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Ports of LA, Long Beach delay cargo fee again

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The ports of Los Angeles and Long Beach have again postponed implementing a fee on companies whose import containers linger at marine terminals, with the assessment now potentially taking effect, if necessary, next week.

The Container Dwell Fee has been delayed numerous times due to progress in reducing the number of containers at the terminals — with the ports reporting Friday, Feb. 25, a 69% combined decline in aging cargo on the docks since the fee was announced in late October.

Over the next week, port officials will monitor and reassess the fee’s implementation.

The implementation was announced Oct. 25 and was initially set to go into effect Nov. 1. But officials quickly delayed it until Nov. 15 to give ocean carriers time to comply. WHen Nov. 15 came, however, the ports delayed the fee to Nov. 22. The ports delaying the fee has been a weekly routine ever since.

The fee is one of several efforts aimed at speeding the processing of cargo at the San Pedro Port Complex to eliminate a backlog of ships trying to deliver merchandise. Port of Los Angeles officials said when the policy was announced that about 40% of import containers were idling at terminals for at least nine days.

Harbor commissions for both Long Beach and Los Angeles unanimously approved the policy on Oct. 29, to be in effect for 90 days. The pilot program has since been extended through April 29.

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The fines, if implemented, will begin at $100 per container, increasing by $100 per container each day. Containers set to be transported by truck and rail will incur fines if they remain at the port for nine days or more.

Fees collected from the policy will be reinvested into programs that aim to enhance efficiency, accelerate cargo velocity and address congestion impacts.

On Dec. 30, the ports announced an additional planned fee on carriers with empty containers that linger for at least nine days on marine terminals. But officials remain in talks with key stakeholders.

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