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July 28th, 2005

Delays Continue in LA / Long Beach TMF Delayed, Again

Importers and exporters who utilize the ports of Los Angeles-Long Beach have received another one-day reprieve from paying the new Traffic Mitigation Fee (TMF).

Collection of the fee -- $40 per TEU or $80 per FEU -- was to originally begin on Monday July 25th, but PierPass, the extended-gates program, has delayed the start, again, until the Thursday day shift in order to perform last-minute fixes on its computer system.

In the meantime, service delays and labor shortages continued during the off-peak hours, discouraging truckers from utilizing the late gates.

PierPass reported that terminals processed 7,500 truck moves during the 6 p.m.-3 a.m. Monday night shift. That represents 29 percent of a typical day's 26,000 trucks in LA-Long Beach. The goal of PierPass was to handle 20 percent of the ports' volume in the off-peak hours after the first 12 months of operation.

PierPass said truck traffic was strong Tuesday night as well, although the tabulation will not be complete until later today. However, lighter-than usual traffic on the I-710 freeway Wednesday morning indicates that Tuesday night's volume relieved pressure on Wednesday's day gates.

Cargo interests and truckers reported that shortages of experienced longshore marine clerks caused delays at some terminals during the off-peak gates. There were also sporadic incidents of poor communication between some terminals and truckers.

Richard Coyle, vice president of Devine Intermodal, said one terminal told his drivers appointments weren't necessary, but when the drivers showed up at the gate, they were told they in fact needed an appointment.

There are plenty of longshoremen in LA-Long Beach, but some terminals have had to rely on part-time workers, known as casuals, to staff the off-peak gates. It can take an hour or longer to train a marine clerk who is not familiar with how a particular terminal operates.

Terminal operators are urging truckers, ocean carriers, customs brokers and shippers to communicate more closely during the off-peak gates in order to resolve problems and avoid delays.

FMI International continues to monitor this program very closely and will do everything within our control to expedite freight. Please be advised, until the PierPass program and the terminals improve the level of service during the off-peak hours, shippers should expect delays. These delays may also lead to additional costs, such as demurrage.

If you have any questions, please feel free to contact FMI at 732-750-9000.