The Los Angeles harbor commission has approved a 6.2% tariff rate increase for cargo and other items despite concerns from the Pacific Maritime Shipping Association that it could impede an onoging effort to lure cargo back to the Port of LA.
The harbor commission approved both a temporary increase and a permanent one during its recent meeting, though the latter requires the LA City Council’s OK.
Tariff items are periodically reviewed and amended depending on market conditions and to keep up with flation.
The increase was under consideration because of the recent inflation levels. The most-recent increase was a year ago, on Aug. 1, 2022. Prior to that, rates were last increased in 2005.
In May, harbor commissioners delayed a vote on the proposed general rate increase of 6.2% — but unanimously approved the request on Thursday, July 20.
The new rate would go into effect Sept. 1 for cargo, commercial fishing, leased office space, liquid bulk, autos, water and electricity among, other categories. The temporary increase will last for 90 days, and the City Council must approve the permanent one within that time.
The new rate would bring in an addiitional $14.3 million, with container terminals incurring about 90% of that, according to a port presentation during Thursday’s commission meeting.
“We are comfortable with this,” said POLA marketing Director Eric Caris.
But Michele Grubbs, vice president of PMSA , which represents marine terminals and shipping lines on the West Coast, asked commissioners during public comment to consider delaying the vote again, citing the loss of cargo during the 13-month process to reach a tentative agreement between dockworkers and the shipping industry, which only recently concluded.
During that time, POLA lost some of it’s cargo — 10-15%, Executive Director Gene Seroka estimated — to ports on the Gulf and East coasts as companies worried about work disruptions during the protracted negotiations.
“What we want to…
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