Effective today, November 1, 2021, there will be an “emergency fee” automatically applied to all long dwelling cargo at the ports of Long Beach and Los Angeles. This is the Biden Administration’s latest attempt at combating the overwhelming port congestion.
The current average wait time for ships at anchor waiting to unload is ten days. This is deemed highly unreasonable by Port of Long Beach’s Executive Director, Mario Cordero. He has since emphasized the need for “bold measures” to be taken in order to move cargo in a more efficient fashion. Additionally, the existence of a fine is meant to encourage more carrier-related engagement in solving the congestion crisis in the long run.
Shipping firms will now have a maximum total of three days to move containers if their next step is by rail, or nine days if the next step is by truck. That said, should the containers stall any longer than these stated periods, the fine will be imposed thereafter. Los Angeles and Long Beach will be responsible for collecting any fees from the carriers, and the ultimate goal is for the money to serve new infrastructure and port efficiency matters.
The following addresses more specifics of this new surcharge:
**1. The fee will be applied to all containers that remain at the terminal for 9 days or more and rail containers for 3 days or more. **2. The cost is $100 per container on the first day past the set dwelling limit for terminal or rail and will increase by $100 increments for each day that follows (i.e., $200 for day 2, $300 for day 3 and so on).****
Given the fact that it is only days away, there is still much to confirm with this new decision, particularly how fines will be collected, as well as the step-by-step process to be put into place. We understand that there will inevitably be a transition period as all parties adapt to this decision.
In the hopes of mitigating the process, John S. Connor, Inc., will revert with the latest news in order to keep all involved informed. Please reach out if you have any questions or concerns in the meantime.