Span Alaska announced that due to a tariff increase approved by the Anchorage Assembly for freight coming through the Port of Alaska, freight charges will increase by 7.5% starting in December. The company said that last year it absorbed the rate increase.
Span Alaska provides over-the-water freight via container ship from the Port of Tacoma in Washington state to the Port of Alaska in Anchorage, as well as provides barge service to Southeast Alaska.
“On July 25, 2023, the Anchorage Assembly passed Ordinance 2023-34, establishing the Port of Alaska Modernization Program (PAMP) Surcharge. It applies to all commodities shipped through the port of Alaska, including southbound shipments, and intra-state shipments to Kodiak and dutch Harbor. The per-ton fee became effective on January 1, 2024, and was collected as part of the Municipality’s financing plan for the construction of new cargo terminals. Ocean carriers pay this fee to the Port, and pass on the cost to shippers, including Span Alaska. Throughout the 2024 shipping season, Span Alaska absorbed this fee, without assessing our customers,” the company said. But now, it’s going to have to pass along the costs, because the Assembly just jacked the tariffs even more, and this will increase the cost of living to Alaskans who get their goods through the Port of Alaska.
“On November 6, 2024, the Anchorage Assembly approved an increase in tariffs to help pay for the Program. Effect January 1, 2025, the fee will increase from $.059 to $4.80/ton and from $9.50 per Container to $75.50 per Container on Full Loads. The Port of Alaska Commission will conduct ongoing reviews and adjustments to the fee, extending beyond 2025. This tariff increase will have a notable effect on shipments through the Port of Alaska, and as a result, Span Alaska will introduce a PAMP surcharge executive January 1, 2025.”
The general rate increase will be 7.5% more for all cargo, effective Dec. 15 and will include Central Alaska, Kodiak, Dutch Harbor, Southeast Alaska, and intrastate freight.
The higher cost of goods will be compounded by the fact that Ballot Measure 1 passed, which will increase all union wages across Alaska, a cost that will also be passed on to consumers.
