Toronto, November 4, 2021
The Port of Los Angeles & Long Beach Container Excess Dwell Fee that was introduced November 1, 2021, will penalize Ocean Carriers $100.00 US per container, increasing in $100.00 increments per day, for containers that sit too long at terminals.
This policy will begin counting storage days on November 1, with fines beginning November 15 and is scheduled to last 90 days. If there is significant progress made in clearing congestion, the Port Executive Director has the discretion to extend the November 15 assessment date. At present, this only applies to the Port of Los Angeles & Long Beach.
Ocean Carriers have already sent notices that they plan to pass these charges to importers. Penalties will be assessed after 9 days for containers being moved by truck and after 6 days for containers moving by rail. According to the compounding penalties schedule, the penalty will be $100 for the first day, $200 for the second day, $300 for the third day, and so on without a maximum penalty amount.
For example, if a container moving by truck remains at terminal for 15 days, the penalties would be $100 (Day 9) + $200 (Day 10) + $300 (Day 11) + $400 (Day 12) + $500 (Day 13) + $600 (Day 14) + $700.00 (Day 15) for a total of $2,800 US. Days are counted by calendar days and include weekends and holidays. These fees must be paid to the terminal before shipment will be released.
It is also the responsibility of the importer to return the empty container once offloaded. Due to these severe congestion issues, the empty return terminals are also operating at overcapacity, resulting in delays in accepting return containers. Truck carriers, awaiting empty return availability, are being forced to hold containers on their chassis and at their truck terminals. In such instances, additional daily fees are incurred for chassis detention and yard storage, which in turn are passed to importers.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.