The Ports of Los Angeles and Long Beach have once again delayed consideration of the “Container Dwell Fee” for another week, until 3 January 2022.
This is the seventh time that the fee implementation has been postponed by both Californian ports since the start of the program, with the executive directors saying that they will reassess it after monitoring data over the next week.
Since the fee directed to ocean carriers for import containers that dwell on marine terminals was announced on 25 October, the twin US ports have seen a combined decline of 41% in ageing cargo on the docks.
Lately, the progress has eased due to year-end holidays, while the dwelling cargoes had been reduced by 47% two weeks ago.
The US West Coast ports’ plan is to charge ocean carriers for import boxes that dwell on marine terminals, US$100 per container, increasing in US$100 increments per container per day, until the container leaves the terminal.
This fee for the ocean carriers could be valid for every container dwelling for nine days or more in the case of containers scheduled to move by truck, and for every box dwelling for six days or more if they are been moved by rail.
This policy was approved on 29 October by the Harbor Commissions of both ports, in coordination with the Biden-Harris Supply Chain Disruptions Task Force, the US Department of Transportation and multiple supply chain stakeholders.
Before the pandemic-induced import surge began in the middle of 2020, containers for local delivery remained on container terminals under four days, while containers destined for trains dwelled less than two days, on average, according to a statement.
San Pedro Bay Ports’ officials have noted that any fees collected from dwelling cargo will be reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.
