USPTI Customer Advisory NOV-03-2021
Ports of Los Angeles & Long Beach Emergency Surcharge
Container Excess Dwell Fee
November 3rd, 2021
Dear Valued USPTI Customer,
Due to terminal congestion, the historic record level of cargo volumes and in an effort to improve cargo movement, the ports of Los Angeles and Long Beach under the direction of President Biden’s Supply Chain Disruptions Task Force, have announced the assessment of an emergency fee on containers that dwell on marine terminals. As announced by the ports, this Container Excess Dwell Fee will be implemented on November 1, 2021, and the fee will be assessed no earlier than November 15, 2021.
The charge applies to:
- Port/Local containers that remain at the terminal 9 days or more.
- Rail containers that dwell for 6 days or more.
The fee is $100 per container for the first day, increasing in $100 increments per container per day (e.g., $200 for day 2, $300 for day 3 and so on).
That’s to say, if your container is idled for 30 days, the fee will be accumulated to $46500.
For further information please see the following releases:
Port of Los Angeles Press Release – LOS ANGELES HARBOR COMMISSION APPROVES PLAN TO CLEAR CARGO OFF DOCKS
Port of Long Beach Press Release – HARBOR COMMISSION ADOPTS MEASURE TO SPEED CARGO FLOW
Below please find the most frequently asked questions for the matter at hand. It must be noted that we are still checking for a full understanding of all the issues and as more information becomes available, we will do our utmost to keep you informed.
Thanks for your continue support and we will keep doing all we can do for your cargo smooth moving as always.
FREQUENTLY ASKED QUESTIONS
1.When will the fee come into effect?
Container Excess Dwell Fee will be effective on the 1st of November, but penalties will not be assessed until effective the 15th of November. This two-week grace period has been given to allow shippers with the appropriate time to clear the docks. Should material progress be made, it is at the discretion of the Port Executive Director to extend that effective fee assessment date even further.
2.Does it affect containers already on terminal (retroactive charges) or just containers discharging Nov 1 or later?
To the best of our knowledge, charges will be applied retroactively for all containers on terminal effective Nov 15th. That is, containers that are on the terminals as of November 15 that exceed either the 8-day or 5-day periods shall be subject to the fee regardless of the containers’ discharge date.
3.When do fees begin to accrue?
The fee will be assessed on all containers dwelling for 9 days or more on truck moves or for 6 days or more for rail bound containers. The charges will accrue on the 9th day and 6th day respectively.
4.What is the fee structure?
The fee will be $100 for day 1, $200 for day 2, $300 for day 3 and so on.
5.Will the fee apply on calendar days or working days?
The fee will be applied based on calendar days, inclusive of Saturdays, Sundays, and holidays.
6.Is there a maximum cap on the fee?
There is no maximum cap on the fee.
7.Who will bill the fee and how will it be collected?
We expect the port authorities to bill the Carrier for the fee. The fee will be collected from the customer by either Carrier’s direct invoice to the customer, or by the terminal operator who will act on behalf of the Carrier.
8.Are containers held by Customs for examination exempt from the fee?
We expect all containers will be subject to the fee irrespective of release status.
9.What if I am unable to pick up my container due to a lack of chassis, will the emergency surcharge be waived?
We are unfortunately unable to waive a government-mandated fee due to lack of chassis. For CY moves, the trucker nominated is responsible to secure chassis.
10.Will the fee apply to containers that are delayed loading onto the rail?
To the best of our knowledge, the Port of Los Angeles and Port of Long Beach will continue to assess the fee on containers that are delayed loading onto the rail.
11.Will the charge apply to containers where the rail providers are metering the flow of freight out due to congestion at inland rail points?
To the best of our knowledge, the Port of Los Angeles and Port of Long Beach will continue to assess the fee on containers not accepted by the rail due to congestion at inland rail points.
12.Will the Carrier be required to provide 30-days prior notice for the new fee?
Carrier will publish the new surcharge in its tariff which will be effective immediately upon publication.