LA/Long Beach Proceeding With Tax

The Long Beach port commissioners were expected to vote on a proposal to implement a $35-per-TEU tax that would apply through 2012. The tax, for every twenty-foot-equivalent unit (TEU), would take effect June 1, 2008. Marine terminal operators would be responsible for collecting the tax from cargo owners. The terminal operators would then turn the money over to the ports, which would place the fees in specially established funds that would be used to finance the replacement and retrofit of the drayage fleet.

Los Angeles was expected to follow the Long Beach plan.

Neither port was expected to consider the driver issue. Under the CAAP, drayage drivers would be required to be employees of companies that had entered into concession agreements with the ports. This would exclude owner operators and, industry groups argue, would seriously limit the supply of drivers and hamper operations. A further anticipated consequence of the driver ban would be an increase in rates for dray moves.

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