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Dear OffPeak Users:
Based on recent feedback from our customer base, PierPASS Inc.
today announced a modification to the schedule for the Traffic
Mitigation Fee (TMF) adjustment. The new effective date for the
rate modification is Monday, April 24. The schedule change will
provide an additional three weeks for members of the goods
movement industry to adjust their rate structures.
As provided in our e-mail announcement on March 17, the new TMF
rate assessed on container traffic using marine terminal day
gates under the OffPeak program will be $50 per TEU (twenty-foot
equivalent unit) or $100 per FEU (forty-foot equivalent unit or
larger), an amendment from the program's original $40 per TEU
rate. The TMF adjustment comes after the first regular review
of program costs since OffPeak was launched in July 2005. The
review was conducted by the independent industrial engineering
firm, The JWD Group.
To assist you with any immediate questions you may have
regarding the adjusted TMF rates, a Q&A is attached below. A "TMF
Adjustment Overview" document is also available on the PierPASS
website at www.pierpass.org.
Thank you for your understanding in this matter and for your
continuing support of the OffPeak program.
Sincerely,
Bruce Wargo
President and CEO
PierPASS, Inc.
Traffic Mitigation Fee
Adjustment - Questions & Answers
What is the Traffic Mitigation Fee?
The Traffic Mitigation Fee (TMF) is a financial assessment
administered through PierPASS Inc., a not-for-profit company, on
loaded non-intermodal cargo containers entering or exiting the
marine terminal gates at the Port of Los Angeles and the Port of
Long Beach during the designated peak hours of 3:00 a.m. to 6:00
p.m., Monday through Friday.
What is the Traffic Mitigation Fee used for?
Proceeds from the TMF (minus overhead costs of running the
program) are allocated by PierPASS to finance the labor and
operational costs of the OffPeak program gates, weeknights
Monday through Thursday and Saturday at both the Port of Los
Angeles and the Port of Long Beach.
OffPeak is an after-hours cargo shipping program administered by
PierPASS that provides a financial incentive for cargo owners to
move cargo at night and on weekends. The program was initiated
to reduce truck traffic, alleviate port congestion and cut
pollution from idling trucks during peak daytime traffic hours.
Who pays the Traffic Mitigation Fee?
The TMF is paid for by beneficial cargo owners (shippers,
consignees or their agents). The fee is not assessed against
containers subject to the Alameda Corridor Transportation
Authority (ACTA) fees, empty containers and chassis, domestic
containers or trans-shipments. Trucking companies and water
carriers are not responsible for TMF payments.
How much is the Traffic Mitigation Fee?
As of April 24, 2006, the TMF will be set at $50.00 per TEU
(twenty-foot unit equivalent), or $100 per FEU (forty-foot
equivalent unit or larger). At the initiation of the OffPeak
program, the TMF rate was set at $40.00 per TEU. However, as a
result of financial information gathered through the program's
first audit, the fee required an adjustment to meet the costs of
continuing the after-hours traffic program.
Why is the TMF being increased?
Based on findings reported in an audit of the OffPeak program's
operation by the JWD Group, an independent industrial
engineering group, the actual TMF needed to fund the OffPeak
program is higher than the originally established cost of $40.00
per TEU. The current adjustment to $50.00 per TEU reflects a
reality in which PierPASS is moving to better cover the costs of
the program while simultaneously supporting an increase in
efficiency in the terminal operations.
Is PierPASS going to make a profit from this new fee structure?
No. PierPASS is a not-for-profit company. The mission of the
PierPASS is to administer a financially balanced and fully
sustainable program. The upgrade in the TMF will allow this
goal to be achieved.
Was this fee increase planned?
The plan has always been to adjust the TMF up or down as needed
to cover the cost of the program and ensure its operational
success. An independent review was planned to assess the
financial situation of the program after the first quarter of
operation. This review showed that an adjustment of the TMF was
needed to keep OffPeak viable and successful. PierPASS will
continue to review the financial structure of the program on a
regular basis.
Has the OffPeak program been successful so far?
Yes. OffPeak has wildly exceeded expectations and promises to
continue benefiting the import-export industry in Southern
California, making growth more efficient and more manageable.
Within the first six months of operation, night gate and weekend
gate use for the two marine terminals skyrocketed to between 30
percent and 35 percent of all marine terminal gate activity. By
way of comparison, our initial target was a shift of only 15 to
20 percent in the first year.
On December 10, PierPASS reached its million-truck milestone.
In less than five months, one million trucks hauling shipping
containers into or out of the marine terminals at Los Angeles
and Long Beach had been removed from daytime traffic, reducing
traffic congestion and alleviating port congestion.
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PierPASS Customer Service Numbers
1-877-863-3310 (from inside the United States)
1-973-355-3575 (from outside the United States) |
