closed for the OffPeak shift on July 14 for an ILWU Stop Work Meeting.

Terminals in Ports of Los Angeles and Long Beach Move Start of Chassis Rule to September 1

LONG BEACH, Calif., Aug. 1, 2016 – The West Coast MTO Agreement (WCMTOA) has extended the implementation date of a new tariff rule for chassis services by one month until September 1. The rule applies to chassis owned by chassis leasing companies that receive services from WCMTOA’s marine terminal members at the Ports of Los Angeles and Long Beach.

The chassis system in the United States has been in flux for several years as shipping lines have moved away from providing the chassis (the truck trailer onto which containers are mounted) as part of their services. Since 2014, users in Los Angeles-Long Beach have arranged chassis directly with the leasing companies.

However, the terminals haven’t been compensated by the leasing companies for basic services provided such as storage space, stacking and unstacking the chassis, and electronic data interchange (which tells the chassis lessors who is using their chassis). Since the chassis leasing companies formed a “pool of pools” in early 2015, the terminals have been working with the leasing companies to address the compensation and services issues.

The new Rule 15 of WCMTOA’s Marine Terminal Schedule No. 1 describes the “On-Terminal Chassis Services” provided and establishes the “Chassis Services Fee.” The rule provides for a $5 fee each time a chassis enters or leaves the terminal, to cover the cost of services. The fee will be collected by PierPass on chassis with loaded or empty containers mounted, but not on bare chassis. MTO Schedule No. 1 is available at http://goo.gl/QihQ1u.

No fees will be charged for chassis that are owned directly by cargo owners or trucking companies, as these owners don’t require the services provided to leasing companies. Neither cargo owners or trucking companies need register their chassis under Rule 15.

Rule 15 was originally scheduled to take effect today, August 1. On Friday, PierPass informed the FMC that it was extending the start date to September 1, giving the leasing companies additional time to implement the change without impacting cargo flow in the ports.

The West Coast MTO Agreement is filed with the Federal Maritime Commission, and comprises the 13 marine terminal operators serving the Los Angeles and Long Beach ports.

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