California ports to fine carriers over congestion

California ports to fine carriers over congestion

California ports to fine carriers over congestion

Officials have said they will start fining shipping companies whose cargo containers linger for too long at marine terminals, going into effect Nov. 1, according to USA Today.

In an effort to ease congestion at the nation's busiest port complex, the twin ports of Los Angeles and Long Beach said in a statement that arriving containers scheduled to be moved by trucks will be allowed to stay for nine days before fines start accruing.

Containers set to move by rail can stay at the ports for three days, after that ocean carriers will be charged US$100 per container, increasing in $100 increments per container per day.

"The terminals are running out of space and this will make room for the containers sitting on those ships at anchor," Port of Long Beach Executive Director Mario Cordero said.

It's the latest step aimed at relieving the congestion caused by the logjam of cargo ships that has interrupted the global supply chain.

The backlog prompted the Biden administration to allow the port complex to operate 24 hours a day to try and unload to ship to consumers.

About 40 percent of all shipping containers entering the U.S. come through the Los Angeles and Long Beach ports.

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