Federal Maritime Commission reviewing ‘PierPass 2.0’

Agency has 45 days to study changes planned by Los Angeles and Long Beach terminals.

   The Federal Maritime Commission said it is reviewing “PierPass 2.0.”
   The 12 terminals that belong to the West Coast Marine Terminal Operators Agreement (WCMTOA) said earlier this week that the revised OffPeak program for providing extended gate hours at the Ports of Los Angeles and Long Beach — informally known as PierPass 2.0 — is expected to start Nov. 19, subject to the conclusion of applicable FMC procedures.
    PierPass 2.0 would make two major changes:
   • In the past, terminals charged a traffic mitigation fee during the daytime (currently $72.09 per TEU) to shippers who had truckers pick up or deliver containers at the terminals during the day in order to encourage use of the terminals at night and reduce traffic congestion on surrounding roads. WCMTOA is now planning to charge a flat fee of $31.52 per TEU or maximum of $63.04 no matter when a trucker comes to a terminal. Empty containers, intermodal rail cargo, domestic cargo and transshipped cargo are exempt from the fee.
   • In order to reduce traffic congestion, trucks retrieving and delivering containers will be required to have appointments. Nine of the 12 terminals currently have appointment systems. Under the revised PierPass 2.0, SSA Marine, which operates three terminals, also will start requiring appointments.
   WCMTOA first submitted plans for PierPass 2.0 to the FMC April 13, 2018. The commission asked for additional information on May 24, 2018, and WCMTOA provided it on October 5.
    The FMC now has 45 days to review that additional information. FMC said the revised PierPass agreement will go into effect on Nov. 19, unless it determines under the Shipping Act “that the agreement is likely, by a reduction in competition, to produce an unreasonable reduction in transportation service or an unreasonable increase in transportation cost.” The commission then may seek an injunction in federal court to enjoin the operation of the agreement or amendment.