New York port fees lowered
The New York Shipping Association Inc. (NYSA) said it has reduced its assessment on local containerized cargo moving through the New York-New Jersey port by 11.5 percent.
The per-container charge for cargo moving to or from destinations within 260 miles of the port has been reduced to $100 from $113 for loaded containers. About 65 percent of the port's cargo goes to points within that 260-mile radius.
Several years ago the charge for cargo moving beyond that distance was lowered to $10 per container in order to stimulate the movement of rail cargo through the port. There are also lower rates for empties, transshipped containers, and containers moving in certain trades, for example to Bermuda or Puerto Rico.
| Curto |
'Efficiencies gained by redevelopment and reorganization of our port facilities, increased cargo velocity, and continued growth in volumes justify these reductions,' said Joseph C. Curto, NYSA president. “I think it sends out a very positive message about the port and that we are doing things that we can to lower the cost of doing business here.”
The assessments are used to fund benefit plans for members of the International Longshoremen’s Association. The NYSA negotiates local labor issues with the union, and also helps promote the port and lobby for the industry on a variety of issues.
'By dramatically lowering the cost to move goods in and out of our port, NYSA members are once again demonstrating their commitment to the sustainability of the port and all that encompasses in terms of jobs and economic wellbeing to the New York-New Jersey metropolitan region,' he added.
Curto said the union’s pension plan is “woefully underfunded,” but the NYSA is meeting its funding requirements. The NYSA is able to cut the assessment because of a 16 percent increase in cargo volumes in 2010 to 3 million containers, changes to the ILA's national health care plan reduced NYSA costs, and investments have done well. He said the plans would also benefit from cargo growth this year, though NYSA has conservatively planned for a modest 3 percent increase.
“The more cargo we handle, the more we can keep reducing this assessment,” he said.
Richard M. Larrabee director of the Port Authority of New York and New Jersey's port commerce department, said, “We applaud the NYSA's continuing efforts to reduce the cost of doing business in the port of New York and New Jersey. These actions, combined with the port authority's significant investments in the Port and the planned elevation of the Bayonne Bridge, will further cement our position as the number one gateway for marine cargo on the U.S. East Coast.'
Earlier this month, the port authority canceled a “capital recovery fee” of $57.50 per container on intermodal cargo moving through Port Newark and Elizabeth and the New York Container Terminal on Staten Island.
In its place it has instituted charges of $4.95 per TEU, $1.11 per vehicle, and 13 cents per metric ton on bulk, breakbulk, heavy lift and other special cargo. Those charges will apply regardless of whether the cargo is bound for local or more distant locations. ' Chris Dupin