UPDATE: Charges Delayed at Ports of Los Angeles & Lengthy Seashore

Firstly of the month, we blogged about $100-per-day fines the Ports of Los Angeles and Lengthy Seashore have been to impose on carriers for lingering containers. The carriers instantly stated they’d cross the charges off on shippers, in fact, so these are extra like charges for shippers, who’re already paying sky-high freight charges and coping with pricey delays from port congestion.

Immediately, we share excellent news. Not less than for the second. These charges are being delayed.

Provide Chain Mind reported earlier this week:

The U.S.’s largest ports of Los Angeles and Lengthy Seashore will postpone the beginning of a payment on ocean carriers that fail to clear containers off the docks, which was set to start Monday.

The plan to cost carriers $100 per day for every container sitting on the docks for at the least three days introduced by the dual ports final month was placed on maintain till Nov. 22, Port of Los Angeles Govt Director Gene Seroka stated in a assertion.

Port of L.A. Says Improved Cargo Clearing Brought about Postponement

The Port of Los Angeles’s press launch asserting the postponement of those charges contains the subtitle, “Noticeable Progress in Discount of Import Containers on Terminals.” The implication that improved motion of import delivery containers from the dock resulted within the payment delay is made extra specific within the launch, however it additionally makes it clear that if outcomes don’t proceed to fulfill the ports’ approval, they’re able to implement the charges.

Right here’s the total content material of the press launch from the Port of Los Angeles:

SAN PEDRO, Calif. — Nov. 15, 2021 — The Port of Los Angeles and the Port of Lengthy Seashore introduced at present that they may delay consideration of the “Container Dwell Payment” directed at ocean carriers till Nov. 22.

“There’s been important enchancment in clearing import containers from our docks in latest weeks,” stated Port of Los Angeles Govt Director Gene Seroka. “I’m grateful to the numerous nodes of the provision chain, from delivery strains, marine terminals, vans and cargo house owners, for his or her elevated collaborative efforts. We’ll proceed to intently monitor the information as we strategy November 22.”    “We’re inspired by the progress our provide chain companions have made in serving to our terminals shed long-dwelling import containers. Clearly, everyone seems to be working collectively to hurry the motion of cargo and scale back the backlog of ships off the coast as rapidly as potential,” stated Port of Lengthy Seashore Govt Director Mario Cordero. “Suspending consideration of the payment supplies extra time, whereas holding the give attention to the outcomes we’d like.”   Because the payment was introduced on Oct. 25, the dual ports have seen a decline of 26% mixed in getting older cargo on the docks. This encouraging momentum helps a delay in implementation of the payment.

Underneath the momentary coverage permitted Oct. 29 by the Harbor Commissions of each ports, ocean carriers might be charged for every import container that falls into one among two classes: Within the case of containers scheduled to maneuver by truck, ocean carriers might be charged for each container dwelling 9 days or extra. For containers shifting by rail, ocean carriers might be charged if a container has dwelled for six days or extra.

The ports will cost ocean carriers in these two classes $100 per container, rising in $100 increments per container per day till the container leaves the terminal.

Earlier than the pandemic-induced import surge started in mid-2020, on common, containers for native supply remained on container terminals underneath 4 days, whereas containers destined for trains dwelled lower than two days.

Any charges collected from dwelling cargo might be reinvested for applications designed to boost effectivity, speed up cargo velocity and tackle congestion impacts.

The coverage was developed in coordination with the Biden-Harris Provide Chain Disruptions Job Power, U.S. Division of Transportation, Port of Lengthy Seashore and a number of provide chain stakeholders.