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.”

One Year In, “PierPass 2.0” Smooths Truck Traffic at Los Angeles & Long Beach Ports

One Year In, “PierPass 2.0” Smooths Truck Traffic at Los Angeles & Long Beach Ports

Ample Appointments Available

LONG BEACH, Calif., Dec. 2, 2019—In the year since PierPass launched an appointments-based system for trucks picking up containers at the Ports of Los Angeles and Long Beach, long late-afternoon queues have been eliminated, and ample appointment opportunities are available for each container. On average, port terminals are offering about a third more appointment slots than there are containers to be picked up.

Terminals have also been working with the trucking community and other stakeholders to add new types of appointment-based services to help truckers achieve greater efficiency, taking advantage of the scalability and flexibility they gained by switching to an appointment-based system.

“Terminals continue offering at least two peak shift and two off-peak shift appointments for each container prior to free time expiration, providing multiple options for each pickup,” said John Cushing, President and CEO of PierPass. “Over the past year, many terminals have also introduced new services. All of this gives the cargo community an enhanced traffic mitigation system, which is running smoothly one year in.”

The OffPeak program was restructured in November 2018. The revised program, informally called “PierPass 2.0,” reduces traffic congestion by spreading cargo movement across two shifts, using appointments rather than the daytime-only Traffic Mitigation Fee (TMF) used in the original OffPeak program that started in 2005. From July 2005 through October 2019, OffPeak has diverted 46.7 million truck trips from Los Angeles weekday daytime traffic.

The revised OffPeak program has achieved the major objectives of the overhaul, including eliminating the long truck queues that previously formed in late afternoons as trucks waited outside the terminals until 6:00 p.m. to avoid the TMF. All 12 terminals report that the late-afternoon queues outside their gates have been eliminated.

Appointments for Exports and Empties

Under the common business rules of the revised OffPeak program, all terminals provide appointments for picking up import containers. Over the past year, many terminals have also begun offering appointments for dropping off export and empty containers. These services make it easier to arrange dual transactions, with a single truck trip dropping off one container and picking up another one.

Of the 12 terminals, eight now offer appointments for exports and for empties.

“One of the advantages we expected from shifting to an appointments-based system was increased flexibility, allowing terminals to continue innovating to improve efficiency and meet evolving market needs,” Cushing said. “We are very pleased and encouraged to see this expectation being achieved.”

Same Day Canceling and Rebooking Capability

In another operational improvement, most terminals are now allowing same-day canceling and rebooking of appointments if an appointment is available. Terminals were able to make this enhancement through software modifications.

Also, one terminal has begun allowing trucking companies to make appointments for picking up containers several days before the ship docks, allowing truckers to better plan their workloads.

“The new appointment-based PierPass system is working, and we are encouraged that the terminals are responding to our recommendations for additional improvements to their appointment systems,” said Weston LaBar, CEO of the Harbor Trucking Association. “We continue working with PierPass and the terminals to make the container pickup and delivery process faster and smoother for truckers and their customers.”

By providing additional shifts during off-peak hours, PierPass has allowed the Ports of Los Angeles and Long Beach to make better use of their infrastructure and investments, allowing cargo volume to grow without negatively impacting traffic conditions.

Prior to the creation of PierPass in 2005, the two ports were struggling to handle cargo volume during the five existing shifts per week, causing severe traffic congestion. Significant capacity remains during the four additional shifts terminals are currently providing per week.

Appointments Remain Ample, No-Show Rate Holds Steady

During the third calendar quarter of 2019, a weighted average of 30% of available daytime appointments and 41% of available nighttime appointments went unused. This indicates that, on an aggregate basis, more than enough appointment slots are being made available by terminals.

When the program began last year, the percentage of no-shows (when the trucker fails to appear for an appointment) averaged between the mid-20s and the low-30s. For both of the past two quarters, no-shows were down to an average of 14% of peak-hour appointments and 15% of off-peak appointments, as terminals continued meetings and follow-up with trucking companies that repeatedly miss their appointments.

More information about the revised OffPeak program is available at https://www.pierpass.org/about/offpeak-2-0/. PierPass is the agent of the West Coast MTO Agreement (WCMTOA), a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach.

FMC Clears PierPass to Start Revised OffPeak Program on Nov. 19

LONG BEACH, Calif., Nov 15, 2018—The Federal Maritime Commission has cleared PierPass to launch its revised OffPeak program of extended gate hours at the Ports of Los Angeles and Long Beach beginning Monday, Nov. 19.

The revised OffPeak program, informally called PierPass 2.0, replaces the original OffPeak congestion-pricing model with a system using appointments to mitigate traffic. It uses a reduced Traffic Mitigation Fee (TMF) across all hours of terminal operation to help offset the cost of operating extended gates.

Cargo owners moving containers into and out of the ports by truck gate and who aren’t already registered with PierPass can do so at https://www.pierpass-tmf.org/.

As previously announced, the current TMF of $72.09 per TEU (twenty-foot equivalent unit) will be reduced to $31.52 per TEU or $63.04 for all other size containers. The TMF will be charged during all shifts on all days.

PierPass set up the OffPeak program in 2005 to relieve severe congestion in and around the ports. It established new night and Saturday shifts during which trucks can move cargo containers to and from the terminals. The new changes to the OffPeak program are being made in response to requests from port users, who seek increased flexibility and a reduction in the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts.

More information about the revised OffPeak program is available at https://www.pierpass.org/about/offpeak-2-0/. PierPass is the agent of the West Coast MTO Agreement (WCMTOA), a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach.

OffPeak 2.0 Begins Next Monday, Nov. 19

In one week, there will be significant changes to the OffPeak program.

When:  Monday, Nov. 19, 2018 subject to the conclusion of applicable Federal Maritime Commission procedures.

The Traffic Mitigation Fee (TMF) rate will be: $31.52 per 20-foot container, and $63.04 for all other sizes of containers.

The TMF will be applicable on all shifts, all days.

Registration: If not already registered in PierPass, register to pay the TMF at www.pierpass-tmf.org.

Payments: Pay the TMF at the same place payments are currently paid, at www.pierpass-tmf.org.

Exempt from the TMF will be:

  • Empty containers
  • Rail intermodal containers
  • Transshipped containers (cargo that arrives at the Port of Los Angeles or Long Beach on one vessel and leaves
    a second vessel without entering U.S. commerce)
  • Domestic cargo
  • Bare chassis

Appointments are required for all import containers.

Appointments are to be made with the terminal using their own terminal appointment system
See http://wcmtoa.org/appointment-systems/.

Common business rules:
As per WCMTOA Marine Terminal Schedule No. 1 and to include (1) two hour appointment windows and (2) the last appointment times of the day will be 3:30 p.m. on the first shift and 1:30 a.m. on the second shift.

FAQs: www.pierpass.org/wp-content/uploads/2018/10/QA-on-New-OffPeak-Program_10-11-18.pdf.

MTO contacts: www.wcmtoa.org/terminals/contacts/.

Revised PierPass OffPeak Start Expected Nov. 19 at Ports of Los Angeles, Long Beach

The members of the West Coast MTO Agreement (WCMTOA) today said the revised OffPeak program for providing extended gate hours at the Ports of Los Angeles and Long Beach—informally known as PierPass 2.0—is expected to start on Nov. 19, subject to the conclusion of applicable Federal Maritime Commission procedures.

In April, PierPass announced it will overhaul the model used by its OffPeak program for truck traffic mitigation at the two adjacent ports, replacing the current congestion-pricing model with an appointment-based system that uses a single flat fee on both daytime and nighttime container moves.

For most port users, the new system won’t require new procedures, but rather an adjustment to current procedures. Most companies moving containers through the ports are already registered with PierPass to claim containers moved during Peak (weekday daytime) hours. Under the revised system, they will claim containers moved at any hour.

Because nine of the 12 terminals at the two adjacent ports already use appointment systems, most trucking firms serving the ports are already using these systems. The remaining three terminals, all operated by SSA Marine, are planning to launch their own appointment systems in advance of the implementation. As part of the program update, the terminals have also agreed on common appointment windows and common last appointment times for each shift. As the revised program moves forward, the terminals will consider further common rules and processes to enhance truck efficiency at the ports.

Cargo owners moving containers into and out of the ports by truck gate and who aren’t already registered with PierPass can do so at https://www.pierpass-tmf.org/.

As previously announced, the current Traffic Mitigation Fee of $72.09 per TEU (twenty-foot equivalent unit) will be replaced by a new flat fee of $31.52 per TEU; the rate for all other size containers will be a flat fee of $63.04. The TMF charged only on Peak cargo moves will be replaced by a fee that is constant across all hours of operation. Other than that change, the same types of cargo will pay the fee.

The changes to the OffPeak program are being made in response to requests from port users, who seek increased flexibility and a reduction in the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts.

A Q&A about the revised OffPeak program is available at https://www.pierpass.org/wp-content/uploads/2018/10/QA-on-New-OffPeak-Program_10-11-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach. For more information and to track continuing developments, please go to https://www.pierpass.org/about/extended-gates-review-process/.

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PierPass Members Add Common Business Rules to Terminal Appointment Systems

LONG BEACH, Calif., April 30, 2018—The members of the West Coast MTO Agreement (WCMTOA)—the 12 marine terminal operators at the Ports of Los Angeles and Long Beach—have agreed to add common business rules for the appointment systems that will become part of the OffPeak program later this year. Subject to regulatory approval, the revised OffPeak program, which is administered by PierPass, is expected to begin in August.

The terminals agreed to add the common business rules—operational procedures that all terminals will follow—in response to requests from trucking companies and other stakeholders.

The new common business rules include an appointment window—the time span between the earliest and latest times a truck can arrive for an appointment, including grace periods—of two hours for all appointments. In addition, all terminals agreed that their last appointment times of the day will be 3:30 p.m. on the first shift and 1:30 a.m. on the second shift. The new business rules will take effect when the new program begins, and are expected to increase efficiencies for users when planning appointments at more than one terminal.

PierPass also clarified that the new system, which some have referred to as “PierPass 2.0,” won’t require appointments for individual import containers being picked up from peel-off piles. Trucking companies and cargo owners will continue to arrange for a single time window to pick up entire blocks of containers going to the same company or destination from a single container terminal.

Earlier this month, PierPass announced it will overhaul the system used by the OffPeak program for truck traffic mitigation at the two adjacent ports, replacing the current congestion pricing model with an appointment-based system that uses a single TEU-based flat fee on both daytime and nighttime container moves. The change has been welcomed by port leadership and by trucking industry associations as a way to improve flexibility and reduce the bunching up of trucks in late afternoons.

PierPass is scheduling a combined meeting of the PierPass Advisory Committee and Extended Gates Subcommittee in October. This will provide an opportunity for stakeholders to provide feedback and suggestions after implementation of the new system.

A Q&A about the revised OffPeak program is available at www.pierpass.org/wp-content/uploads/2018/04/QA-on-New-OffPeak-Program_4-16-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. For more information and to track continuing developments, please go to www.pierpass.org.

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