Port of Los Angeles begins FINING shipping lines for $ 100 per day per container for empty abandonment

Cargo thefts along the west coast – home to the country’s largest ports – have jumped 42% since last year.

The correlation between the deadlock in California’s ports and the increase in crime did not come as a shock to crime and theft specialist Scott Cornell.

“The more the supply chain in general is safeguarded, the more cargo you will have and that will create a greater opportunity for theft,” said Travelers insurance crime and theft specialist Scott Cornell. CBS MoneyWatch.

More than $ 5 million worth of consumer goods were stolen in California during the third quarter of 2021, according to the CargoNet cargo theft prevention and recovery network – another blow to the state’s besieged ports.

The ports of Los Angeles and Long Beach, which move about 40% of the cargo shipped entering the United States, are grappling with an unprecedented backlog that is slowing the country’s overall supply chain before the holidays.

There were 73 container ships at anchor on Monday and 29 container ships at the dock.

The backlog is exacerbated by thousands of empty shipping containers sitting at ports, creating a logistical nightmare for truckers trying to move product.

Meanwhile, the ports of Los Angeles and Long Beach have fired a warning shot against shippers who let their empty containers linger too long at the docks, saying they could soon charge up to $ 35,000 per month – per unit – for abandoned boxes.

More than $ 5 million in consumer goods were stolen in California in the third quarter, according to the CargoNet Cargo Theft Prevention and Recovery Network

It's another blow to the ports of Los Angeles and Long Beach, which are grappling with an unprecedented backlog that is slowing the nation's overall supply chain before the holidays.

It’s another blow to the ports of Los Angeles and Long Beach, which are grappling with an unprecedented backlog that is slowing the nation’s overall supply chain before the holidays.

California was the state most targeted by cargo thieves in the third quarter, CargoNet said in its latest supply chain analysis.

While cases of theft and fraud in the United States and Canada declined overall year over year, a 42% increase in thefts was seen on the West Coast.

California has led the country in cargo theft throughout the year, reporting 208 cases of cargo looting through September 30.

“This is no surprise, as California continues to struggle with frequent theft of high-end computer electronics shipments,” CargoNet said in a statement.

“… Cargo thieves continued to show a strong preference for computer electronics shipments and nearly 70 percent of those thefts in the third quarter of 2021 took place in California.”

Texas had the second highest rate of cargo theft this year with 162 reported cases in the first nine months of the year. Florida has recorded 117 cases

California topped the country in cargo theft in a trend driven largely by demand for electronics

California topped the country in cargo theft in a trend driven largely by demand for electronics

California reported 208 cargo thefts in the first nine months of 2021, far surpassing other states such as Texas, Florida and Illinois

California reported 208 cargo thefts in the first nine months of 2021, far surpassing other states such as Texas, Florida and Illinois

Electronics accounted for 49% of goods stolen in California, and household items made up an additional 15% of loot recovered, CargoNet said in its third quarter report.

Other items popular among criminals included clothing, accessories, food and drink.

Thieves most often moved in warehouses (27%), secure yards (15%) and roadsides (13%).

California freight carriers reported 62 thefts in the third quarter, for an average loss of $ 233,000 per crime, CargoNet said.

About $ 5.28 million in consumer goods were stolen during the period.

The ports of LA and Long Beach – collectively known as the San Pedro Bay Port Complex – were initially scheduled to start billing carriers on Monday for empty containers that have passed their welcome.

Massive congestion of vacant units monopolizes space in nearby truck lots, prevents movement of filled containers and cripples efficiency.

But leaders voted last Friday to postpone the imposition of fines until at least November 15 while they assess the situation.

Port of Los Angeles executive director Gene Seroka said authorities tried to get shippers to voluntarily comply with the removal of empty containers before resorting to a fine system.

Port of Los Angeles executive director Gene Seroka said authorities tried to get shippers to voluntarily comply with the removal of empty containers before resorting to a fine system.

If the rate structure is implemented, it will result in a charge of $ 100 per container per day for containers transported by truck or ship that have stayed nine days or more.

Containers continuing their train journey have six days to leave the terminal.

The fine system is progressive, increasing by $ 100 per day, which means that a carrier would be billed around $ 45,000 for letting a container sit a month after the deadline.

Gene Seroka, the port’s executive director, said authorities tried to lure shippers in with the carrot before turning to the stick.

“We tried diplomacy,” he said CNBC Tuesday. “We’ve tried collaboration, operations meetings all around, and nothing has moved the needle yet. It’s a last resort and I didn’t want to have to take it, but we’re starting to see some movement.

About 40% of import containers at the terminals have been idling for at least nine days, the Port of Long Beach said in a press release.

Before consumer demand exploded in mid-2020, containers typically stayed at terminals for less than four days.

All money raised through the fees will be spent on programs to help the port operate more efficiently and cope with the impacts of congestion, according to the press release.

“Our goal with this program is not to generate income,” said Los Angeles Harbor Commission Chairman Jaime Lee. “Instead, we need our supply chain partners to make operational changes that will reduce dwell times, clear our terminals and make room for ships waiting to enter our port.”

Transportation Secretary Pete Buttigieg (right) told Fox News' Chris Wallace (left) on Sunday that supply chain challenges will continue until the COVID-19 pandemic is over

Transportation Secretary Pete Buttigieg (right) told Fox News’ Chris Wallace (left) on Sunday that supply chain challenges will continue until the COVID-19 pandemic is over

The nearly empty shelves of the New York drugstore and convenience store are seen on October 26

The nearly empty shelves of the New York drugstore and convenience store are seen on October 26

There were 73 container ships at anchor in the ports of Los Angeles and Long Beach on Monday

There were 73 container ships at anchor in the ports of Los Angeles and Long Beach on Monday

Transportation Secretary Pete Buttigieg said on Sunday that the supply chain crisis will continue at least until the end of the COVID-19 pandemic amid fears of shortages ahead of the winter recess.

“There will definitely continue to be problems, especially as long as the pandemic continues,” Buttigieg said Fox News Sunday.

“If you have, for example, the third largest container port in the world in China that is closing due to a COVID outbreak in late summer, you will feel like in the fall here on the West Coast.”

He said that if politicians, ports and industry leaders take all the necessary steps to tackle the supply crisis, it will take time to catch up, especially as the appetite of consumers grows. consumers for imported products increases.

“… If we are serious about seeing all of this disruption end, we have to end the pandemic,” he said. It is the goal to get everyone vaccinated.