“We’re encouraged by the progress our supply chain partners have made in helping our terminals shed long-dwelling import containers”
This is the message from Mario Cordero, Executive Director of Port of Long Beach announcing the postponement of Container Dwell Fee till the 22nd of November both at Long Beach and Los Angeles today.
Citing noticeable progress in noticeable progress in the reduction of import containers at the terminals, both ports today announced that they will delay consideration of the “Container Dwell Fee” directed at ocean carriers until Nov. 22.
“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,” said Port of Long Beach Executive Director Mario Cordero. “Postponing consideration of the fee provides more time, while keeping the focus on the results we need.”
“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.”
As per a news release, the Port of Long Beach announced that since the fee was announced on Oct. 25, the twin ports have seen a decline of 26% combined in aging cargo on the docks encouraging the delay in implementation of the fee.
Under the temporary policy approved Oct. 29 by the Harbor Commissions of both ports had announced that ocean carriers will be charged 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 at the container terminals under four days, while containers destined for trains dwelled less than two days.
The ports had announced that any fees collected from the cargo dwell fee would 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, Port of Los Angeles and multiple supply chain stakeholders.
The Port of Los Angeles statistics show that between 1st Nov and 15th Nov, the number of containers staying in the terminals over 13+ days dropped from around 30,000 to 20,000 while containers between 5-8 days stayed at around the 12,500 containers mark.
Why the port has the right to charge the carriers for container dwelling instead of being punished and fined for its inefficiency? Why doesn’t the port compensate carriers and consignees its delaying in discharging vessels and processing the containers which causes the long-time dwelling? The port and terminals, instead of the ocean carriers, should be charged container dwelling fee. Never see a brazen policy like what the port authority of LA/LB is presenting brazenly.