In an effort to speed up the processing of cargo and chip away at the backlog of ships trying to deliver merchandise, the ports of Long Beach and Los Angeles will soon begin to fine companies whose containers linger at marine terminals.
Containers set to be transported by truck will face fines if they remain at the port for nine days or more, according to a joint statement from the ports. Containers set to be moved by rail will face fines if the container is at the port for three days or more.
The charges begin on Nov. 1, and the porst said ocean carriers will be charged $100 per container, increasing in $100 increments per container every day that limits are exceeded.
"We must expedite the movement of cargo through the ports to work down the number of ships at anchor," Port of Los Angeles Executive Director Gene Seroka said in a statement. “If we can clear this idling cargo, we’ll have much more space on our terminals to accept empties, handle exports, and improve fluidity for the wide range of cargo owners who utilize our ports.”
Port of Long Beach Executive Director Mario Cordero supports the decision to charge fines, as the terminals are rapidly running out of space.
Fees collected from companies for dwelling cargo “will be re-invested by the two ports for programs designed to enhance efficiency, accelerate cargo velocity, and address congestion impacts throughout the San Pedro Bay,” according to the ports.
Before the COVID-19 pandemic, containers for local delivery sat for an average four days or less at terminals, port officials said. Those numbers increased dramatically due to a surge that began in mid-2020 and made it difficult to clear out cargo.
Earlier this month President Joe Biden announced that both the Long Beach and L.A. ports would ramp up operations to 24-hours a day to help clear out the backlog.
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