The Container Dwell Fee has been postponed repeatedly for the Ports of Los Angeles and Long Beach, California, but that may not be the case much longer. Come February 25, 2022, they are planning to reconsider its possible imposition again to get congestion down to a more manageable level. After monitoring the data for a week, the executive directors of both ports will be reassessing the fee implementation, which has been postponed since its announcement on October 25, 2021. While it still remains a threat to the industry, neither port has seen those fees applied as of yet.
On October 29, the Harbor Commissions of both ports approved a temporary policy that ocean carriers can be charged for each import container that falls into one of two categories:
- Moved By Truck – carriers will be charged for every container dwelling for nine days or more with no cap
- Moved by Rail – ocean carriers will be charged for every container dwelling for six days or more with no cap
Starting at $100 per container, this charge will increase per day per container in $100 increments until the container is moved. The fees collected from the dwelling cargo will be ‘reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.’
The fees were never fully implemented as the announcement appeared to be enough that many containers started to move and alleviate the bottleneck. Unfortunately, the delays for ships waiting in San Pedro Bay and rail traffic haven’t abated and the fees appear to be a secondary reason for the reduction in traffic, behind so many ships diverting to the east coast – a move which is driving up delays and congestion everywhere else.
While we wait for confirmation, Sobel will continue to monitor the application of the Container Dwelling Fees fees in LA/LB ports and ensure you stay in the loop when it comes to how they may affect you and your cargo. If you have any questions regarding these fees and if they apply to you, or when they will take effect, please contact your Sobel representative today.
