Article Image
IPFS News Link • Business/ Commerce

Ports Of Los Angeles, Long Beach To Fine Shipping Companies For Staying Too Long In Marine Terminals

•, by Katabella Roberts

Officials at San Pedro Bay Ports said in a statement that the fines are being imposed in an effort to "improve cargo movement amid congestion and record volume."

Starting on Nov. 1, the ports will charge shipping companies that fall into one of two categories: containers scheduled to move by truck and containers moving by rail.

In the case of containers scheduled to move by truck, shipping companies will be charged for every container that stays in marine terminals for nine days or longer. For those moving by rail, shipping companies will be charged if the container stays for three days or more.

Companies will incur a fine of $100 per container, which will increase in $100 increments per container per day. The fees collected will be re-invested into programs aimed at enhancing efficiency accelerating cargo velocity, and addressing congestion impacts throughout the San Pedro Bay, officials said.

"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.

 "Approximately 40 [percent] of the containers on our terminals today fall into the two categories. 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."

The new policy was developed in coordination with the Biden-Harris Supply Chain Disruptions Task Force as well as the  Department of Transportation and various supply chain stakeholders.