The Port of Long Beach plans to provide an incentive payment to ocean carriers in hopes of attracting more intermodal rail cargo to the port.
Beginning Aug. 1, shipping lines will receive $10 for every additional container they move by rail through Long Beach between Aug. 1, 2012, and July 31, 2013, compared to the previous one-year period.
Cargo that moves by rail is generally considered discretionary freight, and the port wants to steer more discretionary cargo though Long Beach. “Shippers have options on how to route their cargo, and we want to make sure we give them the right reasons to move through Long Beach,” said J. Christopher Lytle, executive director.
The Board of Harbor Commissioners also approved an incentive program to encourage ocean carriers to deploy their newest, largest vessels in services to Long Beach. The port on Aug. 1 will cap its daily dockage fees at $8,641 for ships longer than 1,132 feet.
The new generation of mega-ships now calling in Southern California exceed 1,132 feet in length. Without the cap, vessel operators would pay more than $11,000 a day in dockage fees.
In addition to being more cost-efficient, the large new ships emit fewer harmful emissions than older-generation vessels. The port also is offering an additional incentive of up to $6,000 to vessel operators that participate in the port’s Green Ship Award Program by deploying greener vessels in service to Long Beach.
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