A terminal’s congestion fee is called a Traffic Mitigation Fee (TMF). Traffic Mitigation Fee helps reduce terminal traffic by charging cargo owners or operators. It financially encourages cargo processing during off-peak or less busy times.
A Traffic Mitigation Fee, often abbreviated as TMF, is a fee imposed when a terminal experiences congestion. Furthermore, this fee is charged to cargo owners or operators as a means to mitigate traffic-related problems at the terminal. Essentially, it serves as a financial incentive to encourage off-peak or less congested periods for cargo handling.
The Traffic Mitigation Fee, calculated based on container size, weight, and time of pickup or delivery, is often waived for off-peak hours. Introduced in 2005 to combat port traffic congestion, it remains a topic of debate. Some argue it’s unfair, while others deem it essential for congestion reduction and air quality improvement.
Currently, Traffic Mitigation Fee stands at $34.21 per TEU or $68.42 for other container sizes, with exemptions for pickups and deliveries between 9:00 PM and 5:00 AM. PierPass, a non-profit formed by the ports, collects TMF revenue for transportation projects like road widening and public transit enhancements.
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