As of November 1st, 2021, the ports of Los Angeles and Long Beach will charge $100 per container for boxes that dwell nine days or longer that move by truck, or boxes that dwell six days or longer that move by rail. The fee will rise by $100 every day after that. For businesses, this unexpected fee will raise their costs and cut into profit margins.
The ports will charge the carriers for the delays. In turn, the carriers will undoubtedly pass long these fees to shippers.
Officials from both ports jointly announced the fees on October 25th, 2021. At the time the ports announced the charges, 94,142 containers were at the Los Angeles port. Thirty percent of those containers had been at the port for at least 13 days.
Why are the ports turning to exorbitant emergency fees? Decision makers believe these charges will significantly reduce the backlog at these ports, which are now operating 24 hours a day to move shipments through the supply chain. Moreover, these fees have received the blessing of the Biden administration.
These fees will be re-invested into programs designed to enhance port efficiency, accelerate cargo velocity, and address the impact of congestion throughout the San Pedro Bay.