The Port of Los Angeles/Long Beach Commissions has implemented a new ‘Container Excess Dwell Fee’ that charges a penalty to Ocean Carriers which consists of $100 increments per container per day.
The reason of the fee is to increase fluidity at the terminal, and was voted on by The Port of LA, where board meeting notes can be found here: Container-Excess-Dwell-Fee-Presenation-102921.
Currently, this charge only applies to the Port of Long Beach & the Port of Los Angeles and will be reviewed again in 3 months time.
Ocean Carriers are set to pass down the Dwell Fee to importers.
Penalties will be charged at day 9 for each container that is moving by truck and day 3 for containers that are moving by rail. The penalty schedule after the grace period has expired will be as followed:
- 1st Day : $100
- 2nd Day : $200
- 3rd Day : $300
And then an additional $100 every day without limit. (Day 4 = $400 PER DAY, Day 5 = $500 PER DAY!)
Example – if a container that will be moved by truck stays at the terminal for 11 days, the charges will be calculated as below:
- Day 9 : $100
- Day 10 : $200
- Day 11 : $300
So to summarise, that is $600 in total for a container that moves on day 11, and given the average removal time is 13-14 days, this is a huge blow to importers who now have to calculate another increase on top of what freight rate is agreed.
This could mean on average, an extra $1500-2100 at least.
Days are counted by calendar days and include weekends and holidays.
These fees must be paid to the terminal before the shipment will be released.
This policy will begin on November 1 with fines beginning November 15 and scheduled to last at least 90 days depending on the future situation of port.
LCL Shipments: We will need to take the total container cost incurred, and re-charge a pro-rated amount to LCL clients per cbm.
Whilst we realise this is demoralising and somewhat ludicrous, we please ask for understanding this is not Westbound Logistics’ charge, or any other forwarder/trucker. We cannot be held responsible for the time it takes to remove containers from port, but share the eagerness to do so as quickly as possible. It is not in our interest to incur more charges for our customers.
Thank you for your understanding and cooperation during this challenging time. We will be working around the clock to minimise these charges for all of our customers.
At Westbound Logistics we pride ourselves in offering personalised and tailored logistics solutions. To find out more please call 01375 800800 or email info@westboundglobal.com.
