Ocean Carriers to pass on LA/LB New Container Excess Dwell Fee Charges to shippers

Ocean carriers are reacting to the new temporary storage charges that the Port of Los Angeles and Long Beach implemented the first of this month as mentioned in last week’s operations update here.

Under the 90 day policy, the Port of Los Angeles and Long Beach will charge ocean carriers for import containers that are scheduled to move by truck if they remain on the terminal nine days or more, and for containers moving by rail, if they remain at the terminal for six days or more. 

​​​​​The container excess dwell fee will be $100 per container at 6 days (rail-moves) or 9 days (truck-moves), increasing by $100 per day until the container leaves the terminal.  After an initial grace period, the penalties will start to be assessed on November 15th, 2021. 

Read the full details in the press release from Port of Los Angeles here.  

Carriers are still working with the terminals and the Biden-Harris Supply Chain Disruptions Task Force to clarify more details about this new policy, including how the fees will be assessed or collected. 

However it is clear that ocean carriers will pass on all costs through to shippers.

Hamburg Sud has outlined some of the likely questions about the policy, including important information that the charges would apply on weekends, holidays, customs exams holds, etc.  Read the Hamburg Sud news release here.

Mediterranean Shipping Company (MSC) has also issued a notification yesterday underlining that these costs will be ultimately passed through to shippers.  Read the MSC notice here. 

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For more information on bookings for pending shipments, including alternative shipping ports or air freight options for urgent orders, please reach out to your Hillebrand representative for more information.