PierPass

In July, as you may be aware, Southern California Terminal operators will implement PierPass. This is a program that is intended to encourage the use of the night and Saturday gates in order to move more cargo during those times.

There is a "traffic mitigation fee", TMF, assessed on all traffic moved through the marine terminal gates during peak hours. Peak hours are defined as between 3:00 a.m. and 6:00 p.m. Monday through Friday. The charge will be $40 for a 20-foot container and $80 for a 40-foot container. The implementation of these charges and the start of the program will be Saturday, July 23, 2005.

Off-peak hours, where there will be no charge for the movement of containers, will be from 6:00 p.m. at night to 3:00 a.m. the following morning, Monday through Thursday, and Saturdays from 8:00 a.m. to 6:00 p.m. Anything picked up or delivered on Friday day will be assessed a charge and there is no terminal work Friday night.

The beneficial cargo owner (BCO) is responsible for the payment of the fee. The beneficial cargo owner must register with PierPass. If you wish to have extended credit, you must file a credit application; otherwise, payment must be made in advance of picking up any containers during peak hours by credit card or debit card. You may register at www.PierPass.org.

We will be making an attempt to pick up as much cargo as possible for those customers who wish us to accomplish this during the off-peak hours. However, we have no idea how much of the cargo can be picked up at night, at this time, as we don't have a firm indication of what percentage of our owner-operators will work strictly the night shift.

In addition, you need to be aware that both ports have reduced free time to four (4) days from the time the container is unloaded from the ship. They have also increased the demurrage charges for cargo staying on the docks beyond the 4-day time frame and they have also increased the detention charge fee for containers and chassis held over the 5-day free time.

Because of the uncertainties of night labor availability-drivers supporting PierPass, port productivity during night hours, and the requirement to restrict driver hours to 14 hours maximum, 10 hours driving, it is conceivable that both demurrage and detention will be a factor. Because of all the uncertainties listed above, demurrage and detention assessments will be for the account of the beneficial cargo owner.

Remember, if we are going to have to pick up containers any time during peak hours, all companies responsible for import or export container traffic must register as an account on the PierPass web site. If you do not want to pay in advance, you need to file for credit with PierPass.

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