SoCal ports could fine carriers for tardy containers by Nov. 15

Port authorities in Los Angeles and Long Beach plan to start assessing and collecting late fees on loaded import containers that remain on the docks for extended periods as soon as Nov. 15. The information was disclosed in agendas for emergency meetings of the respective harbor commissions on Friday.

The boards will vote on plans submitted by port staff to charge ocean carriers $100 per day, increasing in $100 increments per container per day, for containers scheduled to move locally by truck that are left for nine days or more, and for containers scheduled to move by intermodal rail that dwell for six days or more. The levies are effective Nov. 1.

The “Container Excess Dwell Fee,” which was designed in close coordination with the Biden administration and unidentified industry stakeholders as a way to incentivize faster pickup of containers, is scheduled to last for 90 days, according to the agendas. The goal is to free up space for several crowded terminals that are preventing ships from efficiently discharging cargo, resulting in a queue of 74 container vessels waiting outside the port for a parking spot.

The surcharge will be billed to ocean carriers and collected (directly or through an appointed agent) on a monthly basis, according to the Port of Long Beach’s proposed tariff. Monies collected will be deposited in a fund to cover the cost of special projects for expediting cargo.