SAN PEDRO, Calif. —The Port of Los Angeles and the Port of Long Beach have announced that they will delay consideration of the “Container Dwell Fee” directed at ocean carriers until Nov. 22.
“There’s been significant improvement in clearing import containers from our docks in recent weeks,” said Port of Los Angeles Executive Director Gene Seroka, adding, “We will continue to closely monitor the data as we approach November 22.”
Port of Long Beach Executive Director Mario Cordero added, “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.”
Since the fee was announced on Oct. 25, the twin ports have seen a decline of 26% combined in aging cargo on the docks. This encouraging momentum supports a delay in implementation of the fee.
Under the temporary policy approved Oct. 29 by the Harbor Commissions of both ports, ocean carriers will be charged for each import container that falls into one of two categories: In the case of containers scheduled to move by truck, ocean carriers will be charged for every container dwelling nine days or more. For containers moving by rail, ocean carriers will be charged if a container has dwelled for six days or more.
The ports will charge ocean carriers in these two categories $100 per container, increasing in $100 increments per container per day until the container leaves the terminal.
Any fees collected from dwelling cargo will be reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.