“Emergency Fee” at the Ports of Los Angeles and Long Beach

October 29, 2021

As a part of the effort to expedite cargo flow and help ease congestion at the port of Los Angeles and Long Beach, the Biden Administration has announced on October 25th that the ports will begin assessing an "Emergency Fee" on all long-dwelling import containers in the marine terminals at Los Angeles and Long Beach effective November 1, 2021.

The fee will be applied to all containers that remain at the terminal for 9 days or more and rail containers for 3 days or more. This charge applies in addition to the carrier's demurrage free time.

The cost is $100 per container on the first day past the set dwelling limit for terminal or rail and will increase by $100 increments for each day that follows (i.e., $200 for day 2, $300 for day 3, and so on).

The announced fees were developed in coordination with the White House's Supply Chain Disruptions Task Force, the U.S. Department of Transportation, and several supply chain stakeholders. The announced purpose of the "Emergency Fee" is to incentivize timely removal of cargoes from the San Pedro Bay terminals, improving the fluidity of the supply chain and reducing the critical level of congestion in the Ports of Los Angeles and Long Beach.

The Ports will collect those fees directly from Ocean Carriers and the revenue will be re-invested by the Ports for programs designed to enhance the efficiency, accelerate cargo velocity, and address the impact of congestion throughout San Pedro Bay.

The current congestion situation is having a severe impact on all that are involved in the transport chain. As the intent to begin assessing this charge had only been announced this week and with only a one-week lead time, several details are still being worked out by the Ports.

Please see the below links for additional information and to view the official Ports' announcements:

We will continue monitoring the situation and communicate the latest update as they are made available.

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