Introduction
The Ports of Los Angeles and Long Beach are among the busiest container ports in the world, handling a significant volume of cargo entering the United States. To address congestion issues at these ports, the PierPass program was established. Understanding PierPass, its goals, and how it impacts your shipping costs is essential for businesses importing and exporting goods through these major gateways. This guide covers five key things you need to know about PierPass.
What is PierPass?
PierPass is a program created by the West Coast Marine Terminal Operators Agreement (WCMTOA) to reduce congestion at the Ports of Los Angeles and Long Beach. It aims to incentivize shippers to move cargo during off-peak hours, thereby relieving daytime traffic and improving port efficiency.
5 Key Things You Need To Know About PierPass
- The OffPeak Program:
- PierPass’s core strategy is the OffPeak program.
- This program encourages cargo movement during nights and weekends to alleviate daytime congestion.
- Marine terminals offer extended gate hours during off-peak times.
- The Traffic Mitigation Fee (TMF):
- To fund the extended gate hours, a Traffic Mitigation Fee (TMF) is applied to most containers moving during peak hours (daytime, weekdays).
- This fee incentivizes shippers to utilize the OffPeak hours and avoid the surcharge.
- The TMF is charged per TEU (Twenty-foot Equivalent Unit) or FEU (Forty-foot Equivalent Unit).
- Impact on Shipping Costs:
- The TMF directly impacts your shipping costs.
- Shipping during peak hours will incur the TMF, adding to the overall expense.
- Planning shipments to utilize OffPeak hours can significantly reduce these costs.
- Exemptions and Special Cases:
- Certain types of cargo or movements may be exempt from the TMF.
- Empty containers, some transshipments, and specific types of cargo might qualify for exemptions.
- It’s important to verify if your shipment is eligible for any exemptions to avoid unnecessary fees.
- Strategic Planning is Key:
- Understanding PierPass allows for strategic planning to minimize costs and avoid delays.
- Consider these strategies:
- Work with your drayage provider (trucking company) to schedule pick-ups and deliveries during OffPeak hours.
- Factor the TMF into your overall shipping budget.
- Negotiate with your suppliers to adjust shipping schedules.
- Consolidate shipments when possible.
Conclusion
PierPass is a crucial aspect of operating at the Ports of Los Angeles and Long Beach. By understanding its OffPeak program, the TMF, and the potential for exemptions, you can strategically plan your shipments, minimize costs, and improve the efficiency of your supply chain. Keeping up-to-date with any changes to the PierPass program is essential for continued success.
FAQs
- Where can I find the most up-to-date information on PierPass fees and regulations?
- Visit the PierPass website.
- Does PierPass eliminate port congestion entirely?
- While PierPass has helped to alleviate daytime congestion, it hasn’t eliminated it completely. Other factors contribute to port congestion.
- What is the best way to minimize PierPass fees?
- The best way is to schedule the drayage of your containers during the OffPeak hours that are offered.