The ports of Los Angeles and Long Beach again postponed a new surcharge meant to incentivize the movement of dwelling containers, the two ports announced Dec. 13. The ports originally planned to begin imposing the fee Nov. 15 (see 2111030027) but have postponed it several times (see 2111290039 and 2112060041). Both ports said they've seen a combined decline of 47% in aging cargo on their docks since the fee was announced in October (see 2110280031). The latest extension delays the effective date to Dec. 20.
Barring a steep drop in demand, port congestion and supply chain problems are unlikely to improve next year, and shippers should continue to expect container issues and equipment shortages, Flexport CEO Ryan Peterson said. But companies can take steps to mitigate issues caused by delays and high container fees, including routing shipments away from highly congested ports and minimizing empty space in containers.
The International Longshore and Warehouse Union has rejected a proposal from the Pacific Maritime Association to extend its current labor contract, according to a Nov. 23 report from Bloomberg. That sets up potentially contentious negotiations between the labor union, which represents West Coast dockworkers, and terminal operators and carriers on the West Coast, amid existing supply chain challenges. The current contract, which had already been extended one year, expires mid-2022.
The Federal Maritime Commission will convene six supply chain innovation teams to find improvements in the container return and delivery process at marine terminals, the FMC said Nov. 17. The announcement, made by Commissioner Rebecca Dye this week, is aimed at “improving conditions” at the ports of Los Angeles and Long Beach in California and at the Port of New York and New Jersey. The teams will be composed of ocean carrier executives and marine terminal operators.
Terminal operators at the Los Angeles and Long Beach ports in California soon will impose a “traffic mitigation fee” to incentivize the movement of containers during off-peak hours. The fee -- announced Nov. 10 by the West Coast Marine Terminal Operator Agreement, a group of 12 container terminals in the L.A.-Long Beach region -- will be imposed Dec. 1 to Jan. 31, 2022, from 7 a.m. to 5:59 p.m. Monday through Friday. The terminals will charge $78.23 per 20-foot equivalent unit or $156.46 for “all other sizes of container for non-exempt international container moves through the terminals.” The fee is “subject to regulatory clearance” by the Federal Maritime Commission, the WCMTOA said.
Non-vessel-operating common carriers should soon begin seeing the effects of the recently announced surcharges at two California ports (see 2111030027), the National Customs Brokers & Forwarders Association of America said in a Nov. 4 email to members. But the group also said non-vessel-operating common carriers have options to mitigate the charges.
The threat of a new surcharge meant to more quickly move dwelling containers at California ports is already working, Port of Los Angeles Executive Director Gene Seroka told Splash 247.com. The ports of L.A. and Long Beach announced the fee last week and said they would start imposing fines Nov. 15, but Seroka said the ports may not have to follow through if “progress is being made clearing our docks,” according to the Nov. 3 report. Seroka also said the charge was a “last resort” after ports “tried diplomacy, we’ve tried collaboration, operations meetings all around.” Shippers strongly opposed the surcharge (see 2110280031).
Dwell time for rail cargo at the Port of Los Angeles has dropped from its peak of 13 days down to about four days, the port said Oct. 6. Supply chain disruptions caused by the COVID-19 pandemic have caused port congestion and delays for more than a year, especially near Los Angeles, where dozens of anchored ships face delays (see 2109200048 and 2102020050).
The Federal Maritime Commission is proposing to modernize and clarify some requirements associated with the filing of marine terminal operator schedules, the FMC said Sept. 21. The proposed changes are “non-policy related” and are intended to update “outdated” requirements while making the “existing requirements and definitions consistent with other parts” of the FMC’s regulations. The changes include a clarification to the definition of “bulk cargo,” a revision to the definition of “marine terminal operator,” and a removal of other “unnecessary language relating to accessing electronically published MTO schedules.” Comments are due Nov. 22.
The Federal Maritime Commission approved some recommendations made by Commissioner Rebecca Dye in July to address ocean freight delivery and port issues (see 2107290021), the commission said Sept. 25. Under one recommendation, the FMC will issue a “policy statement” to provide guidance to shippers seeking to obtain reparations for violations of the Shipping Act, including unfair detention and demurrage fees. The statement will provide guidance on the “scope of the prohibition against carrier retaliation,” when attorney fees may be imposed on the losing party, and who may file a complaint with the FMC.