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International Shipping
'New LA-Long Beach emissions rule would cap and divert cargo'
Date:2023-09-11 Readers:
LA and Long Beach port and cargo interests warn that regional air quality board plans to cut emissions will "cap" cargo volumes at the port complex and divert it to other ports, reports New York's Journal of Commerce.

A coalition of more than 100 shipper and transport interests have urged mayors of Los Angeles and Long Beach to oppose the Indirect Source Rule (ISR) proposed by the South Coast Air Quality Management District (AQMD).

The ISR, to be finalised by December, is meant to reduce emissions at the ports from all sources but that will force to limit on cargo volumes.

"The proposal establishes volume caps on port activities, which will restrict the delivery of critical imported goods including essential construction, manufacturing and automobile components, as well as medical supplies, and halt the export of California's manufactured goods and agricultural products to foreign markets," said the letter to the mayors.

But the AQMD hit back, saying the trade community was making assumptions when the details have not been finalised.

Mario Cordero, executive director of the Port of Long Beach, noted that the ports have already achieved significant emissions reductions from their joint Clean Air Action Plan, clean-truck programmes and other initiatives dating back more than 15 years.

"Why do you want to place additional regulations on two ports with such a resume of success?" he said.

PMSA also warned that meeting AQMD's goals may require the use of technology or fuels that have yet to be proven commercially viable.

Jonathan Gold, vice president of the National Retail Federation, who signed the letter, said retailers are especially concerned that any penalties assessed for exceeding emission reduction mandates will add to the high costs they already experience in Southern California.

PMSA argues that any higher transportation costs resulting from the proposed rule could end up actually increasing vessel emissions because cargo diverted from the west coast would travel longer distances on all-water services from Asia to the east and Gulf coasts.

"Greenhouse gas emissions are, on average, 19 per cent higher when shipping lines utilise east coast or Gulf Coast ports over the ports of Long Beach and Los Angeles," PMSA said.

https://www.shippingazette.com/menu.asp?encode=eng

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