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Will Container Dwell Fee in Los Angeles and Long Beach be implemented?

The Port of Los Angeles and the Port of Long Beach announced on the 29th of November that the implementation of the much unwanted “Container Dwell Fee” will be further postponed till the 6th of December.

This decision taken after a meeting between U.S. Port Envoy John Porcari, shipping lines and the marine terminal operators brings into question whether action can be spurred just on the back of threats of additional costs to carriers.

As per statements from the Port of Los Angeles and Port of Long Beach, since the fee was announced on Oct. 25, the twin ports have seen a combined decline of 37% in aging cargo on the docks.

The executive directors of both ports will reassess fee implementation after another week of monitoring data.” the release stated.

Los Angeles and Long Beach - container dwell fee
Image : Reuters

The Harbor Commissions of both the San Pedro Bay Ports which handles 40% of US cargo approved the levying of this charge under a temporary policy on October 29, 2021 under which, the shipping lines can be charged

  • 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 container dwell fee collected from dwelling cargo will 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.

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