The Port of Long Beach and Port of Los Angeles announced Nov. 15, they will delay consideration of the “Container Dwell Fee” directed at ocean carriers until Nov. 22.
Since the fee was announced on Oct. 25, the twin ports have seen a decline of 26% combined in aging cargo on the docks. The ports said this decline supports a delay in implementation of the fee.
Under the temporary policy approved Oct. 29 by the Harbor Commissions of both ports, ocean carriers will be charged for each import container that falls into one of two categories: In the case of containers scheduled to move by truck, ocean carriers will be charged for every container dwelling nine days or more. For containers moving by rail, ocean carriers will be charged if a container has dwelled for six days or more.
The ports will charge ocean carriers in these two categories $100 per container, increasing in $100 increments per container per day until the container leaves the terminal.
Any fees collected from dwelling cargo will be reinvested for 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, U.S. Department of Transportation, Port of Los Angeles and multiple supply chain stakeholders.