The person in charge of the port said that the California terminal has made “significant progress” in the backlog of the supply chain.

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On Wednesday, October 6, 2021, a container ship offshored the Long Beach/Los Angeles Port Complex in Long Beach, California.

Jeff Grichen | Media Group | Getty Images

WASHINGTON-The executive director of the Port of Long Beach said on Wednesday that the two ports in California are making “significant progress” in resolving the backlog of cargo ships and containers.

“I think we are making some progress and hope that as we move into the next six months, we will continue to ease the situation we are seeing here,” Lang Harbor executive director Mario Cordero Beach in the “Squawk Box” show Told Becky Quick of CNBC.

Cordero said that the Long Beach and Los Angeles ports, which account for 40% of the sea into the United States, are unloading around the clock.

In order to solve the backlog of container ships, partly due to the congestion caused by the global shutdown after the coronavirus outbreak, two ports in California announced unprecedented charges for shipping companies.

The port directors of the two parties announced the fine in a joint statement on October 25. Each container left on the terminal will be charged $100 per day from the carrier. Before the fines begin to accumulate, the carrier has up to 9 days to transport the container by truck, or up to 6 days if it is transported by rail.

Since the announcement of new fees that have not yet been levied, the number of stranded cargo containers at the two ports has decreased by 33%. Cordero said there are still about 61 cargo ships waiting to be unloaded off the coast of California. According to data from the Ocean Exchange, this compares to the 111 ships that set a record two weeks ago.

After the Biden government planned to operate 24/7 at the ports of Los Angeles and Long Beach, the fines were called “container stay fees.” Cordero said that while increased operations will help ease the deadlock in the country’s busiest port complex, there are still other issues in the supply chain that need to be resolved.

“There are truck drivers, marine terminal operators, warehouses, railroads, and port authorities,” Cordero explained, adding that a durable solution requires “real cooperative efforts” from all parties.

“It will take time, but the good news is that there has been a very intense conversation about the need for transformational change.”


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