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Tuesday, 16 November 2021 11:03

Officials Delay Fines for Carriers at LA Ports, Cite Progress in Clearing Backlog

Written by Madison Hirneisen, The Center Square

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Officials from the Port of Long Beach and the Port of Los Angeles announced Nov. 15 they would delay issuing fees to ocean carriers for another week after seeing notable progress in clearing backlogged containers.

The fees, which were set to kick in Nov. 15, will be delayed until Nov. 22, officials announced. The decision comes after officials saw a 26% decline in the amount of aging cargo on the docks of both ports combined since the fee was announced Oct. 25.

 

“There’s been significant improvement in clearing import containers from our docks in recent weeks,” Port of Los Angeles Executive Director Gene Seroka said in a statement. “I’m grateful to the many nodes of the supply chain, from shipping lines, marine terminals, trucks and cargo owners, for their increased collaborative efforts. We will continue to closely monitor the data as we approach Nov. 22.”

 

Under the temporary Container Dwell Fee policy adopted in October by the Harbor Commissions of both ports, ocean carriers will be charged each day for containers scheduled to be moved by truck that stay at the port for nine days or more and containers scheduled to be moved by rail that stay for six days or more.

 

The ports will charge ocean carriers $100 per container, with fines increasing in $100 increments per container per day until the container leaves the terminal. Prior to the import surge in mid-2020, containers for local delivery remained on container terminals under four days, with those transported via train dwelling less than two days, according to a news release.

 

This marks the second time port officials postponed the fees---they were initially set to go into effect Nov. 1, but were pushed to Nov. 15. 

 

“We’re encouraged by the progress our supply chain partners have made in helping our terminals shed long-dwelling import containers. Clearly, everyone is working together to speed the movement of cargo and reduce the backlog of ships off the coast as quickly as possible,” Port of Long Beach Executive Director Mario Cordero said in a statement. “Postponing consideration of the fee provides more time, while...


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