The ports of Los Angeles and Long Beach, the two busiest in the nation, have again postponed implementing a fee on companies whose import containers linger at marine terminals, with the assessment now potentially taking effect, if necessary, on Friday, Feb. 18.
The Container Dwell Fee has been delayed numerous times because, according to port officials, ocean carriers have made voluntary progress in reducing the number of containers at terminals. The ports on Friday, Feb. 11, reported a 70% combined decline in aging cargo on the docks since the fee was announced in late October.
Over the next week, port officials will monitor and reassess the fee’s implementation.
When the ports first announced the fee, on Oct. 25, it was supposed to go into effect Nov. 1. But the ports then delayed it until Nov. 15, to give ocean carriers — against which the fee would be charged — time to comply.
When Nov. 15 came, the ports, citing progress, delayed the fee for one week. They’ve delayed the fee weekly ever since.
The fee is one of several efforts aimed at speeding cargo processing at the San Pedro Port Complex to eliminate a backlog of ships trying to deliver merchandise, as well as other clogs in the supply chain. Port of Los Angeles officials said when the policy was announced that about 40% of import containers were idling at terminals for at least nine days.
Harbor commissions for both Long Beach and Los Angeles unanimously approved the policy on Oct. 29, to be in effect for 90 days. The program has since been extended through April 29.
“Merely announcing the fee reduced the number of those idling containers by more than 60%,” Port of Los Angeles Executive Director Gene Seroka said during his State of the Port speech on Jan. 20. “The results have been phenomenal and I’m happy to say we have not implemented the fee.”
The fee, if implemented, will begin at $100 per container, increasing by $100 per container each day. Containers set to be transported by truck and rail will incur fines if they remain at the ports for nine days or more.
Fees collected from the policy will be reinvested into programs meant to enhance efficiency, accelerate cargo velocity and address congestion.
On Dec. 30, the ports announced an additional planned fee on carriers with empty containers that linger for at least nine days on marine terminals. That fee needs to be approved by the harbor commissions, officials have said conversations with stakeholders remain ongoing.
SCNG staff contributed to this report.
