Building on President Joe Biden’s announcement yesterday of sweeping action to strengthen critical supply chain capacity at the Ports of Los Angeles and Long Beach by moving to 24/7 operations, Congressman Alan Lowenthal (CA-47), today, sent a letter to Pierpass CEO John Cushing proposing further reforms to ease congestion and encourage the more efficient movement of goods at the LA/LB port complex.
Pierpass is a not-for-profit partnership among the LA/LB marine terminal operators created in 2005 to ease truck congestion, improve security and reduce emissions by spreading the movement of containers in and out of terminals across day and night shifts. To pay for terminal labor to accommodate nighttime hours, shippers would pay a reduced rate to move goods at night, thus incentivizing nighttime moves. In 2018, Pierpass moved away from this original incentivization fee schedule to a flat fee schedule.
In the letter, the Congressman calls on Pierpass to return “…to the economic incentive model that was at the core of the original PierPass Program, as an essential measure to fully achieve the benefits of the expansion to 24/7 operation advocated by President Biden….Restoring these incentives can increase efficiency and productivity during this critical time…. Supply and demand is driving our current congestion, and we can use these forces to address our supply chain choke points.”
The letter also acknowledges that Pierpass has made significant contributions to the quality of life in the Congressman’s district, and emphasizes that by addressing the fee structure issue, the organization could now help address the current supply chain system challenges.
“Just as I have done for the past 20 years,” Congressman Lowenthal said, “I will continue to engage at every level—from the private sector to local, state and federal government entities–and explore every option which can improve the flow of goods through the LA/LB port complex. This is critical not just to our local economy, but to the economy of our nation as a whole. Our actions can build on President Biden’s recent steps to lower costs not just for countless businesses, but also for all American consumers. We must explore any option that offers a chance of eliminating bottlenecks and improves the capacity, efficiency, and resilience of our supply chain system.”
Click here to read the full text of the letter.
About Congressman Lowenthal
Congressman Alan Lowenthal represents the cities of Long Beach, Lakewood, Signal Hill, Avalon, Los Alamitos, Rossmoor, Cypress, Westminster, Garden Grove, Buena Park, Anaheim, Midway City and Stanton in California’s 47th Congressional District. He can be followed on Facebook, Twitter, or his website.