California ports delay imposing unprecedented fees on carriers

Vehicles arrive to choose up containers on the Port of Los Angeles, November 22, 2021.

Mike Blake | Reuters

WASHINGTON – The nation’s busiest port complicated will delay imposing unprecedented charges on transport carriers, citing latest progress in addressing the backlog of cargo ships and containers off the California coast.

The dual ports of Lengthy Seashore and Los Angeles, which account for 40% of sea freight getting into america, are working across the clock to handle transport container congestion brought on partly by a world shutdown following the coronavirus outbreak.

The fines, which had been introduced in a joint assertion from each port administrators on Oct. 25, cost carriers $100 a day per container left on the dock. Carriers would have a most of 9 days to maneuver containers by truck earlier than fines begin accruing and 6 days if transporting by rail.

For the reason that announcement of the brand new charges, known as “container dwell charges,” each ports have seen lingering cargo containers diminished by 37%. The manager administrators of each ports will monitor progress and announce whether or not they may impose charges on Dec. 13, in line with a joint assertion launched on Monday.

In an interview final month, Cordero informed CNBC that whereas ramping up operations has helped relieve the logjam, there are nonetheless different points to handle within the provide chain.

“There are truckers, marine terminal operators, warehouses, railroads and port authorities,” defined Cordero, including {that a} lasting resolution would entail “an actual collaborative effort” from all events.

“That can take time however the excellent news is there is a very sturdy dialog with regard to the necessity to have a transformational change.”

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