The Ports of Los Angeles and Long Beach have chosen to delay implementation of their container dwell fee directed at ocean carriers until November 22, a one-week postponement from the originally announced deadline of November 15. Since the controversial fee was announced on October 25, the two ports have seen a decline of 26% in lingering cargo on their docks.
“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,” said Port of Long Beach executive director Mario Cordero. “Postponing consideration of the fee provides more time, while keeping the focus on the results we need.”
“We will continue to closely monitor the data as we approach November 22,” said Port of LA executive director Gene Seroka.
Under the temporary policy, if implemented, ocean carriers will be charged $100 per container per day 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.
Any fees collected from dwelling cargo will be reinvested in programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.