Long Beach O.K.s cargo discount plan
The Long Beach Board of Harbor Commissioners Monday approved a plan to offer carriers discounts on existing and new intermodal cargo.
The plan would see existing intermodal volume, or cargo that enters through Long Beach and is destined for inland U.S. points, rewarded with a 10 percent discount, equivalent to about $4 to $6 per container. The plan also seeks to lure new intermodal cargo with a $20 per TEU discount. New volume is considered any volume that surpasses a carrier’s volume from the previous year.
“I believe that we have an obligation at this moment in history to demonstrate to our customers, partners and clients that we are actively engaged in the business of trade, that we understand the pressures they are under, and that we are responding as best we can,” James Hankla, president of the harbor board, said in a statement.
The port estimates the 10 percent discount on existing cargo will cost it about $11 million in revenue over the year.
The Port of Los Angeles board has already approved a similar cargo inducement retroactive to Jan. 1.