SAN PEDRO, Calif. – Oct. 29, 2021 – The Los Angeles Seaport Commission on Friday voted 4-0 to approve a "Container Excess Stay Fee" for ocean carriers to improve the volume of cargo at container terminals, a record number. The program begins on November 1, and penalties are assessed no earlier than November 15.
Under the 90-day policy, the Port of Los Angeles charges the ocean carrier for each imported container that falls into one of two categories: If the container is planned to be transported by truck, the ocean carrier will charge for each container stay of 9 days or more. For containers transported by rail, if the container stays for six days or more, a fee will be charged to the ocean carrier.
The port will charge both categories of ocean carriers $100 per container, with an additional $100 per container per day until the container leaves the terminal.
"Our goal for this project is not to generate revenue," said Jaime Lee, chairman of the Los Angeles Seaports Commission. "Instead, we need our supply chain partners to make operational changes to reduce dwell times, clean up our terminals and make room for ships waiting to enter our ports."
Gene Seroka, executive director of the Port of Los Angeles, said: "Starting Monday, we will take a daily snapshot of how long imported containers stay at our container terminals. "If our dock cleanup efforts make progress, I can, at my discretion, postpone the start of the charge until after November 15." Our goal is to see a significant improvement in our terminals so that we don't have to manage any fees. ”
Approximately 40% of imported containers on the terminal have been idle on the terminal for at least 9 days. Before the surge in imports caused by the mid-2020 pandemic, on average, containers delivered locally would stay at container terminals for less than four days, while containers destined for trains would have remained for less than two days.
Any fees charged from residential goods will be reinvested in programs designed to increase efficiency, speed up freight and address the impact of congestion.
The policy was developed in coordination with the Biden-Harris Supply Chain Disruption Task Force, the U.S. Department of Transportation, the Port of Long Beach, and multiple supply chain stakeholders.
The Long Beach Port Commission will consider a similar plan today.
The Port of Los Angeles, North America's leading seaport in container throughput and cargo value, facilitated $259 billion in trade in 2020. Integrated operations and commerce at the San Pedro Bay Port have boosted one in nine jobs and Ventura in Los Angeles, Orange, Riverside and San Bernardino counties. The Port of Los Angeles has remained open with all terminal operations throughout the COVID-19 pandemic.
