SCDigest editorial staff

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PierPASS, the organization created by marine terminal operators to reduce congestion and improve air quality in and around the Ports of Los Angeles and Long Beach, announced this week that registration for its Offpeak program has exceed 1000 companies since it began May 23, with the July 23, 2005 deadline for registration right around the corner.

Under the OffPeak program, starting July 23 all international container terminals at the Los Angeles and Long Beach ports will start five new shifts on nights and weekends. From that date, a Traffic Mitigation Fee will be required for cargo movement through the ports during peak hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.), with certain exceptions. Only registered users will be able to pay this fee.

OffPeak is an attempt to use market mechanisms in the form of differential pricing to transition container movements to other times of the day and week.

The fee will be $40 per TEU (20-foot equivalent unit), or $80 for all containers larger than 20 feet. PierPASS will not assess a fee for empty containers and chassis, domestic containers, or transshipment to other ports. Nor will it assess a fee for intermodal containers that depart or arrive via the Alameda Corridor for import or export. The fees received will be in part used to pay the higher labor and operating costs for the off shift port operations.

Will the OffPeak program succeed in evening out container flow? What are the pros and cons? Let us know your thoughts.