Officials from the Port of New York and New Jersey briefed the Federal Maritime Commission on the port’s new Terminal Information Portal System, which allows port users to check container availability and export booking status, at a meeting held Dec. 16 (here). FMC commissioners applauded the port for its collaborative efforts and focus on transparency. FMC staff also briefed the commissioners on their continuing review of the PierPASS program at the Ports of Los Angeles and Long Beach. The review is the result of both FMC's duty to review port agreements and direct complaints from port stakeholders about PierPASS operations, costs, and quality of services, said the FMC release.
The Port of Long Beach will consider a change to its "free time" policies as a way to increase cargo flow speeds, the port said in a news release (here). Currently, the port allows cargo containers to remain on the dock for up to four days of "free time," after which terminals are charged storage fees, it said. A possible change of free time to up to three days is hoped "to encourage terminals to more consistently operate at night, moving imports off the docks faster," it said. Container backlogs at the terminals lead to "extra handling that makes the process slower for longshore workers, the shippers that depend on them, truckers who move the goods, and ultimately the consumer,” said Port of Long Beach CEO Jon Slangerup. “This approach will keep the system more fluid and help avoid congestion.” Port staff will work with stakeholders to develop a proposal to change free time to six shifts, the equivalent of as few as three days, for consideration by the Board of Harbor Commissioners," it said. Free time policies are among several issues the Federal Maritime Commission is watching in an effort to improve port congestion problems (see 1504140014).
The Federal Maritime Commission voted to request more information on plans for an extended hours program at the Port of Oakland (see 1508240005), the agency said on Sept. 2 (here). "The Commission has concerns about the program being proposed based on an initial review and comments received from various stakeholders who would be impacted by the program," said the FMC. The program, called OakPass, is modeled after the "OffPeak" PierPass program at the Ports of Long Beach and Los Angeles. The National Industrial Transportation League and other industry commenters recently asked that more details of the program be made public before the FMC gives approval (see 1508200011). "The Commission believes additional transparency by the parties will greatly aid in its analysis of this important issue," said the FMC. "After the agreement parties have fully responded to the information request, a new 45-day review period will begin. Commission staff will continue their economic review to determine whether the proposed amendment is likely, by a reduction in competition, to produce an unreasonable reduction in transportation service or an unreasonable increase in transportation cost."
The container terminal operators at the Port of Oakland plan to begin collecting an Extended Gate Fee (EGF) of $17 per twenty-foot equivalent unit (TEU), or $34 on a forty-foot container under the new OakPass program, OakPass said in a news release (here). "The EGF will be assessed on loaded import and export containers entering or exiting the terminals during Peak hours, defined as Monday through Friday, 7:00 a.m. through 6:00 p.m.," it said. The operators recently requested Federal Maritime Commission approval for the program, which is modeled after the "OffPeak" PierPass program at the Ports of Long Beach and Los Angeles (see 1508200026). “After spending well over a year evaluating options including night gates, we determined that adding a Saturday gate is the most practical and cost-effective method to increase capacity in a way that meshes with availability of truck drivers and longshore workers and serves the entire supply chain,” said John Cushing, president of PierPass and the new OakPass company that will manage the collections.
The Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase beginning on Aug. 1, said PierPass, a not-for-profit company owned by the ports' marine terminal operators (here). The increase, from $66.50 per TEU (twenty-foot equivalent unit) to $69.17 per TEU or $138.34 per forty-foot container, "will sustain continued operation of PierPass OffPeak gates amid labor cost increases," said PierPass. The change to the TMF reflects the increased labor costs related to the agreement between the International Longshore and Warehouse Union and Pacific Maritime Association (see 1505260013), it said.
The International Longshore and Warehouse Union on May 22 gave final approval to a new five-year labor agreement for West Coast ports, after union members voted 82 percent in favor of ratification, it said in a press release (here). The new agreement, agreed in February between the ILWU and Pacific Maritime Association following months of slowdowns on the West Coast (see 1502230002), expires on July 1, 2019. The ILWU ratified its last labor contract in 2008 with 75 percent voting in favor, said the ILWU.
The recent Federal Maritime Commission report on free time and demurrage fees shows that the agency already has enough information to take action, said dozens of industry groups in an April 27 letter to FMC Chairman Mario Cordero (here). The agency's report, released earlier this month (see 1504140014), outlined several paths of action, but asked for additional industry input. While the report provides a "good foundation," the FMC should "take action to address these issues," said the groups, including the National Customs Brokers and Forwarders Association of America and the Consumer Electronics Association.
The Federal Maritime Commission released the transcript from the April 13 agency meeting that included discussion of detention and demurrage fees (here). The FMC released a related report on the subject earlier this month (see 1504140014).
The Federal Maritime Commission will meet on April 13 at 10 a.m. to discuss "rules, rates, and practices relating to detention, demurrage, and free time for containerized imports and exports moving through selected U.S. ports" and other issues, the agency said (here). The meeting will be a closed session, the agency said.
As U.S. ocean commerce continues to expand, there's a growing need to fund improvements to port infrastructure, Federal Maritime Commission Chairman Mario Cordero told the Congressional Ports Caucus, said a FMC press release (here). The recent problems with port congestion point to insufficient funding and the need for use of the Harbor Maintenance Trust Fund, he said. "The thousands of containers that are discharged at one time from such vessels presents a huge challenge to terminal operators and port drayage truckers," he said. "The difficulties in the handling of such container volumes also exacerbates problems caused by insufficient chassis availability, trucker shortages, and lack of adequate investment in port-related infrastructure." There's been complaints to the FMC across all sectors, including spoilage of whole perishable shipments that could not be loaded in time for export, he said. The FMC "is doing what it can to help resolve congestion issues, including its grant of a request by the Ports of Los Angeles and Long Beach for expedited review of an amendment to their cooperative working agreement permitting them to address the systemic causes of port congestion," he said.