In an effort to ease congestion at the nation’s busiest port complex, officials said Monday that they will start fining shipping companies whose cargo containers linger for too long at marine terminals.
The twin ports of Los Angeles and Long Beach said in a statement that arriving containers scheduled to be moved by truck will be allowed to stay for nine days before fines start accruing. Containers set to move by rail can stay at the port for three days.
After that, ocean carriers will be charged $100 per container, increasing in $100 increments per container per day, the statement said. The new rules will go into effect on November 1.
It sounds like the ports are trying to increase their wealth, rather than solving the problem. It doesn’t matter the amount of the fine, you have to have availability of equipment to resolve this problem. What happens when the fines exceed the profitability?
“The terminals are running out of space, and this will make room for the containers sitting on those ships at anchor,” Port of Long Beach Executive Director Mario Coredero said in the statement. Not sure I understand this statement…
It’s the latest step aimed at relieving the log jam of cargo ships that has interrupted the global supply chain. The backlog prompted the Biden administration to allow the port complex to operate 24 hours a day to try to get good unloaded and out to consumers.
I assure you that Biden showing up was all show and no go. He has nothing to do with when the ports are open are for how long. The major problem is the shortage of chassis that the containers ride on. When a container is taken off a ship, it is put on a stack of existing loaded containers until a chassis is available for the container to be put on. In other words, it is the wheels the container rolls on. Without the chassis, the container goes nowhere. There may be a shortage of tractors, but there are probably enough tractors and drivers to reduce the problem at L.A. and Long Beach ports with the availability of chassis.
If nothing else, the truckers should check with the Port of Oakland and the Port of Seattle to see if there are available empty chassis in those ports. Also, Container cargo ship companies should be checking with these ports to see if they can get unloaded in either of these ports. Or even reroute some of their ships that are inbound to the west coast to one of these other ports. Not sure of availability in Seattle, but would be worth checking.
Officials at the Port of Oakland are calling on shipping lines to route more cargo to the “congestion-free” Bay area port as supply chains problems continue to plague ports in Southern California and elsewhere in the country.
An example of this is from a statement from Port of Oakland maritime Director Bran Brandes who said last week, “There’s no congestion at the Oakland seaport, and we’re ready for more business. We need carriers to reinstate services in order to stabilize the supply chain, and our import and export partners echo this sentiment.”
Despite reporting a 4.2 percent increase in containerized cargo volumes so far in 2021, Port of Oakland says it now has spare capacity for ships as there have been no vessel backlogs since August.
Politics has nothing to do with transportation. Joe Biden doesn’t know what he is doing talking to anyone at a port. He is not a transportation or logistic expert, or an expert in any other thing I can find.
His appointee as United States Secretary of Transportation, Pete Buttigieg, who hasn’t worked a day since appointed, because he is on paternity leave, has no clue either.
Typically, about 40% of all shipping containers entering the U.S. come through the Los Angeles and Long Beach ports.
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Or Florida?
And speaking of Pete Buttigieg, have you noticed his resemblance to Mr. Bean?
So much of the disfunction can be laid at California regulations and union demands. Truckers can’t make a living when they have to have a truck which is less than 10years old, private owner operators have to be “employed” by another company(union fee). The gulf coast is open for business, Texas, Louisiana, Mississippi, Alabama and Florida are all open for business, come on over.