· This week Los Angeles (LA) and Long Beach (LGB) have started to put forth some plans to get cargo that has been dwelling at the port past free time moved as soon as possible. They have set forth a two-part plan to get carriers more involved to help improve the backlog at the terminal which will of course help provide additional needed port space for cargo waiting to be unloaded.
· The first part of the plan put forth is to force carriers to move as much of the pileup of shipments still at port past last free day. Carriers were asked to get 60,000 containers moved prior to October 31, 2021.
· The second portion of the plan is starting to charge a $100 emergency fee or surcharge to carriers effective Monday November 1, 2021 for any remaining cargo that has remained at the port for 9 days or more. The first day will be charged at $100 however an additional penalty is charged per day after of $100. As an example, the first day a container has dwelled for 9 days there is a $100 fee, if it remains at the port day two is a total cost of $300, a third day would be charged $600 and $1,000 charged for a fourth day on the port.
· Carriers have advised they do not accept these charges and if required to pay the emergency storage fee they will pass them on to major retailers. The board of the harbor commissions are going to review and formally vote in the this updated measure at the ports of LA and LGB today.
Friday October 29, 2021
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