Container Excess Dwell Fees
Due to Port Congestion
Ports of Long Beach & Los Angeles Implement Dwell Fees, November 15th, 2021.
As heavy congestion at major ports worldwide builds, major disruptions to the supply chain continue to worsen. As a result, “Container Excess Dwell Fees” are being implemented to help reduce this congestion and encourage movement of freight inland. The Ports of Los Angeles and Long Beach have implemented these fees for long time dwelling import containers being moved inland by truck or rail.
Are Dwell Fees Impacting you ?
Dwell Fee Implementation Based on Inland Transport Method:
Truck
For freight designated for movement by truck that remain at the port terminal nine (9) or more days after discharge, a dwell fee will be implemented. Please note that the 9th day will be the first charge day.
Rail
For cargoes designated for movement by rail that remain on port six (6) or more days after discharge. Please note that the 6th day will be the first charge day.
The Fee
Starting on the applicable day, the fee will increase in $100 increments per container per day until the container leaves the port terminal. For example, for truck bound freight, the fee will be $100 per container on Day 9, $200 per container on Day 10, $300 per container on Day 11 and so forth.
*The fee is compounded each day (i.e. total fees on Day 9 is $100, total fees on Day 10 is $300, total fees on Day 11 is $600
*The dwelling days will be counted on a calendar day basis, including Saturdays, Sundays, and holidays.
Decision to Implement Dwell Fees.
The ports of Los Angeles & Long Beach have worked alongside President Biden’s Supply Chain Disruption Task Force to try and resolve this issue.
The parties came to the decision to re-invest any collected fees from dwelling cargo into various programs. These programs will be designed to promote efficiency in the supply chain, encourage the movement of freight, and address other congestion impacts. None of the collected dwell fees will be for profitable gain.