Shippers slow to sign up for PierPass
More than 1,000 business who import and export through the Port of Los Angeles-Long Beach have registered with PierPass, the program for extended gate hours set up by terminal operators to reduce daytime traffic congestion in the area, program officials said Friday.
Although registrations have doubled within a 10-day period the program is on pace to capture a fraction of port users before the July implementation date.
Doug Tilden, chief executive officer of Marine Terminals Corp., told the Agriculture Ocean Transportation Coalition June 10 that registration has been “slower than expected.” A technology contractor began enrolling companies for PierPass accounts on May 23 and 500 cargo owners had signed up as of June 8, Tilden said.
PierPass recently said it will go live July 23 at all 12 marine terminals with full service night gates from 6 p.m. to 3 a.m. Monday through Thursday and weekend gates from 8 a.m. to 5 p.m. on Saturday. Tilden said terminal operators are looking at the possibility of adding a fifth night gate during the week.
To cover the cost of operating extra shifts and provide an incentive for customers to use the extended gates, the PierPass special purpose entity will assess a $40 per TEU fee ($80 for a 40-foot container) on every container that moves out of the yard during peak daytime hours. Containers that move during off-peak hours or by train through the Alameda Corridor are exempt from the fee.
Companies will be billed through their accounts for peak moves or receive automatic credit for designated off-peak or rail moves. Payments, unlike demurrage charges for late pick up of cargo, will not be accepted at the gate, Tilden said. Shippers are responsible for paying the traffic mitigation fee, but they can register customs brokers and trucking companies to pay on their behalf.
Tilden said PierPass operators don’t know exactly how many cargo owners use the port on a regular basis, but estimated the number to be in the tens of thousands. Officials are urging companies to register as soon as possible to avoid a surge of last-minute registrations, but anticipate a lot of activity near the start date. Shippers have to sign up with PierPass unless they plan to move all their cargo during offpeak periods.
Affiliated Computer Services (ACS), hired to develop and operate the information technology system to monitor the movement of boxes and administer fee collection and rebates, has completed the first round of tests without major problems, Tilden said. A couple of issues related to eastbound intermodal traffic should be easy to correct and will not delay the official start of the program, he said.
Companies can also find their bill of lading, claim their shipment and pay for peak period moves using a credit card or electronic check through the Internet. ACS is stress testing the Web site that will be used for conducting transactions, www.PierPass-tmf.org, to make sure it can handle heavy volumes of payments.
Tilden said setting up an account and entering into a credit agreement is a better method for high-volume shippers because the system automatically debits and credits their account, thus reducing potential cargo delays associated with manually tracking and paying each shipment. Companies that ship more than 2,000 containers through the port each year are being encouraged to set up electronic data interchange (EDI) connections to PierPass.
PierPass will soon file a tariff with a dual rate structure for inbound and outbound cargo, Tilden said. Import shipments will be held until payment is made. Terminals will accept export cargo and load it onto the ship if a container is not claimed prior to loading and instead charge a higher fee. The terminals ultimate recourse for non-payment is to hold future shipments.
Exporters who want to avoid the peak surcharge will have to redesign their schedules, cautioned Dennis Van Wagner of intermodal trucking company RoadLink USA. In order to make the 4:30 p.m. cutoff for loading on a vessel, shippers will have to tender their load on the night shift the day before, he said.
