With daily increases, ocean carriers with sluggish cargo will initially be charged $100 per container
The ports of Long Beach and Los Angeles are trying to crack down on overcrowding with a new surcharge for import containers from sea carriers that stop at marine terminals.
Under the new policy, which will take effect from 1 November, ports will charge ocean carriers for every container destined to be transported by truck staying at sea terminals for nine days or more. Meanwhile, for containers run by rail, ocean carriers will be charged if the container has been there for three days or more.
Ocean carriers with cargo in those two categories will initially be charged $100 per container, with an incremental increase of $100 per container per day. Fees collected from residential cargo will be reinvested by the two ports for programs designed to increase efficiency, accelerate cargo velocity, and address the effects of congestion in San Pedro Bay.
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Jean Cerocca, executive director of the Port of Los Angeles, said about 40% of the containers at its terminals fall under the two categories.
“If we can clean up this waste cargo, we will have a lot more room at our terminals to accept free space, handle exports, and improve liquidity for the wide range of cargo owners who use our ports. ”
According to the White House, the Port of Los Angeles and the Port of Long Beach account for about 40% of the country’s imports.
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The new policy was developed in coordination with the Biden-Harris Supply Chain Disruption Task Force, the US Department of Transportation and several supply chain stakeholders.
The port envoy of the Biden-Harris Supply Chain Disruption Task Force, John D. “As our economy continues to grow, increasing demand and disruptions caused by the pandemic are putting our supply chains to the test,” Porkari said in a statement. “While we set new records in terms of throughput this year at West Coast ports, we need more players in the supply chain to step up. The federal government will continue to bring together private companies and stakeholders from across the supply chain. and act as an honest broker helping to offer such solutions to address supply chain disruptions.”
While Harbor Trucking Association CEO Matt Schrappe says ports and the White House should be “applauded for digging up and looking at creative ways to keep ocean carriers busy,” he cautions that the fee will be charged to vessel operators and their marine terminals. May encourage partners to prioritize. Chassis availability for carrier cargo subject to fee, other cargo being left unattended and empty containers stranded at trucking company yards. He added that sea carriers should be encouraged to send sweeper ships to clear the abundance of empty terminals.
The move comes as the Port of Los Angeles processed 903,865 20-foot equivalent units (TEU) in September, the busiest September in its 114-year history. Overall year-over-year cargo volumes exceeded 8.1 million TEUs, up 26% year-on-year. Imports reached 468,059 TEUs in September, while loaded exports fell 42% to 75,714 TEUs, the lowest export amount since 2002. Empty containers increased 28% year-on-year to 360,092 TEUs.
Meanwhile, the Port of Long Beach had the second busiest September on record, with 748,472 cargo container units moving. Imports declined 8.7% to 370,230 TEU, while exports declined 1.6% to 110,787 TEU. Empty containers moved through the port fell 3.6% to 267,456 TEU. In the first nine months of 2021, the Port of Long Beach moved more than 7.09 million TEUs, up 24.3% year-on-year, and is on pace to move more than 9 million TEUs by the end of the year.
Before the pandemic-induced import surge, containers for local deliveries sat on terminals for an average of less than four days, while those set to be carried on trains for less than two days.