Port of Oakland is reducing its landlord free dwell time for containers from seven to four days before tariffs are applied.
From July 1, Oakland reduced the tariff-free time from seven days to four days, aiming to reduce congestion on its marine terminal, while it also considers raising penalties for containers that sit for too long.
We think the (demurrage) rates need to be higher to encourage cargo owners to move their cargo faster
said Danny Wan, executive director for the Port of Oakland.
The late fees are charged by both the shipping lines and the marine terminals when a container is not moved out of the port within the free days offered. “Our belief is that the rates are still low because customers are still using the terminals as storage facilities,” Mr. Wan added.
According to the CNBC Supply Chain Heat Map, the port is experiencing the longest dwelling times for import containers. In fact, the average dwell in Oakland terminal is now 9-12 days, when it used to be 3-4 days.
60% of the aging containers are designated as rail cargo. This needs improvement. Containers that move out by truck are doing well. Aggregate, long dwell numbers at the POLA are higher than we saw in February, but not close to last fall
Gene Seroka is the Executive Director of the Port of Los Angeles, said.
