By Associated Press
November 1, 2021
The Los Angeles and Long Beach Port Commissions have voted to start fining shipping companies if they allow containers to pile up.
The Los Angeles-Long Beach port complex will begin fining shipping companies if they let cargo containers pile up as the country’s busiest twin ports face an unprecedented ship backlog.
The Los Angeles and Long Beach Port Commissions voted on Friday to implement a 90-day “container excess stay fee” that sets time limits on how long containers can stay at marine terminals.
About 40% of all shipping containers entering the United States pass through the ports of Los Angeles and Long Beach. The number of ships awaiting unloading has reached record volumes.
As of Friday, there were 153 ships at anchor, moored or “loitering” – cruising while awaiting dockside space – and more than 100 of them were container ships, according to the Marine Exchange of Southern California. , which monitors the traffic of port ships.
Ships anchored at the complex have well over 500,000 containers on board, officials said. They own hundreds of millions of dollars in toys, electronics, clothing and furniture.
The congestion of ships disrupted the global supply chain and prompted the Biden administration to allow the port complex to operate around the clock to try to unload goods and deliver them to consumers in the run-up to Black Friday. and Christmas holidays.
The joint container charge program that begins November 1 will charge ocean carriers $ 100 per container. But the fine increases by $ 100 per container per day until the cargo moves.
Containers transported by truck can stay up to eight days before the start of sanctions, while containers transported by rail have a five-day delay, according to the Port of Los Angeles.
The average wait time for picking up goods has doubled following an increase in imports partly caused by the COVID-19 pandemic, which affected traffic from Asian suppliers.
Additional reporting by The Associated Press.