California Lawmakers Attempt to Implement Container Fee

September 1, 2006 by Splatty  
Filed under Misc Logistics, Seafreight

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California lawmakers took the first step in advancing a bill that would impose a fee of $30 per TEU and $60 per FEU for every container that transits the ports of Los Angeles and Long Beach. The bill has now been passed to the senate for approval. If approved, the bill will then go to Governor Schwarzenegger’s office where he will have 30 days to either veto or pass the bill.

Proceeds of the fees would go to support infrastructure developments, security measures, and anti-pollution activities.

The bill charges $30 for each container unloaded at the ports of Long Beach and Los Angeles — a complex responsible for 40% of the country’s port cargo. A third of the estimated $500 million a year the fee would generate would be earmarked for improving infrastructure to handle the tripling of cargo expected by 2020.

Another third would be spent buying equipment or hiring workers to improve security; only 2% of containers moving through the ports are inspected.

The final third would go to the California Air Resources Board to reduce truck, ship and rail pollution associated with the ports, which are the largest source of air pollution on the South Coast. source – LA Times

If this bill is passed it could drive additional traffic away from the Southern California ports to OAK and SEA. Especially for containers terminating in Los Angeles since they already incur a PierPass fee of $50 per TEU and $100 per FEU for passing through terminal gates during “peak hours”.

More bad news for West Coast shippers: Container tax bill passes State Assembly

Schwarzenegger Vetoes Fee On Cargo Containers

Matson to Raise Rates to Hawaii

Port of Los Angeles to pay for containers?