San Pedro Bay ports postpone implementation of container dwell fee

San Pedro Bay ports postpone implementation of container dwell fee
Port of Long Beach

The Ports of Los Angeles and Long Beach have delayed the consideration of the container dwell fee directed at ocean carriers until November 22, citing an improvement in import container clearance from the docks.

Since the fee was announced on October 25, the twin ports have seen a decline of 26% combined in aging cargo on the docks.

Port of Los Angeles executive director Gene Seroka said: “There’s been significant improvement in clearing import containers from our docks in recent weeks.

“I’m grateful to the many nodes of the supply chain, from shipping lines, marine terminals, trucks and cargo owners, for their increased collaborative efforts. We will continue to closely monitor the data as we approach November 22.”

Port of Long Beach executive director Mario Cordero stated: “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.

“Postponing consideration of the fee provides more time, while keeping the focus on the results we need.”

Under the temporary policy, 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 US$100 per container, increasing in US$100 increments per container per day until the container leaves the terminal.

Before the pandemic-induced import surge began in mid-2020, on average, containers for local delivery remained on container terminals under four days, while containers destined for trains dwelled less than two days.

Any fees collected from dwelling cargo will be reinvested for programmes designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.