California ports report on supply chain progress and delay fines for stranded cargo

The truck passes the container at the Port of Los Angeles, Los Angeles, California, USA on Wednesday, October 13, 2021.

Kyle Grillot | Bloomberg | Getty Images

Washington – The busiest port complex in the United States will once again postpone fines on carriers of stranded containers waiting to be picked up on the grounds that the supply chain has improved significantly since the end of last month.

The executive directors of the Ports of Los Angeles and Long Beach said in a statement Monday’s joint statement Since the announcement of the new fees in October, aging cargo on the port’s terminals has fallen by 33%.

The directors are “satisfied with the progress so far”, but will continue to monitor the situation and will re-evaluate the implementation of the fee next week. Black Friday and Cyber ​​Monday are the two biggest shopping days of the year.

This development occurred while the United States was responding to supply chain tightening, while American shoppers stepped up their purchases during the holiday gift-giving season. The administration of President Joe Biden is trying to ease the pressure on the supply chain because the originally strong US economy is struggling with inflation, labor shortages and rising rates of new coronavirus infections.

On October 25, the Ports of Los Angeles and Long Beach, which account for 40% of sea freight entering the United States, announced new tariffs aimed at alleviating the increasingly serious congestion of cargo ships.

Fines, known as “container stay fees,” follow the Biden government plan Operates 24/7 at the ports of Los Angeles and Long Beach In order to immediately solve the supply chain challenges and other disruptions affecting global commerce.

Before the fines begin to accumulate, the carrier will have 9 days to transport the container by truck, or 6 days if it is transported by rail. According to these deadlines, The operator will be charged $100 Each detained container every day.

“There is insufficient terminal space, which will make room for the containers anchored on these ships,” explained Mario Cordero, executive director of the Port of Long Beach In the statement Announce the measures at the time.

Cost already Delayed several times Since its announcement, the port has reported progress in clearing containers.

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