TMF at LA/LB ports to rise by 2.3pc from August 1

THE Traffic Mitigation Fee (TMF) at the ports of Los Angeles and Long Beach will rise by 2.3 per cent to US$72.09 per TEU and $144.18 per FEU, from August 1, according to the West Coast Marine Terminal Operators Agreement (WCMTOA).

The adjustment matches the combined 2.3 per cent increase in longshore wage and assessment rates that was implemented on July 1, a report posted by Business Wire said.

The TMF is charged only on containers that are moved between 3:00 hrs and 18:00 hrs on weekdays. No TMF is levied on containers handled during OffPeak shifts (18:00 hrs to 03:00 hrs on weekdays, and 08:00 hrs to 17:00 hrs 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 programme in 2005 to reduce severe cargo-related congestion and air pollution on roads around the Los Angeles and Long Beach ports. Nearly half of all port truck trips are made during the OffPeak shifts.

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 81 per cent of the OffPeak programme's costs, according to an analysis by maritime industry consultants, SC Analytics.