Evaluating Container Fee Impacts on Port Choice: A Case Study of the Ports of Los Angeles, Long Beach, and Oakland

Market-based mechanisms are currently being considered to fund security, mobility, and environmental improvement investments at ports. One such mechanism is a port user fee (PUF) applied to each shipping container received at port. This analysis considers whether PUF may drive ship traffic away from PUF ports and towards non-PUF ports. We evaluated the likelihood of such diversion by applying a voyage cost analysis model to empirical data for over 5,000 port calls to the Ports of Los Angeles and Long Beach (LA/LB) and Oakland. With this model, we estimate ship voyage diversion from the Ports of LA/LB and Oakland under an assumed PUF to other major West Coast ports such as the Ports of Seattle and Tacoma. Our results indicate an overall strong preference for the Ports of LA/LB and Oakland, even under high PUF levels. Demand for the Ports of LA/LB is highly insensitive to an increase in voyage costs due to a PUF. For Oakland, where the majority of ship calls come from LA/LB (about 75%), a small fraction of foreign direct shipping could experience some diversion, depending on how PUF funds are applied to infrastructure and public welfare needs.

Language

  • English

Media Info

  • Media Type: CD-ROM
  • Features: Appendices; Figures; References; Tables;
  • Pagination: 30p
  • Monograph Title: TRB 86th Annual Meeting Compendium of Papers CD-ROM

Subject/Index Terms

Filing Info

  • Accession Number: 01055879
  • Record Type: Publication
  • Report/Paper Numbers: 07-2347
  • Files: BTRIS, TRIS, TRB
  • Created Date: Feb 8 2007 7:02PM