The cost of shipping goods to Alaska could rise next year in response to increased fees at the Port of Alaska.
The Anchorage Assembly voted last month to increase a tariff surcharge for the Port of Alaska Modernization Program, which applies to all items moving through the port. The program was established last year and helps fund the modernization of the aging-port.
Fees will increase from 59 cents to $4.80 a ton. That’s an 800% increase, but city officials said it probably won’t be very noticeable to the average Alaskan.
The price for full containers is raising a similar amount, from $9.50 per container to $75.50.
Bill Falsey, the city’s chief administrative officer, said the impact to the cost of goods in the state should be minimal.
“We don't know the actual dollar amount that will hit Alaska individuals,” Falsey said. “What we do know is, if the whole amount of this were to be passed on, it would be very minor. We're talking about a fraction of a cent per gallon of gasoline, a fraction of a cent on a loaf of bread, maybe a penny or two on a gallon of milk.”
The port modernization project has an estimated price tag of nearly $2 billion.
Falsey said the surcharge is designed to match federal grant and loan opportunities.
“This play
The majority of Alaska’s inbound cargo arrives at the Don Young Port of Alaska.
Port director Steve Ribuffo said the port is at risk of failure without the modernization project, and thinks the fee increase is an investment in the future.
“We're designing this place with a 70-year lifespan,” Ribuffo said. “It's to create a facility that is modern to meet industry standards and is going to be around for a very long time, and designed to survive the next big earthquake. So it's a smart investment.”
The new rate takes effect Jan. 1. Port officials expect cargo terminal construction will begin in 2026.
