Beginning January 17, the Marine terminal operators at the Ports of Los
Angeles and Long Beach will suspend Saturday OffPeak shifts due to declining
cargo volume. The new weekly schedule comes into effect on January 17, 2009.
The last PierPass OffPeak Saturday shift will be on January 10, 2009.
As the economy has slowed sharply, cargo container volume at the two ports
in October and November fell 19 percent compared with the same period in
2007. Labor costs on Saturdays are 1.5 times the base rate, while night
shift labor rates are 1.33 times the base rate.
The OffPeak program, administered by PierPASS, was established in 2005 to
reduce congestion and air pollution in and around the ports. Under the
program, all international container terminals in the two ports established
five new shifts per week (Monday through Thursday from 6 p.m. to 3 a.m. and
Saturday from 8 a.m. to 6 p.m.). As an incentive to use the new OffPeak
shifts and to cover the added cost of the shifts, a Traffic Mitigation Fee
("TMF") is required for most cargo movement during peak hours (Monday
through Friday, 3 a.m. to 6 p.m.).
The marine terminal operators, through an independent consultant, are
analyzing the current costs for the OffPeak program, assessing current
traffic patterns and volume and the impact of ending the Saturday shift. The
evaluation is scheduled to be completed in January. The terminal operators
will then determine whether any modification to the TMF is warranted.