The Ports of Los Angeles and Long Beach decided at the very last minute to delay until November 22nd the implementation of their previously announced container dwell fee. The planned penalty fees were announced on October 25th and since then the two ports have seen a decline of 26% in the number of containers sitting on their docks awaiting collection.
Port of Long Beach Executive Director Mario Cordero said that “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. Postponing consideration of the fee provides more time, while keeping the focus on the results we need.”
Port of LA Executive Director Gene Seroka said that “we will continue to closely monitor the data as we approach November 22nd”.
The dwelling fees, which Seroka has stated he hopes raises no money, as the object was to clear the backlog rather than raise revenue, would see ocean carriers charged $100 per container per day for each import container that is deemed to have “dwelled” too long in the port. The parameters for that are nine days for containers scheduled to move by truck, ocean carriers will be charged for every container dwelling nine days or more and six days for containers moving by rail.
The ports have said that any fees collected from dwelling cargo would be reinvested in programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.