Importers moving containers through Southern California’s San Pedro Bay port complex should update their landed-cost forecasts. Effective August 1, 2026, the PierPASS Traffic Mitigation Fee, or TMF, at the Ports of Los Angeles and Long Beach increased by 4.77%.
The new rate is $40.63 per twenty-foot equivalent unit, or TEU, and $81.26 for containers of all other sizes. The increase applies to non-exempt containers handled at the twelve container terminals across the two neighboring ports.
Although the adjustment may appear modest on an individual shipment, its impact can become significant for importers managing high container volumes, tight margins, or peak-season inventory programs. Understanding when the fee applies and incorporating it into transportation budgets can help supply chain teams avoid unexpected cost variances.
Why Did the PierPASS TMF Increase?
The West Coast MTO Agreement, or WCMTOA, announced the adjustment on July 1, 2026. According to the official PierPASS announcement, the 4.77% increase corresponds with higher longshore wage and assessment rates under the coastwide labor contract between the International Longshore and Warehouse Union and the Pacific Maritime Association.
Labor represents the largest portion of the expense associated with extended terminal gate operations. The TMF helps terminal operators offset the cost of providing additional night and weekend shifts through the PierPASS OffPeak program.
PierPASS is a nonprofit organization created by the marine terminal operators serving the Ports of Los Angeles and Long Beach. Its OffPeak program was launched in 2005 to reduce truck congestion and cargo-related air pollution on streets and highways surrounding the port complex.
The WCMTOA operates under an agreement filed with the Federal Maritime Commission, authorizing participating marine terminal operators to discuss and establish certain rates, charges, operating practices, and conditions of service.
What Are the New PierPASS TMF Rates?
Beginning August 1, 2026, the fee schedule is:
· $40.63 for a 20-foot container, equivalent to one TEU
· $81.26 for containers of all other sizes, including commonly used 40-foot and 45-foot equipment
The charge is based on container size rather than cargo value, weight, or commodity type. As a result, a low-value shipment and a high-value shipment moving in the same container size can incur the same TMF.
Under the current PierPASS model, the TMF is generally assessed on eligible container movements across terminal shifts. Appointment systems, rather than a daytime-only penalty structure, are used to distribute truck activity across available operating hours.
Which Containers Are Exempt?
Not every container movement is subject to the TMF. Exemptions identified by PierPASS include:
· Empty containers
· Import or export cargo moving through the Alameda Corridor when the container is already subject to an Alameda Corridor Transportation Authority fee
· Transshipment cargo
· Empty chassis
· Bobtail truck movements
Importers should not assume that a shipment qualifies for an exemption without confirming the routing and transaction details. For example, using rail as part of an inland move does not automatically establish that every container is exempt. The movement must meet the applicable PierPASS requirements.
Why the OffPeak Program Matters
The Ports of Los Angeles and Long Beach form one of the most important container gateways in the United States. Concentrated truck activity during traditional daytime hours can create congestion at terminal gates and on surrounding roads, affecting appointment availability, driver productivity, and cargo velocity.
The OffPeak program provides scheduled night and weekend terminal shifts for container pickups and deliveries. PierPASS reports that more than 68 million truck trips have shifted to off-peak periods since the program began.
This extended operating capacity does not eliminate every port delay, but it gives terminal operators, truckers, freight forwarders, and cargo owners additional windows for moving containers. Terminal appointment systems are used to spread arrivals and reduce uncontrolled surges at the gates.
What the PierPASS Increase Means for Importers
For a business moving one 40-foot container, the direct change may appear limited. At scale, however, recurring fee increases can affect transportation budgets and product-level profitability.
A shipper moving 500 non-exempt containers larger than 20 feet after August 1 would incur $40,630 in TMF charges at the new rate. That amount does not include ocean freight, drayage, chassis expenses, demurrage, detention, customs duties, the Clean Truck Fund Rate, warehousing, or final distribution.
This is why importers should avoid evaluating PierPASS as an isolated invoice line. It should be included within a complete landed-cost model that reflects all expenses from origin through final delivery.
Companies using GLC’s ocean freight services can coordinate international transportation with routing visibility and destination support. Importers may also benefit from working with an integrated provider that can connect port arrival planning, customs release, drayage coordination, and downstream delivery.
Five Actions Supply Chain Teams Should Take
1. Update rate sheets and landed-cost models
Replace outdated TMF amounts in internal forecasts, customer quotations, and shipment-cost templates. Confirm that transportation management, procurement, and accounting systems reflect the August 1 effective date.
2. Review upcoming Southern California arrivals
Identify containers scheduled to move through Los Angeles or Long Beach and estimate which shipments will be subject to the new fee. Pay particular attention to high-volume purchase orders and seasonal import programs.
3. Confirm responsibility for payment
Review Incoterms, vendor agreements, freight-forwarding arrangements, and customer contracts to determine which party is responsible for the TMF. Clearly assigning responsibility can reduce billing disputes and cargo-release delays.
4. Coordinate customs and terminal readiness
TMF payment is only one part of cargo availability. Documentation, customs release, terminal holds, appointment availability, and trucking capacity must be aligned.
GLC’s customs brokerage services support importers with entry processing, Importer Security Filing coordination, bond management, government-agency requirements, and cargo-release visibility.
5. Avoid last-minute container planning
Waiting until the last free day can increase exposure to missed appointments, demurrage, storage charges, and operational disruption. Advance coordination among the importer, customs broker, freight forwarder, and drayage provider remains essential.
Plan Beyond the Fee
The 2026 PierPASS TMF increase is not a dramatic change by itself, but it is another reminder that import costs are shaped by multiple operational and regulatory charges. Small adjustments across ocean freight, terminal fees, labor, trucking, duties, and warehousing can materially change total landed cost.
Importers moving cargo through the Ports of Los Angeles and Long Beach should incorporate the new $40.63-per-TEU and $81.26-per-container rates into their budgets, verify exemptions carefully, and coordinate cargo release before arrival.
GLC helps businesses manage international freight, customs brokerage, warehousing, trucking, and supply chain execution through one connected logistics network. Contact GLC to review upcoming West Coast shipments and build a more accurate, proactive import plan.