Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Oakland Also Approves Container Tax

Following on the heels of actions by the Los Angeles and Long Beach ports, the Oakland Board of Port Commissioners on March 21, 2008 approved in concept a tax on ocean containers. In June, Port staff is expected to make recommendations to the Board about how the tax will be assessed, who will collect it, when it will be imposed and other vitally important details.

 

The only fact known for sure right now is Oakland, too, is looking to raise revenues to eliminate the use of old diesel trucks and otherwise clean up its impact on the environment. Also put off was a proposal similar to that enacted in Los Angeles which would eliminate owner-operator drivers. Long Beach originally joined in that effort but has since backed off.

In the meantime, Los Angeles and Long Beach have both approved a $35 per TEU to pay for the drayage overhaul plan. An additional $15 per TEU fee was approved last year to pay for infrastructure improvements.

At the same time, Sen. Lowenthal has reactivated his TEU fee, this time set at $30 per unit.

At what point do the fees being imposed cause shippers and carriers to think about rerouting their cargo to ports outside California?

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