Rising PierPass TMF in 2021: What You Need to Know
August 6, 2021 • 2 minutes read
Staff Content Writer
The West Coast MTO Agreement (WCMTOA) announced on June 31 that the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 2.2 percent on August 1, 2021. The adjustment corresponds to the 2.2 percent increase in longshore wage and assessment rates that goes into effect in early July.The TMF will rise to $33.47 per twenty-foot equivalent unit (TEU) beginning August 1 and $66.94 for all other container sizes. According to the WCMTOA, this increase of the TMF is necessary to help offset the cost of operating extended gate hours, especially during the times of port congestion. The TMF is imposed on most containers except for a few exemptions. These exempts include empty containers, import/export containers that transit the Alameda Corridor, transshipment containers, empty chassis, and bobtail trucks. The net costs incurred by the terminals to operate the off-peak shifts last year totaled $276 million, according to an analysis by maritime industry consultants SC Analytics. The terminals received $235 million from the TMF in 2020, covering approximately 85 percent of the OffPeak program’s costs.Even though the reasons for the rise of TMF are understandable, people may need to rethink how they do business in order to reduce any cost burdens associated with the use of these ports.
The Flexibility That GoFreight OffersThe rise in TMF may have an impact on your freight forwarding workflow. For example, your freight forwarding software may not even allow you to change the pier pass TMF within the system. You will need to spend extra time contacting your software’s customer service for additional assistance. However, if you are using GoFreight, an all-in-one freight forwarding software, you can change the pier pass TMF directly in the system. Feel free to contact us to schedule a free demo to learn how GoFreight can even help accelerate your business growth.
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