The Port of Los Angeles and the Port of Long Beach announced that they will delay consideration of the “Container Dwell Fee” directed at ocean carriers until November citing improvement in the clearing of ports the past weeks.
Since the fee was announced on October 25, the twin ports have seen a decline of 26% combined in aging cargo on the docks which it says supports a delay in implementation of the fee.
“There’s been significant improvement in clearing import containers from our docks in recent weeks,” said Port of Los Angeles Executive Director Gene Seroka. “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 November 22.”
Port of Long Beach Executive Director Mario Cordero also sounded similar optimism noting that the developments at the port is resulting in reducing backlogs.
“We’re encouraged by the progress our supply chain partners have made in helping our terminals shed long-dwelling import containers,” he said. “Clearly, everyone is working together to speed the movement of cargo and reduce the backlog of ships off the coast as quickly as possible.”
“Postponing consideration of the fee provides more time, while keeping the focus on the results we need,” Cordero added.
Under the temporary policy approved October 29 by the Harbor Commissions of both ports, ocean carriers will be charged for each import container that falls into one of two categories: In the case of containers scheduled to move by truck, ocean carriers will be charged for every container dwelling nine days or more.
For containers moving by rail, ocean carriers will be charged if a container has dwelled for six days or more.
The ports will charge ocean carriers in these two categories US$100 per container, increasing in US$100 increments per container per day until the container leaves the terminal.
Before the congestion began in mid-2020, the San Pedro Bay area ports noted that on average, containers for local delivery remained on container terminals under four days, while containers destined for trains dwelled less than two days.
The ports noted that any fees collected from dwelling cargo policy — developed in coordination with the Biden-Harris Supply Chain Disruptions Task Force, US Department of Transportation, Port of Long Beach and multiple supply chain stakeholders — will be reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.