The respective Boards of Harbor Commissioners for Los Angeles and Long Beach have approved the implementation of an “emergency” storage fee. The fee has been implemented under the direction of President Biden’s Supply Chain Disruptions Task Force and is designed to force shipping lines to clear long-dwelling containers from congested terminals.
The surcharge officially came into effect on Monday 1st November, however ports will not assess penalties until at least Monday 15th November.
The emergency fee, in effect for 90 days, will be assessed against cargoes dwelling on port terminals in excess of specified periods:
- For cargoes designated for movement by truck remaining on port nine or more days after discharge
- For cargoes designated for movement by rail remaining on port six or more days after discharge
- The fee of $100 per container increases in increments of $100 per container per day (e.g. on Day 9, $200 per container, on Day 10, $300 per container) and is compounded each day (e.g. the total fee on Day 9 is $100 and the total fee on Day 10 is $300)
Carriers have made it clear that they will not absorb the fees, and instead will pass them on to customers. The move could potentially lead to a significant level of additional costs, with 40% of imported containers dwelling for nine days or longer.
Revenue from the fees will be reinvested by the ports in programmes designed to enhance efficiency, accelerate cargo velocity and address the impact of congestion.
We continue to monitor the situation and will keep you updated. Please contact our Customer teams with any enquiries relating to specific bookings.