CONTAINER FEE PROPOSED

April, 2017

APM Terminal LAThe Southern California Air Quality Management District (SCAQMD) has two container fee proposals submitted, one for $35 per TEU and another for $100 per TEU, to be clear, that is $200 per 40′ container.  The proposed fee could generate as much as $1.1B per year and would be used to help fund the move towards zero emission cargo handling equipment and trucks. SCAQMD has plans to implement the fee effective July 1, 2018.

It seems folks are doing everything they can to drive business out of the state.  Meanwhile, ports on the east and gulf coasts, with their appreciation of the economic benefits that ports generate, are more than happy to pick up the slack.

Frankly, we’re tired of hearing, “What’s $100 to a container full of TVs?”  Well, it means a more expensive TV to consumers.  Furthermore, folks forget California is an export force as well. Agricultural exporters compete on a global market. This fee could make them uncompetitive, and they cannot just pull up stakes and move to another state.

This proposed fee will have a far-reaching and long-lasting negative effect on the state’s economy…but hey, what’s a 100 bucks on a load of TVs, right?