PierPass Increase, effective August 1, 2015 (Ports of Los Angeles and Long Beach)

PierPass Increase, effective August 1, 2015 (Ports of Los Angeles and Long Beach)

Source: PierPass, Press Release | June 30, 2015

The West Coast MTO Agreement (WCMTOA) today announced an increase in the Traffic Mitigation Fee (TMF) at the
Ports of Los Angeles and Long Beach, scheduled to take effect on August 1, 2015. The increase will sustain continued
operation of PierPass OffPeak gates amid labor cost increases.

Beginning August 1, the TMF will be increased from $66.50 per TEU (twenty-foot equivalent unit) to $69.17 per TEU or
$138.34 per forty-foot container.

WCMTOA periodically adjusts the TMF based on changes in maritime labor costs. The announced change reflects
increases in labor costs contained in the contract recently agreed to between the Pacific Maritime Association and the
International Longshore and Warehouse Union (ILWU). The TMF was last adjusted in August 2013.

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General Rate Increase from Far East to USA

Please be informed of the following General Rate Increase notification from carrier, effective August 1st, 2015:

General Rate Increase from Far East to USA

Effective Date: August 1st, 2015 (cargo receipt date at origin)
Scope: From all Ports of Loading in Asia
To all USA destinations
USD 480 per 20′ (all types)
USD 600 per 40′ (all types)
USD 675 per 40’HC (all types)
USD 760 per 45′ (all types)

The General Rate Increase will apply to Dry & Refrigerated cargo as well as to special cargo in open tops and flat racks.

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GRI announcement for July 1, 2015

July 1, GRI 2015

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GRI Announcement for June 1, 2015


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LA, Long Beach container volumes roar back

Container volumes at the ports of Los Angeles and Long Beach came roaring back in March, with the largest U.S. port complex reporting a 24 percent increase in container traffic compared to March 2014.

See more of this article: LA, Long Beach container volumes roar back

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CMA CGM Transpacific- Rate Restoration Initiative / May 1st GRI


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Congestion persists at NY-NJ Port

Congestion persists at NY-NJ port
Source: Joseph Bonney, Senior Editor | Mar 27, 2015 6:16PM EDT | Journal of Commerce

Heavy volume from larger ships and carrier alliances is straining capacity at New York-New Jersey container terminals just when shippers are seeking alternatives to congested West Coast ports.
For the last several weeks, port truckers have endured hours-long turn times at one or two of the port’s five major terminals each day. The delays usually follow arrivals of large ships that discharge up to several thousand import containers that must be funneled through truck gates during weekday hours.
Drayage drivers waited in queues reported to be three miles or longer Friday outside Port Newark Container Terminal. PNCT and GCT Bayonne, which also has had intermittent severe congestion, planned to open their truck gates Saturday to catch up on backlogs.
East Coast ports have been deluged with Asian shipments routed to avoid disruptions during recent West Coast longshore contract negotiations. Though West Coast traffic is moving again, New York-New Jersey is still receiving higher-than-normal volumes while the West Coast contract awaits ratification.
Recent delays haven’t been limited to the East Coast’s largest port. The Port of Virginia also is struggling with congestion that reached crisis levels after a four-day shutdown caused by a February snowstorm.
Jeff Bader, president of the Association of Bi-State Motor Carriers and of drayage company Golden Carriers, blamed much of the problem in New York-New Jersey on container-line alliances, particularly the new 2M alliance of Maersk Line and Mediterranean Shipping Co.
He said PNCT has been “overwhelmed” by increased volume from 2M ships, several of which have had to be diverted to the adjacent Maher Terminal. “No matter how hard they work, they can’t catch up,” he said.
Other terminals also are scrambling to deal with revised carrier alliances, the arrival of ad hoc “sweeper ships” carrying cargo that normally would move via the West Coast, and overall volume growth that has accompanied a strengthening economy. New York-New Jersey’s January volume of 463,002 full and empty TEUs was up nearly 8 percent from a year earlier.
GCT Bayonne, formerly known as Global Terminal, recently handled an extra loader that was the first 10,000-TEU vessel to call on the East Coast. The terminal is the only major one in New York-New Jersey that isn’t affected by the 151-foot vertical clearance under the Bayonne Bridge.
Rick Larrabee, director of port commerce at the Port Authority of New York and New Jersey, has noted that larger ships not only have more capacity but tend to discharge a higher percentage of it on a single call at a load-center port.
That creates problems for port terminals with limited acreage for container storage, said Edward Kelly, president of the Maritime Association of the Port of New York.
Some terminals have required some empty boxes to be returned to off-dock depots. This eases pressure on marine terminals but requires truckers to make an extra stop — and sometimes endure an additional long queue.
Truckers are frustrated. Most port drivers are owner-operators who are paid by the trip. Drayage companies with employee drivers are absorbing added costs to pay drivers to wait in line at terminals and empty-container depots.
Edisson Villacis, an owner-operator who hosts Port Driver, a Facebook site where drayage drivers air gripes and swap information about road and terminal conditions, said drivers bear the brunt of delays at terminals.
He said terminals have more volume than they are designed to handle — “When you get 9,000 boxes, three times a week, where are you going to put them?” — and that drivers are fed up.
“Last winter they said it was the weather. Before that, it was the computers acting up. Before that, it was (Hurricane) Sandy. Now they’re saying it’s the congestion on the West Coast. Every time it’s a different excuse,” he told JOC.com.
Under tariffs filed with the Federal Maritime Commission, terminals must pay detention charges when drivers’ turn times exceed certain lengths, usually about two hours. However, detention charges only cover waiting time inside terminals, and don’t include time spent in queues on streets outside terminal gates.
“If they don’t do something, more drivers are going to leave this industry,” Villacis said. He said drayage companies “have the same drivers moving from company to company, but they can’t find new drivers.”
Villacis said congestion limits ability to average more than one or two turns a day, and makes it difficult for drivers to buy new trucks to meet increasingly strict clean-air requirements imposed by the port authority.
In recent days, the Port Driver site on Facebook has featured several photos of accidents involving trucks in and around the port. Villacis said waiting in lines and is rushing to make a delivery isn’t conducive to safety.
“I get paid by the move,” he said on Friday. “Today I’ve been waiting to pick up a container. If I can’t take it out before 4 p.m., I can’t deliver it until Monday, and that means that day’s shot, too.”
The Port Authority of New York and New Jersey and the New York Shipping Association are leading an effort to implement 23 recommendations issued last year by an industry-wide port performance task force.
High on that list a plan to improve the intermodal chassis availability, a daily source of frustration by truckers who must waste time searching for usable chassis or making an intermediate at a certain depot to pick up or deliver a chassis.
The Council on Port Performance, organized in 2014, plans by mid-year to introduce a centrally managed“gray” pool of intermodal chassis that could be interchanged between leasing companies that now operate separately.
Bader said the gray pool is a positive step but that the leasing companies that provide most chassis in the port should make more equipment available now. TRAC Intermodal, which provides more than 60 percent of the port’s chassis, said it has added or refurbished several thousand units in the port in the last couple of years.
New York-New Jersey’s struggle with congestion isn’t likely to end soon, Bader said. “There’s no relief in sight,” he said. “We’re resilient, we’re working through it, but it’s just one thing after another.”
Some have suggested that congestion at terminals could ease as West Coast diversions taper off and New York-New Jersey sees the usual lull a few weeks after the annual shutdown of Chinese factories for the Lunar New Year celebration. Bader disagrees. He said the valleys in cargo volume have caught up with the peaks.
Kelly also said terminals can’t expect a break in cargo volume anytime soon. He said cargo that left Asia before the holiday last month is still arriving, and that new shipments are still being booked for arrival in the next few weeks.
“Soon we’ll have summer goods coming in, and soon after that we’ll have the holiday peak season,” he said. “Really, there’s no longer a slack season for inbound freight.”

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Ships backing up at US West Coast ports after night shifts end

Ships are backing up rapidly at the major West Coast gateways following a decision by employers to stop working vessels at night in order to concentrate on clearing out congested marine terminal yards.

The Marine Exchange of Southern California reported today that 13 container ships were at anchor and awaiting berthing space in Los Angeles-Long Beach. Oakland reported that 7 container ships were at anchor and Tacoma also reported seven container ships at anchor. Although the ports have had vessel backups since last fall, the numbers are now accelerating.

View full Journal of Commerce article here: Ships back up at US West Coast ports after night shifts end

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Update on the West Coast ports

US west coast ports heading for total shutdown as union ups industrial action

As predicted earlier this week, go-slows at US west coast ports have now spread to southern California, with up to 80% of container handling capacity on the coast now in danger of being affected. The west coast terminal employers’ body, the Pacific Maritime Association (PMA), yesterday said that dockworkers’ union the ILWU had begun refusing to dispatch hundreds of operators of yard handling equipment in the Los Angeles-Long Beach port complex, intensifying the already serious congestion in the region. “Many of the qualified, skilled members the ILWU is withholding have more than 1,000 hours of experience operating this equipment. As a result, the PMA estimates that the ILWU’s withholding of skilled workers will leave half of the yard crane positions unfilled unless corrective actions are taken,” the PMA said in a statement. The slowdown comes after six months of negotiations between the ILWU and PMA over a new master employment contract. The previous contract expired at the end of June, and until this week operations had continued as normal – although a combination of heavy pre-Christmas volumes, a lack of container chassis in the terminals and a shortage of drivers had led to congestion in Los Angeles and Long Beach. With the new slowdowns, PMA spokesman Wade Gates said the congested ports could descend into gridlock. “Although the existing congestion has had ripple effects throughout the supply chain, it is the ILWU slowdowns that now have the potential to bring the port complex to the brink of gridlock.

“The ILWU’s orchestrated job actions are threatening the west coast’s busiest ports and potentially billions of dollars in commerce. It is essential that the ILWU return to normal operations, as promised, so that we can continue meaningful negotiations in a productive environment free of union-staged slowdowns that are disrupting terminal operations at our largest ports,” he said. Union sources confirmed that Local 13, the ILWU chapter that covers Los Angeles and Long Beach, had ordered members that operate yard equipment to leave scores of moves in the yards undone. Meanwhile, congestion in Tacoma worsened this week, with a truck queue to the terminals said to be several miles long. In response, a group of shipper and freight forwarder organizations has sent a letter to President Obama requesting his personal intervention to resolve the dispute. It predicted that the costs of the dispute could be as much as $2bn a day, citing recent research by the National Retail Federation “The sudden change in tone is alarming and suggests that a full shutdown of every west coast port may be imminent. The impact this would have on jobs, downstream consumers and the business operations of exporters, importers, retailers, transportation providers, manufacturers and other stakeholders would be catastrophic,” the letter said. It added: “We believe immediate action is necessary, and the federal government’s use of all of its available options would be helpful in heading off a shut-down and keeping the parties at the negotiating table.”

US West Coast waterfront employers accuse ILWU of withholding LA-LB labor

LONG BEACH, California — Fearing that gridlock at the largest U.S. port complex is imminent, the Pacific Maritime Association today blasted the International Longshore and Warehouse Union for withholding skilled labor at Los Angeles-Long Beach. While at least a dozen factors contribute to port congestion in Southern California, “it is the ILWU slowdowns that now have the potential to bring the port complex to the brink of gridlock,” PMA spokesman said Wade Gates said in a release. The ports of Seattle and Tacoma have also been slammed by ILWU actions that began last weekend. “The ILWU’s job actions, which have already crippled operations at the ports of Seattle and Tacoma, now threaten to do the same in Los Angeles and Long Beach. Together these four ports collectively handle nearly 80 percent of all containerized cargo at West Coast ports,” Gates said. Withholding workers that have been trained to operate container-handling equipment in the terminal yards is now the tactic of choice in Los Angeles-Long Beach. Most of the container yards at the 13 terminals in Southern California are filled to capacity. If the yards are not decongested immediately, the next wave of weekly vessel calls scheduled to arrive this weekend will have nowhere to unload their containers. Some terminal operators report that they have been working vessels with only two ship-to-shore cranes rather that four or five. They are devoting most of their skilled equipment operators to the yards in a desperate effort to decongest the terminals. However, the ILWU is reportedly dispatching only 50 percent of the skilled equipment operators that employers are seeking each day.

“As a result, the PMA estimates that the ILWU’s withholding of skilled workers will leave half of the yard crane positions unfilled unless corrective actions are taken,” Gates said. If this condition persists, it will take the terminals at least a week to completely work each vessel. Ships will continue to be forced to sit at anchor awaiting berths. The ILWU on the West Coast has been working without a contract since the previous contract expired on July 1. With no contract in place, the grievance machinery that allows the PMA and the ILWU to seek immediate arbitration on labor issues is not in effect. Employers therefore have no leverage over longshoremen, other than a lockout, to seek relief. Both the ILWU and the PMA pledged on July 1 to continue bargaining in good faith and to maintain normal cargo-handling operations. That was in fact the scenario that unfolded for the ensuing four months. However, the ILWU last Friday began slow-down operations in Tacoma, the PMA stated. The slowdowns began in Seattle over the weekend, and they continued all of this week. The PMA stated that cargo-handling productivity in the Pacific Northwest down 40 to 60 percent. The job actions spread to Los Angeles-Long Beach on the evening shift Tuesday, and have continued non-stop since then, according to the PMA. This development is especially dangerous because the Southern California port complex handles about 70 percent of the container volume on the West Coast. This development could also indicate that the main obstacle to reaching a contract settlement is not at the coast level, but rather in Los Angeles-Long Beach, where the ILWU local is fighting the introduction of automation. In an Oct. 21 ILWU Local 13 electronic bulletin, the union’s largest local charged that the automated machines being installed at the TraPac terminal in Los Angeles were unsafe. “Until the union has determined that the automated operation is safe, it will remain SHUT DOWN!” the bulletin stated. If the automation issue in Southern California is in fact impeding progress toward settlement of a coast wide contract, this could indicate that the ILWU leadership is losing control over its locals. This past week’s job actions in Southern California and in the Pacific Northwest could be pointing in that direction.

The ILWU was not immediately available for comment.




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Effective: November 15, 2014 / GRI is being announced by carriers

Please be advised that a GRI is being announced by carriers with the following tariff increase:



















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