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California ports delay imposing unprecedented fees on carriers

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Containers are being picked up by trucks at Port of Los Angeles on November 22, 2021.

Reuters| Reuters

WASHINGTON – The nation’s busiest port complex will delay imposing unprecedented fees on shipping carriersCiting recent progress made in dealing with the California coast’s backlog of containers and cargo ships, she said:

Long Beach’s twin port and Los Angeles’ Los Angeles is responsible for 40% of the sea freight that enters the United States. The ports are working 24 hours a day to resolve shipping container congestion due in part to a worldwide shutdown after the coronavirus epidemic.

Port directors announced the new fines in an Oct. 25 joint statement. They will charge $100 per container for each day that it is left on the dock. The maximum time that carriers would be allowed to transport containers by truck is nine days before penalties start to accrue. For rail transportation, the limit is six days.

Both ports saw lingering cargo containers drop by 37% since the new fees were announced. According to Monday’s joint statement, the executive directors at both ports will keep an eye on progress and will announce whether or not they will impose fees by Dec. 13.

Cordero stated that although ramping up operations helped to relieve the logjam last month, there were still issues in the supply chain.

There are also truckers, maritime terminal operators, warehouses and railroads as well as port authorities. explained CorderoThe solution to the problem would require “a genuine collaborative effort” by all involved.

It will be a slow process, but there is a robust discussion about the necessity for a transformative change.

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