The Port of Tacoma has joined Long Beach and Los Angeles in offerings millions in rebates and financial incentives to its shipping customers as port authorities scramble to shore up market share amid severe competition.
Tacoma's deal offers shippers a rebate of $17.50 for each container moved by rail in 2009 if they agree to extend their lease by at least one year and participate in a localized version of the Clean Trucks Program launched in Long Beach-L.A. in 2008.
."We're giving them something in exchange for future value," Anna Soderstrom, a port executive, told the Olympian newspaper.
If the four or five tenants participate, the port would end up paying about $4.2 million in coming months, Soderstrom said. But, the port would benefit by securing future business. Tenants pay up to $10 million annually to lease port property in Tacoma, generating large revenues for local port authorities.
Tacoma's port, located on the Pugent Sound about 30 miles southwest of Seattle, is one of the nation's largest, handling some $36 billion in trade annually.
But unlike Long Beach and Los Angeles, most trade through Tacoma is "discretionary" cargo bound for the U.S. Midwest, meaning shippers have the option to divert their wares through other seaports if cheaper options become available.
Tacoma estimates 70 percent of its trade volume is discretionary, whereas that number is just 40-45 percent in Long Beach-Los Angeles, which has an extensive local market for goods. Local ports are the main gateway for hundreds of billions worth of consumer and manufacturing goods destined (primarily from China) for the region's 12 million-plus residents.
In recent months, Long Beach and Los Angeles have offered shippers a number of rebates, incentives and discounts for discretionary cargo, and Los Angeles is also offering terminal operators nearly $26 million in rent reductions and other financial incentives to help weather a rough economic period.
Cargo volumes are down nearly 20 percent at the twin ports since their 2007 peak (Long Beach has been hit hardest), and more than a dozen of the globe's largest shipping lines have reported some $6 billion in losses during the first half of 2009, though consolidations, cutbacks and layoffs have reduced losses in recent months.
Paul Eakins reports on Long Beach City Hall, and local and regional
politics. A newcomer to the Press-
Kris Hanson reports on the Ports of Long Beach and Los Angeles,
covering environmental issues, economic triumphs and
pitfalls and trade trends of America’s largest port.
He also writes a weekly column “On The Waterfront”,
appearing Tuesdays, and also produces an occassional video
and column titled “On The Job,” which follows the hard-working
men and women who keep Southern California’s economy humming.
Karen Robes Meeks came to work for the Press-
good incentive . all ports n terminals r giving incentives discreetly. tacoma, seattle are gods bounty to its residents on west coast, hope you will also give incentives to ships which are not emitting sulphur to protect heaven on earth i mean washington state. pl ensure complince of marpol annex6 of imo convention