The wolf is coming! Will the Port of Los Angeles charge demurrage fees for empty containers?

As expected, the Port of Los Angeles and the Port of Long Beach have once again announced that they will postpone the implementation of container detention fees. Two months have passed since the Port of Los Angeles and the Port of Long Beach announced the collection of container detention fees in October, and the detention fee policy has never been actually implemented.

It is understood that since the announcement of the detention fee, as of December 20, the number of containers eligible for charging at the Ports of Los Angeles and Long Beach has dropped by 46%, and the problem of container detention at the ports is gradually easing.

But while the number of stranded containers is decreasing, the problem of stranded empty containers is gradually emerging.

Gene Seroka, executive director of the Port of Los Angeles , said last week that nearly 71,000 containers have been piled up in the Port of Los Angeles . Among them, 60% of the empty containers have stayed at the Los Angeles terminal for 9 days or more. As of the end of November, the number of empty containers in the terminal was 11% higher than the same period last year . At the same time, as imported containers continue to enter the terminal, the number of empty containers in the Port of Los Angeles will continue to increase.

“We implore the liner shipping companies to bring in more and larger sweeper vessels to clear these empty containers," he said. "We will look at alternatives, including charging the liner companies for the excessive stay of empty containers at our marine terminals."

Is the Port of Los Angeles going to play the "crying wolf" game again ?

Some agencies estimate that, except for the Lunar New Year holiday, the pressure on ports is not expected to ease for several months. Seroka said that as retailers import a large amount of goods to replenish their inventory, US imports will remain high until February , and imports will increase again after the holiday .

A forecast released by the National Retail Federation shows that imports this month will increase 4.6% year-on-year , and will increase 9% and 7.3% in January and February next year , respectively.

It is understood that due to port congestion, companies such as Amazon that choose to rent ships sometimes choose to avoid the congested ports of Los Angeles and Long Beach and look for suitable ports. At the same time, some containers have also turned to ports on the East Coast. U.S. import data for November showed that container imports at West Coast ports fell 7.5% compared with the same period last year. Imports at East Coast and Gulf of Mexico ports increased 9.9% year-on-year.

Los Angeles

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Port of Long Beach