No box terminal discounts on horizon at Long Beach Port

THE US Port of Long Beach does not intend to follow in the footsteps of the neighbouring Port of Los Angeles to offer a six per cent discount on rent for container terminal operators, partly on account of port authorities already practicing an "ongoing terminal-by-terminal review of leases with operators."

According to a Long Beach spokesman, port authorities have offered a range of discounts over the past year to ease the financial strain on its customers, the American Shipper reports.

These measures include cargo incentives for terminal operators and ocean carriers that manage to increase cargo volumes, and the postponement of a cargo infrastructure fee that was to be applied to each box handled at the port, the report said.

The six per cent discount offered by the Port of Los Angeles on terminal lease rates is expected to save operators a total of US$20 million from January through June 2010. "Other discounts approved by Los Angeles could potentially save another $5 million," it said.

The report added that the Port of Long Beach has seen its cargo volumes fall more significantly than the Port of Los Angeles since the start of the economic downturn in the United States.

(Source: www.schednet.com)