On Wednesday, October 13, 2021, trucks pass by containers at the Port of Los Angeles in Los Angeles, California, USA.
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 joint statement on Monday that since the new fees were announced 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 came at the same time that the United States was responding to the 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.
The Biden administration plans to operate 24/7 at the ports of Los Angeles and Long Beach to immediately address 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. Based on these deadlines, the carrier will charge $100 per day for each stranded container.
“There is not enough space in the terminal, which will make room for the containers anchored on those ships,” Long Beach Executive Director Mario Cordero explained in a statement announcing the measure at the time.
As the port reported progress in cleaning up the containers, the fee has been delayed several times since the announcement.
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