Fees Suspended as Congestion Clearing Improves
On October 25th, the ports of Los Angeles and Long Beach announced the Container Dwell Fees, as well as a plan to run operations at the ports at 24/7 capacity. Carriers would have 9 days to move containers by truck and 6 days to move by rail. Each container would be charged $100 for each day lingering.
The terminals were running out of space, and the executive directors were hoping to make room for the containers sitting on the ships at anchor. There have been dozens of cargo ships anchored offshore from the two ports for months, leading to a supply chain crisis nationwide. Partly due to the shortage of warehouse workers, and truck drivers to pick up the goods, this ongoing crisis is continuing to plague the nation. However, unloading the ships has brought up new problems, such as the surrounding neighborhoods being used for storage, and trucks idling for hours in the residential streets.
Despite this, LA and LB California ports are delaying the imposing fines on the carriers for idle containers awaiting pick up, saying that there has been a significant improvement in the supply chain since last month. The executive directors of the ports said in a joint statement that since the announcement in October for the compounding fees, the two ports have seen a tremendous decline of 33% in aging cargo on the docs. Though they are satisfied with the progress so far, the directors will continue to monitor the situation and will reassess the implementation of the fee in the upcoming days after Black Friday and Cyber Monday.
The gift-giving season is here, and this development came with the supply chain squeeze that occurs every year around this time. President Joe Biden’s administration, in an attempt to relieve the pressure on the supply chain, still contends with inflation, a labor shortage, and elevated levels of COVID-19 cases.
As the crisis continues to hopefully improve, you can count on Future Forwarding to make sure your cargo is getting where it needs to go. We know each company has specific needs and we are here to make sure we meet each and every one of them. Whether by air, sea, or ground, we have the resources and expertise to work to deliver every shipment in a timely, secure manner. At Future Forwarding, we deliver personalized quality every step of the way.