LA to reward carriers

The Ocean Common Carrier Incentive Programme adds to the advantages of moving cargo through the port at a time when the fundamentals of shipping are changing and international carriers are rethinking traditional business practices.

Under the programme, an ocean carrier will earn US$5 per teu for each incremental container it ships through the Port in calendar year 2014. The rate jumps to US$15 per teu for all teu if a carrier’s container volume grows by 100,000 or more units for the same 12-month period.

The baseline for measuring the increased volume will be the total number of containers each carrier moved through the Port in calendar year 2013. Carriers will receive their incentive in a lump-sum payment in early 2015. Port staff will monitor the programme on a monthly basis to evaluate its effectiveness and whether to recommend its extension beyond the first year.