Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio.
Today I would like to talk about the theme, “LA and LB Ports Extend Overcharging for Overdue Containers”.
Daily Logistics Radio by IINO san in 15th Dec. 2021
Start of Fine Collection Postponed for the Fourth Time
At the end of October, they are planning to introduce a new regulation to charge fines for overdue containers at LA and LB ports in North America for early discharge.
The regulation was scheduled to start on November 1st, but it has been extended continuously, and now the start date has been extended until December 13th, which is the fourth extension.
In fact, this regulation made the number of long-stay containers reduced by 37%.
Collection of Fines
Fines begin to be collected on the ninth day after arrival at the port for truck pickup and on the sixth day for rail pickup.
It costs USD100 per container per day, rising to USD200 on the second day and USD300 on the third day.
It was reported that the congestion in the terminal is on an easing trend due to this fine.
Effects of Introducing the New Regulation
At its peak, there were about 70 ships waiting offshore, but as of December 6th, the number was cut in half to 35 ships.
If the start of fines continues to be postponed in this way, there is a possibility that importers will lose their sense of urgency. However, if the volume of container removals slows down, regulation will start and importers will rush to remove the containers.
Once the collection actually starts, the importers may be going to present the problem of chassis shortage and other issues, and there will likely cause trouble.
I will continue to update the information.