US ports not hiking tariff 2002

Published November 18, 2001

LOS ANGELES, Nov 17: Most of the ports in the United States have decided not to raise fees for shippers in 2002, a sign of economic times.

So far two big ports, the Port of Houston and the Port of New Orleans, have announced decisions not to raise its fees — the first time when there will be no year-over-year increase in the fees, known as tariffs, for at least two decades, port officials said.

Meanwhile, the Port of Los Angeles—Long Beach—and in New York are also likely to keep the tariff steady in 2002 and will soon announce a policy to that effect, trade sources told Arab News.

“The purpose is to help stabilize the economy in the aftermath of the Sept 11 attacks,” Houston port’s executive director Tom Kornegay said in a written statement.

Until recently, the Houston port’s authority was considering raising the 2002 tariffs charged for shipments in and out of the port by 2 to 3 per cent.

Now the only adjustments will be to offset contractual labour cost increases as they occur.

“Realizing that we must all play a role in helping stabilize this current situation, the Port Authority is holding its published tariffs at current rate levels,” Kornegay said.

Recently, nearly all US ports have been deluged by letters and telephone calls, mostly from steamship lines, complaining of severe declines in revenues as the result of less cargo and lower rates for hauling it.

The shippers knew the fact that this is about the time of year when the port authorities all across the country announce their annual tariff increases.

The West Gulf Maritime Association reported a 4 per cent decline in overall cargo tonnage in the third quarter and a 3 per cent decline for the first nine months compared with 2000.

The western Gulf ports, composed of nine ports in Texas state and Lake Charles in Louisiana state, moved 49.4 million tons, compared with 51.2 million tons in the same three months of 2000, the association said.

Bagged goods decreased 24 per cent, but bulk cargo increased 2 per cent. Container tonnage, where Houston is a big player, was up 6 per cent.