The Ports of Los Angeles and the Port of Long Beach will soon hit sea carriers, which can result in high charges for freight containers that are too long for the terminal. This is yet another major effort to resolve the supply chain backlog that cargo ships spend days waiting for docking at sea.Empty container Block the streets of nearby Wilmington And the warehouse is overflowing.
The joint announcement on Monday afternoon, October 25, highlighted growing official dissatisfaction with the two busiest ports in the United States (not to mention the federal government) as a supply chain bottleneck. No signs of decline, Intimidation Holiday shopping season Economic recovery from the coronavirus pandemic.
“We must facilitate the movement of cargo through the port to reduce the number of ships at berth,” LA Port Secretary-General Gene Seroka said in a written announcement.
The new policy, which will come into effect on November 1, will charge marine carriers for trucking containers that stop at the terminal for 9 days or more and containers that depart on rail for 3 days or more. The fee is $ 100 per container. However, charges will increase by as much as $ 100 per container per day beyond these minimum thresholds.
Recently, officials said the Port of LA found 94,142 containers in the dock. Almost 40% of them sat there for more than 9 days. About 8% sat for 9-12 days. And 30% (or about 28,243 containers) were there for at least 13 days.
Under future charges, 30% of containers that stay in the port for at least 13 days will cost a shipping company of at least $ 14 million per day.
No immediately available data was available from Long Beach Port.
Port officials could not get any additional comments other than the first written statement, and the Pacific Merchant Shipping Association on behalf of the shipper did not respond immediately to charges when contacted by phone on Monday night. It was.
However, the containers piled up in the port are one of the problems that plague the supply chain.
The International Longshore and Warehouse Union is unloading ships as quickly as possible, union leaders and workers said, but demands unloading from one ship until the unloading cargo is unloaded. There is no room.
According to workers, there is no space to process waiting cargo any faster.
However, it is not entirely clear what sea carriers can do to move containers out of the port more quickly.
Many of these issues were part of the authorities’ long-standing concerns about supply chain vulnerabilities, but were significant last year as the port of Los Angeles and Long Beach were hit by a massive pandemic-related cargo surge. It became a problem. ..
By September of this year, 24.3% more cargo was seen at Long Beach Port compared to the same period in 2020. It is up 26% at LA Harbor.
As a result, the supply chain is clogged.
For example, consider the dwell time of trucks and railroads.
According to recent data, the dwell time of cargo departing by rail has improved recently, but truck pickup times have slowed, and that section of the supply chain does not have enough chassis to load cargo. Facing the problem.
Before the surge in imports began in mid-2020, containers stopped at the terminal within four days, waiting for trucks to pick up. The train container sat for less than two days.
Earlier this year, railroad dwell times reached a high of 13.5 days on average. Seloka said in mid-October.. By September, that number had dropped to 5.5, according to the latest PMSA data. However, truck dwell times reached an average of 5.94 days.
Among other results The freighter had to spend days Waiting for the dock to open along the coast of Southern California — and waiting longer for the cargo to be unloaded.
According to the Southern California Marine Exchange, the port set a record on Sunday and 80 container ships are moored. It basically functions as a port air traffic controller.
There were a total of 107 anchors on Monday, including container ships, and 57 berths.
Container ships spent an average of 12.8 days waiting for docking, according to LA’s latest port data. And the moving average of the number of berths on Monday was 8 days.
Mario Cordero, Managing Director of the Port of Long Beach, said in a statement, “The increasing backlog of vessels offshore requires immediate action to encourage the rapid removal of containers from the marine terminal. “. “There is not enough space in the terminal to make room for the containers moored on these vessels.”
This policy was developed in collaboration with the Biden-Harris Supply Chain Confusion Task Force, the US Department of Transportation, and multiple supply chain stakeholders.
President Joe Biden and executives meet with both port directors in Washington, DC on October 13, and Biden will be at the Los Angeles Harbor. 24/7 operation..
According to a joint announcement from the ports, the tolls collected will be reinvested by the two ports for a program designed to increase efficiency, accelerate cargo speeds and address the effects of congestion throughout San Pedro Bay. increase.
The Task Force’s appointed port envoy, John Polkari, said in a statement Monday that authorities hope the push to tariffs will help move the supply chain.
“These actions are aimed at facilitating the movement of goods and reducing port congestion,” Porcari said. “This year, a new record in throughput was set at the West Coast port, but we need more players across our supply chain to continue stepping up.”
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