HIGHLIGHTS
- Following the previous announcement of the implementation of the Container Dwell Fee, the Port of Los Angeles intends to begin charging shipping lines for empty containers left at ports for nine days or more.
- Drayage firms are concerned this could prompt ocean liners to adopt a more restrictive stance on accepting empty boxes and have reported problems with returning empty containers before.
FULL ARTICLE
Port of Los Angeles charges empty containers
Following the previous announcement of the implementation of the Container Dwell Fee, the Port of Los Angeles intends to begin charging shipping lines for empty containers left at ports for nine days or more.
According to the Port of Los Angeles, the charge is subject to approval by the Los Angeles Port Commission, which will go into effect on January 30, 2022.
Under this policy, shipping lines will be charged 100 USD for each empty container left at the port for nine days, increasing by 100 USD/empty container per day until the container leaves the port.
The Port of Los Angeles Commission will review the program at its January 13 board meeting. If approved, implementation of the fee will be decided by chief executive Gene Seroka.
“Although we have had considerable success in reducing the volume of imported containers arriving at our ports over the past two months, too many empty containers are now sitting in ports,” said Seroka.
The Port of Los Angeles announced a similar program on October 25 for backlogs of imported containers, but it delayed issuing the rate because imported containers held for more than nine days were reduced by 53. % as of October 24th.
Shipping lines have avoided a fee on aging imported containers in Los Angeles for another week, but the port authority is now deciding to charge them for empty containers at their terminals.
Pressure on carriers
Shipping companies are concerned that this empty container fee may make it harder for shipping lines to accept empty containers, and they have reported returning empty containers before.
The Ocean Transport Association said many terminals do not accept returns of empty containers and accept loaded import units if they belong to different ocean carriers.
In addition, according to the Harbor Cargo Association, there are currently more than 100,000 empty containers stuck at the port complex of Los Angeles and Long Beach.
“As the import accommodation fee, the goal of this empty container program is not to collect fees, but to free up space on the docks, so that more ships can dock and improve,” said Mr. Seroka.
Manh Nguyen
The Port of Los Angeles is on track to break a record for cargo volume
