Ports of LA/Long Beach Impose Cargo Fee on Carriers

On November 1, the Ports of Los Angeles/Long Beach imposed a new $100 fee on carriers that fail to remove cargo from the ports. The purpose of the new fee is to incentivize carriers to remove cargo from the ports so there is room to return empty containers and unload the dozens of ships waiting out in San Pedro Bay. As TGA predicted, carriers are passing-through the new fees directly to shippers — See CMA-CGMCOSCOMaersk (See Questions #11 and #13)Yang Ming (See Questions #8 and #11)Zim. At least 59,000 containers are subject to the new fee, which translates to $5.9 million in fees on Day 1 alone, impacting small shippers the worst. TGA is using as a proof-point with the White House and others that the new fee will only create more headaches for shippers without resolving anything, and that other approaches must be implemented, but those approaches must have the cooperation of all stakeholders to work.