Following the increased congestion off Port of LA and Long Beach, container company Hapag-Lloyd issued some frequently asked questions concerning the situation at the ports.
When will the fee come into effect?
The program went into effect on November 1, 2021, but penalties will not start to be assessed until November 22, 2021.
Should progress be made before the assessment date of November 22, it is up to the discretion of the Executive Directors of the Ports on whether to extend the assessment date further. The progress is measured by the Ports daily.
Will the fee apply to containers retroactively to November 1, 2021?
The charge applied to those containers on the terminal from November 15, 2021, that are past the dwell times of 8 days for Import (truck Moves) and 5 days for Intermodal (Rail) Import.
For all existing overdue import containers (regardless of the number of days that they have been at the terminal), November 15 will count as the 9th day (or 6th day for intermodal) and will start at USD 100.
Containers discharging after November 15 will be charged fully as per the structure mentioned below.
How will the fee be assessed?
The fee will apply to 1) Import containers that remain on terminal 9 or more days after discharge, or 2) Import intermodal containers that remain on terminal 6 or more days after discharge.
What is the fee structure?
Containers that remain on terminal based upon the above criteria will be invoiced at a rate of USD 100 per container on day one.
Each additional day, the charge will increase by USD 100 per container until out-gated from the container terminal (for example, USD 100 for the first day and an additional USD 200 for the second day).
Will it be applied on a calendar day or working day basis?
This charge will be applied on a calendar day basis, inclusive of Saturdays, Sundays, and holidays.
Is there a maximum cap to this amount of this fee per container?
There is no maximum cap. The application of this fee will continue while the container remains on terminal.
How will this fee be collected?
According to Hapag-Lloyd:
“We expect the Port Authorities to bill Hapag-Lloyd and we now have an agreement with eModal to collect this charge on our behalf. It is expected that this payment arrangement through eModal will be available approximately on November 22 to November 24, 2021. Hapag-Lloyd will only hold containers pending payment AFTER eModal is live. You, as the merchant, will still be responsible for the chargeable period between November 15, 2021 and the go-live date and will be invoiced afterwards”.
Will containers held by Government Authorities, including Customs, be exempt from the fee?
All containers are expected to be subject to this fee regardless of their release status.
Will this fee be applicable to my cargo if I have a “No New Surcharge” clause in my service contract?
This is a port authority announced and levied charge, which, as a pass-through charge, will be for the account of the merchant and does not fall under coverage by a “No New Surcharge” clause. It will apply to all containers.
If I am unable to pick up my container due to a lack of chassis, will the surcharge be waived?
As this is a government mandated charge, we are unable to waive it due to lack of chassis.
If an appointment pickup time is not available, will this charge be assessed?
The charge will apply until the container out gates at the port. Terminal appointments must be checked with the terminal.
Will the fee apply to containers that are delayed loading onto the rail?
The Ports of Los Angeles and Long Beach have announced that they will assess the fee on containers that are delayed loading onto the rail. Hapag-Lloyd will not pass the charge onto customers for containers moving through to inland rail locations on a through bill of lading.
Will the charge apply to containers where the rail providers are metering the flow of freight out due to congestion at inland rail points?
The Ports of Los Angeles and Long Beach will assess the fee on containers not accepted by the rail due to congestion at inland rail points.
