LA and Long Beach Ports Will Levy Fines for Container Backlog
The twin ports of Los Angeles and Long Beach said in a statement that arriving containers scheduled to be moved by trucks will be allowed to stay for nine days before fines start accruing. Containers set to move by rail can stay at the ports for three days.
After that, ocean carriers will be charged $100 per container, increasing in $100 increments per container per day, the statement said.
The new rules go into effect on Monday, Nov. 1.
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Fines Follow Actions by Biden, Newsom
“The terminals are running out of space, and this will make room for the containers sitting on those ships at anchor,” Port of Long Beach Executive Director Mario Cordero said in the statement.
It’s the latest step aimed at relieving the logjam of cargo ships that has interrupted the global supply chain. The backlog prompted the Biden administration to allow the port complex to operate 24 hours a day to try to get goods unloaded and out to consumers.
About 40% of all shipping containers entering the U.S. come through the Los Angeles and Long Beach ports.
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Newsom’s Orders on Cargo Logjam
On Oct. 20, Gov. Gavin Newsom issued an order that aims to ease the bottlenecks that have spilled over into neighborhoods with cargo trucks clogging residential streets.
Newsom’s order directed state agencies to identify state-owned properties and other locations that could be available to address short-term storage needs once goods are unloaded from ships.
The order also directed officials to identify priority freight routes to be considered for a temporary exemption to current gross vehicle limits to allow for trucks to carry additional goods. And it orders state agencies to create workforce training and education programs.
(GV Wire contributed to this article.)