US Ports Impose Empty Container Stay Fees on Shipping Lines to Improve Supply Chain

US ports and the White House plan to introduce a new levy on long-lived empty containers to tackle the supply chain crisis.

In particular, the Ports of Los Angeles and Long Beach announced a new levy on long-lived empty containers, building on the success of the levy imposed on long-lived import containers in November, said John Porcari, sent from the port of the White House.

The Port of Los Angeles plans to start charging fees to shipping carriers that allow empty containers to linger at the port’s marine terminals for nine days or more. The fee, subject to approval by the Los Angeles Harbor Commission, would take effect on January 30, 2022.

Under the policy, ocean carriers will be charged $100 for empty container accommodation for nine days, increasing in increments of $100 per container per day until the container leaves the terminal.

The Port of Los Angeles Commission will review the program at its January 13 board meeting.

“While we have seen significant success in reducing import containers at our docks over the past two months, too many empty containers are currently sitting at marine terminals,” the Port of Los Angeles executive director said. , Gene Seroka.

“Like the import fee, the purpose of this empty container program is not to collect fees but to free up valuable space on our docks, clearing the way for more ships and improving fluidity”.

As a reminder, the port announced a similar program on October 25, 2021 for pending import containers. However, following a 54% drop in aging goods at the docks, the port has delayed enacting the levy and it is on hold until January 10.

The policy was developed in coordination with the Biden-Harris Supply Chain Disruption Task Force, the U.S. Department of Transportation, the Port of Los Angeles and several supply chain stakeholders.

The legislation, known as the Bipartisan Infrastructure Deal, was also passed to invest $17 billion to modernize ports, strengthen supply chains and cut costs, reduce emissions and drive electrification and other low carbon technologies.

At the beginning of December 2021, the transport and logistics company CMA CGM also set up the Early Container Pickup incentive program which will last for 90 days.

The incentive is offered to importers who collect their container via merchant transportation from all terminals in Los Angeles and Long Beach within the first eight days, with the aim of using it to offset the costs incurred by strains on their supply chains.

It includes $100 per container for daytime pickup Monday through Friday and $200 per container at night and weekends.

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