The penalties on 58,900 containers at the ports of Los Angeles and Long Beach are officially racking up charges.
The agreement somewhat eases import costs as steel prices skyrocket and industries including construction have been left scrounging for supplies.
With a near-record 75 container ships waiting outside the U.S.’s largest port complex in southern California, unionized dockworkers have strengthened their indispensable role in the supply chain.
Harbor commissioners for the ports of Los Angeles and Long Beach on Friday unanimously approved a plan to penalize ocean carriers with a $100 surcharge, compounding daily, for containers that sit too long on marine terminals in an effort to clear backlogs that are preventing vessels from unloading c
Port authorities in Los Angeles and Long Beach plan to start assessing and collecting late fees on loaded import containers that remain on the docks for extended periods as soon as Nov. 15.
The Los Angeles and Long Beach harbor commissions are scheduled to meet in emergency sessions Friday to consider penalizing ocean carriers that don’t quickly evacuate loaded containers, in an effort to reduce backlogs that are crippling supply chains.
Delays in ocean logistics make holiday season orders placed now unlikely to arrive in time.
With congestion spreading to other ports across the United States, Maersk, MSC, and Zim announced that they will be omitting calls in Seattle due to the mounting delays at the port.
Logistics industry professionals say retailers and other cargo owners will ultimately bear the cost of drastic new fees announced Monday by the ports of Los Angeles and Long Beach in response to mounting congestion disrupting the entire U.S. economy.
Union Pacific and BNSF are taking additional steps to improve the fluidity of goods and products moving inland from the West Coast ports, including offering incentives to ocean carrier customers to move containers out of the ports on the weekends.