Los Angeles, Long Beach container dwell fees on hold again
THE ports of Los Angeles and Long Beach have once again delayed imposing cargo dwell fees on ocean carriers, reports the Los Angeles Daily News.
The authorities say there has been progress in clearing overstaying containers. The fee will be reconsidered on December 27 when port directors will reassess cargo flow data.
Since the fee was announced on October 27, both ports have seen a combined 46 per cent drop in aging cargo on the docks. The 90-day fee policy was passed by both harbour commissions on October 29, with old cargo piling up and preventing arriving ships from getting unloaded as quickly as possible.
While the fee policy is set due to expire at the end of January, both commissions have the option to extend it, keeping that option available if needed.
Under the temporary fee policy, if it goes into effect, ocean carriers would be charged for each import container that fell within two categories: Ocean carriers would be charged US$100 for every container set to leave via truck that sits at a terminal nine days or more, and every container set to move by rail that remains at least six days.
Charges would increase by $100 each day, per container, until the boxes leave the terminals.
The policy was developed in coordination with the Biden-Harris Supply Chain Disruptions Task Force, US Department of Transportation and multiple supply chain stakeholders.
Before the pandemic-induced cargo surge began in mid-2020, containers for local delivery by truck would sit less than four days. Boxes bound for rail normally sat fewer than two days.