Ports of LA and Long Beach keep Container Dwell Fee decision on hold

Port of Los Angeles | Port of Long Beach keep Container Dwell Fee on hold

The Ports of Los Angeles and Long Beach have announced they will delay consideration of the “Container Dwell Fee” for the ninth time.

Executive Directors of both the ports will continue to monitor weekly progress and fee implementation will now be assessed again on 17 January 2022.

The move comes as the twin ports have seen a combined decline of 45% in ageing cargo on the docks since the policy was initially announced on 25 October 2021.

The Container Dwell Fee aims to charge ocean carriers for import containers that fall into two categories. In the case of containers scheduled to move by truck, ocean carriers could be charged for every container dwelling nine days or more. Alternatively, for containers moving by rail, ocean carriers could be charged if a container has dwelled six days or more.

The port’s aim is to charge $100 per container, increasing in $100 increments per container per day until the container leaves the terminal.

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

Before the mass surge in demand, brought on by the pandemic, 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.

In other recent news, the Port of Long Beach has received a $52.3 million grant from the US Department of Transportation’s Maritime Administration (MARAD) to fund the development of its Pier B On-Dock Rail Support Facility.

Announced in December 2021, the proposed facility is a major project in the port’s $1 billion rail capital improvement program which aims to utilise moving more cargo by on-dock rail as it is cleaner, more efficient and reduces truck traffic.

“This is great news to hear at the end of what will be our busiest year ever,” said Mario Cordero, Executive Director of the Port of Long Beach.

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