San Pedro —On Nov. 7, the Los Angeles Board of Harbor Commissioners approved an incentive program to reward shipping lines that bring new container business to the Port of Los Angeles in 2014.
The Ocean Common Carrier Incentive Program adds to the advantages of moving cargo through the port.
The board also established a two-member ad hoc committee on port industrial and economic development dedicated to identifying and advancing economic practices. Vice President David Arian and Commissioner Patricia Castellanos will serve on the ad hoc committee.
Under the incentive program, an ocean carrier will earn $5 per 20-foot equivalent unit (TEU) for each incremental container it ships through the port in calendar year 2014. The rate jumps to $15 per TEU for all TEUs, if a carrier’s container volume grows by 100,000 or more units for the same 12-month period.
The baseline for measuring the increased volume will be the total number of containers each carrier moved through the port in calendar year 2013. Carriers will receive their incentive in a lump-sum payment in early 2015. Port staff will monitor the program on a monthly basis to evaluate its effectiveness and whether to recommend its extension beyond the first year.