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Los Angeles Harbor Commission extends 'container dwell fee'
The Los Angeles Harbor Commission voted 5-0 to extend a “Container Excess Dwell Fee” program directed at ocean carriers in a continued effort to improve cargo movement on container terminals.
The program was originally approved on Oct. 29, 2021 and was set to expire after 90 days. Thursday’s Harbor Commission action extends the dwell fee program until April 29. The Commission also amended the fee so that an import container moving by truck or rail can be charged the fee after nine days. Previously, containers bound for rail were subject to a fee after six days.
Implementation of the fee continues to be at the discretion of the Executive Director. To date, Port of Los Angeles Executive Director Gene Seroka has yet to use the Harbor Commission’s authority to trigger the fee.
“Since the announcement of the fee in October, import cargo lingering nine days or more has declined by 60% at the Port of Los Angeles,” Seroka said. “We’re very pleased with the progress, which is why the fee has not been enacted. Data will continue to be monitored daily as we work with our partners to find further efficiencies.”
Under the updated policy, the Port of Los Angeles has the authority to charge ocean carriers for each loaded import container dwelling nine days or more. The Port may charge ocean carriers $100 per container, increasing in $100 increments per container per day until the container leaves the terminal.
The Harbor Commission also was presented information on Thursday about a similar plan for empty containers, which the Port announced last month. Seroka outlined the plan to Harbor Commissioners, adding that Port has been in dialogue with a range of public and private stakeholders about the proposal. The presentation was informational only with no vote taken. Staff will consider all input before returning to the Harbor Commission for potential action.