Ports of LA/Long Beach Congestion Excess Dwell Fee Delayed to November 22nd
Congestion Excess Dwell Fee assessments at the ports of Los Angeles and Long Beach, which were scheduled to begin Nov. 15 for all containers that have been on dock at least nine days, will now take effect Nov. 22.
“We’re encouraged by the progress our supply chain partners have made in helping our terminals shed long-dwelling import containers. Clearly, everyone is working together to speed the movement of cargo and reduce the backlog of ships off the coast as quickly as possible,” said Port of Long Beach Executive Director Mario Cordero in a Nov. 15 statement.
“I’m grateful to the many nodes of the supply chain, from shipping lines, marine terminals, trucks and cargo owners, for their increased collaborative efforts. We will continue to closely monitor the data as we approach Nov. 22,” added Port of Los Angeles Executive Director Gene Seroka.
Since the fee was first announced by the Southern California ports on Oct. 25, the port authorities have experienced a decline of 26 percent combined in cargo sitting on their docks.
The fee is currently set at $100 per container, increasing in $100 increments per container per day of excess dwell time beyond the prescribed period. The fee assessed on the ocean carriers is based on the published tariffs set by the ports of Los Angeles and Long Beach.
Additionally, on-dock rail containers have five free days, while off-dock rail has eight free days.
NVOCCs should contact their ocean carriers to determine which category their cargo falls under and how/if they will be charged the fee.
NCBFAA Transportation Counsel Venable anticipates that once implemented vessel-operating common carriers (VOCCs) will begin to offset this charge and pass it along to NVOCCs, subject to the 30-day waiting period for tariff rate increases as required by the Shipping Act. NVOCCs should therefore expect to be assessed the additional charges on or about Dec. 1. NVOCCs have several options for mitigating the charge including (i) amending their Negotiated Rate Arrangements (NRAs) with shippers to pass through the charges; (ii) amending their NVOCC Service Arrangement (NSAs) with shippers to offset the charges; and (iii) updating their tariffs to offset the charges, subject to the waiting period. These amendments and changes to mitigate the charges must be made in a form compliant with the Shipping Act and Federal Maritime Commission (FMC) regulations.
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Source: National Customs Brokers & Forwarders Association of America, Inc. (NCBFAA)
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