Ports again delay container 'dwell' fee as progress continues

Port
FILE - Cargo containers wait to be transported after being off loaded at the Port of Los Angeles on Oct. 16, 2021 in San Pedro, Calif. Photo credit © Robert Hanashiro / USA TODAY NETWORK

SAN PEDRO, Calif. (KNX) — Dwell fees have again been delayed at the ports of Los Angeles and Long Beach, as officials report continued progress on the shipping container backlog. Fees will now go into effect on Jan. 10.

"Since the program was announced on Oct. 25, the two ports have seen a combined decline of 35% in aging cargo on the docks. As expected, year-end holidays have slowed the progress compared to previous weeks," L.A. port officials said in a statement Monday.

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Under the temporary policy approved Oct. 29 by the Harbor Commissions of both ports, ocean carriers can be charged for each import container that falls into one of two categories: In the case of containers scheduled to move by truck, ocean carriers could be charged for every container dwelling nine days or more.

For containers moving by rail, ocean carriers could be charged if a container has dwelled for six days or more. Currently, no date has been set to start the count with respect to container dwell time.

"Before the pandemic-induced import surge began in mid-2020, on average, containers for local delivery remained on container terminals under four days, while containers destined for trains dwelled less than two days," port officials said in a statement.

So far, no fees have been collected, as the policy has been delayed at least six times due to progress since before it was implemented.

Any fees collected from dwelling cargo will be reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts, officials said.

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Featured Image Photo Credit: © Robert Hanashiro / USA TODAY NETWORK