Customer discounts designed to encourage trade through the Port of Los Angeles and ease the economic pain for its tenants will end up costing the port nearly $22 million for the 2008-09 and 2009-10 fiscal years. Last week the port board voted to formalize discounts with six container terminal operators - China Shipping, Yang Ming, Yusen, Evergreen, Maersk, and Eagle Marine - and is expected to act separately on a discount for TraPac. The TraPac agreement was postponed after the company asked for more time to crunch the numbers. The program is expected to cost the port more than $5 million annually going forward.

Federal Judge Susan Illston on Friday approved the plea agreement between Fleet Management Ltd and the U.S. government over the November 2007 accident in which the containership Cosco Busan sideswiped the San Francisco Bay Bridge. Fleet Management operated the ship and crew under contract. The allision tore a 212-foot gash in the side of the ship, allowing 53,000 gallons of bunker fuel to spill into the water. The judge approved the recommended $10 million penalty for three criminal counts. Port Pilot John Cota, who was on the bridge of the ship when the accident happened, was sentenced to 10 months in prison last year after pleading guilty to criminal negligence.

VAROOOM! It looks like fast car racers will be used to promote green port philosophy again this year with the Port of Long Beach board expected to approve a $155,000 sponsorship deal today with the Long Beach Grand Prix. Under the proposed deal, the port once again would be the official sponsor of the Toyota Prius Hybrid pace car, all done up in new Port-branded colors. The port would also get display space in the event's Lifestyle Expo, editorial space in the program, commercial spots on the giant vision boards, public announcements, 20 track signs, participation in pre-race events, and a pit-row VIP suite.

 - The Cunningham Report