California Ports to Phase Out Container Dwell Fee Program
The Los Angeles and Long Beach ports will end a program that could have eventually imposed surcharges on dwelling containers, the ports announced Dec. 16. The fee program was meant to incentivize the movement of dwelling containers (see 2110280031), but the ports never implemented it and instead postponed it weekly (see 2207220051) and later monthly (see 2211180061) since it was first announced in October 2021 (see 2207290053).
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Since then, the ports said they have seen a combined 92% decline "in aging cargo" at the docks. "While the executive directors of both ports have had the authority from their respective harbor commissions to implement the fee, it was never activated because cargo owners were able to clear their long-dwelling cargo off terminals," the ports said. The ports plan to officially end the fee program Jan. 24.
“I said when we launched this program that I hoped we would never collect a dime because that would mean that containers were moving off our docks. And that’s exactly what occurred,” said Gene Seroka, executive director for the Port of Los Angeles. “I’m grateful to the cargo owners and all our waterfront workers for all their successful efforts to improve the efficiency of our operations.”