Terminal congestion and the resulting supply chain delays at the ports of Los Angeles and Long Beach have reached historical levels. As a result, effective November 1, 2021, the ports of Los Angeles and Long Beach will begin implementing a new policy and will start charging a “daily fee” on all long dwelling cargo. The announcement from the Port of Los Angeles states the fee will be applied to all containers that remain at the terminal for more than nine days for local moves and for six days or more for containers moving via rail. This policy was developed in coordination with the Biden Administration and the U.S. Department of Transportation. The hyperlink below is the latest announcement from the Port of Los Angeles regarding this new measure.
The ports of Los Angeles and Long Beach will be responsible for generating the fees under this policy with the revenue to be re-invested toward long-term port efficiency and infrastructure programs that will help mitigate future congestion challenges in the San Pedro Bay area. Unfortunately, it is not known how the fees will be administered by the ports at this time. The situation remains fluid and we will continue to keep you informed on future developments as they unfold.
UPDATE: October 29, 2021
“ The Los Angeles Harbor Commission voted 4‑0 on Friday to implement a “Container Excess Dwell Fee” directed at ocean carriers in an effort to improve cargo movement on container terminals amid record volume. The program starts on Nov. 1, with penalties to be assessed no earlier than Nov. 15.” Unfortunately, it is still not known how the fees will be administered by the ports at this time. The situation remains fluid and we will continue to keep you informed on future developments as they unfold.
Contact your local Expeditors representative for more information and operational assistance.