In what is seen as a possible improvement in the situation of full containers dwelling in the San Pedro Bay ports of Long Beach and Los Angeles, both ports have today announced that the implementation of Container Dwell Fee will be further postponed to the 29th of 2021.
As per the last press release this fee was to come into effect from the 22nd of November 2021.
In a press release, the Port of Long Beach announced this postponement citing continued progress at the marine terminals. This announcement comes on the heels of today’s meetings with U.S. Port Envoy John D. Porcari and industry stakeholders.
“With continued progress moving containers off marine terminals, the fee will not be considered before Nov. 29,” the announcement read.
The fee which was announced on Oct. 25 was supposed to have been implemented on the 1st of November 2021, but surprisingly the two ports have seen a decline of 33% combined in aging cargo on the docks. The release said that “The executive directors of both ports are satisfied with the progress thus far and will reassess fee implementation after another week of monitoring data.”
Under the temporary policy approved on the Oct. 29 by the Harbor Commissions of both ports, ocean carriers were liable to be charged the Container Dwell Fee for each import container that falls into one of two categories:
- For containers that are scheduled to move by truck, ocean carriers will be charged USD100/- per container per day increasing in increments of USD100/- per container per day, if the containers have been sitting in the terminals for nine days or more.
- For containers that are scheduled to move by rail, ocean carriers will be charged USD100/- per container per day increasing in increments of USD100/- per container per day, if the containers have been sitting in the terminals for three days or more.
Before the pandemic-induced import surge began in mid-2020, on average, containers for local delivery remained on container terminals under four days, while containers destined for trains dwelled less than two days.
Any fees collected from dwelling cargo was projected to be reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.
The policy was developed in coordination with the Biden-Harris Supply Chain Disruptions Task Force, U.S. Department of Transportation and multiple supply chain stakeholders.