Maersk informed that the likelihood of the US implementing the “Container Dwell Fee” has risen significantly this month.
n October 25, 2021, the Biden Administration announced that, effective November 1, 2021, the ports of Los Angeles and Long Beach would begin charging a “Container Dwell Fee” on all long-dwelling cargo as terminal congestion had reached historic levels.
Since that time, the ports have delayed consideration of the fee week after week. However, given that congestion continues to impact vessel and landside supply chain operations, the likelihood of the Administration implementing the fee has risen significantly this month.
According to Maersk, since last year’s announcement, supply chains have endured even more disruptions, including the COVID-19 pandemic, historic levels of goods coming into the U.S., geopolitical conflicts, and challenges in global markets.
In addition, the ILWU and the PMA have initiated labor negotiations for a contract that expires July 1st in advance of shipping peak season. In its efforts to counter these supply chain stressors, the Biden Administration has tasked its “Supply Chain Disruptions Task Force” and the U.S. Dept. of Transportation to enact strategies they believe will mitigate disruption.
The general program parameters are as follows:
- The fee will be applied to all containers that remain at the terminal for 9 days or more and rail containers for 6 days or more
- The cost is $100 per container on the first day past the set dwelling limit for terminal or rail and will increase by $100 increments for each day that follows (i.e., $200 for day 2, $300 for day 3 and so on)
- The relevant Port Authority will be charging the fee and submitting the bill to Ocean Carriers to act as collection agents to charge and invoice those with a cargo interest in the laden import containers
- Maersk will collect any amounts due from cargo owners (or their designated demurrage payer) before releasing the cargo