The ports of Los Angeles and Long Beach have delayed, yet again, implementing a fee on ocean carriers whose import containers linger too long at terminals, even as they are poised to enact a similar charge for empty containers.
The nation’s two busiest ports announced on Monday, Jan. 10, that they would delay for the 10th time — and ninth consecutive week — their Container Dwell Fee. The fee won’t go into effect until at least Monday, Jan. 17.
As they did when announcing the previous delays, the ports on Monday cited continued progress in reducing the number of containers at their terminals.
The fee is one of several efforts aimed at speeding the processing of cargo at the San Pedro Port Complex to eliminate a backlog of ships trying to deliver merchandise. 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.
On Monday, the ports reported a combined 45% decline in aging cargo since the fee was announced on Oct. 25.
The fee, if implemented, would begin at $100 per container, increasing by $100 per container each day. Containers set to be transported by truck would incur the fee if they remain at the ports for nine days or more. For rail containers, the threshold would be three days.
Fees collected from the policy would be reinvested into programs that aim to enhance efficiency, accelerate cargo velocity and address congestion impacts.
The 90-day policy, which the LA and Long Beach harbor commissions OK’d on Oct. 29, was initially set to go into effect on Nov. 1.
But the ports delayed implementing the charges until Nov. 15 to give ocean carriers time to comply.
When that time came, the ports delayed implementing the fee for another week, citing significant progress.
“There’s been significant improvement in clearing import containers from our docks in recent weeks,” Port of Los Angeles Executive Director Gene Seroka said at the time.
“I’m grateful to the many nodes of the supply chain, from shipping lines, marine terminals, trucks and cargo owners,” he added, “for their increased collaborative efforts.”
The ports have delayed the fee each week since then.
The 10th delay in charging ocean carriers for aging cargo carriers, meanwhile, comes as both ports are set to create a similar fee on empty containers that remain on terminals for at least nine days. That fee is set to take effect Jan. 30.
Empty containers have been a particular problem amid the wider supply chain crunch.
For one, such containers often get stored on chassis needed to move out loaded cargo. And for another, the glut of empty containers have become such a problem that they have ended up in storage yards throughout the Wilmington community, sometimes blocking streets when staging and moving them becomes necessary. In at least one case, a container fell from a chassis and crushing a parked car.
Both ports have tried to find extra space to store the containers, and their respective cities have relaxed container-stacking limits.
Earlier this month, for example, the Carson City Council approved a $2 million deal with a local shipping company that will allow cargo containers and trucks to stay on Marathon Petroleum’s refinery property until they are ready to be moved out.
“Just like the import dwell fee,” Seroka said when announcing the proposed empty container fee late last month, “the objective with this empty container program is not to collect fees but to free up valuable space on our docks, clearing the way for more ships and improving fluidity.”
SCNG staff contributed to this report.
