PierPass Inc., a not-for-profit organization created by terminal operators at the Port of Los Angeles and Port of Long Beach, is replacing its pricing model and implementing an appointment-based system for container pickups, the entity announced on April 16.

The 12 marine terminals at the local twin ports reached an agreement to update its program following an 18-month investigation after consulting with supply chain stakeholders, officials said.

Pierpass’s Offpeak program was launched in 2005 to address cargo-related congestion on streets and highways surrounding the two ports. Under the program, Offpeak charged a “traffic mitigation fee” for weekday, daytime, container pickups to incentivize cargo pickups during night and weekend shifts. With the update, the flat fee will be applied to both shifts.

The new flat fee is $31.52 per 20-foot-equivalent (TEUs), replacing the previous fee of $72.09 per TEU. The rate for all other container sizes will be a flat fee of $63.04, officials said.

"The industry has been demanding 'PierPass 2.0,' and we are responding," PierPass President John Cushing said in a statement. "The original OffPeak program was an innovative and highly effective solution to the challenges we faced in 2005. But it was fairly inflexible, whereas an appointment-based model is scalable..."

Manufacturing and trade reporter Shwanika Narayan can be reached at snarayan@labusinessjournal.com or (323) 556-8351. Follow her on Twitter @shwanika.