Activation of the policy is set to be reassessed by the Executive Directors of the twin ports on 4 February 2022.
Since it was initially announced on 25 October 2021, ageing cargo on the docks of Los Angeles and Long Beach has seen a combined decline of 67%.
Under this program, ocean carriers will be charged for each import container dwelling nine or more days at the terminals. The ports plan to charge $100 per container, increasing in $100 increments per container per day until the container leaves the terminal.
Any fees collected from this initiative are said to be reinvested in programs designed to enhance efficiency, accelerate cargo velocity, and address congestion impacts.
The policy was developed in coordination with the Biden-Harris Supply Chain Disruptions Task Force, the US Department of Transportation and multiple supply chain stakeholders.
Earlier this month, PTI Staff Reporter James Turner caught up with Gene Seroka, Executive Director of the Port of Los Angeles, for the latest instalment of our ‘In conversation with’ series, where they delved into the proposed “Container Dwell Fee”.
“When we announced this fee back on 25 October, I had stated publicly, and then at our Harbor commission meeting later that week, that I hoped this dwell fee was a miserable failure,” said Seroka. “That would mean that if we did not collect even a nickel, and that cargo was moving, it had the intended result.”
Even though shipping experts have seen that the removal of long dwelling import containers on the docks has slowed due to the recent holiday season, Seroka reaffirms that the port will implement the fee if needed.