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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Accumulation of Containers Still Problematic at West Coast Ports

07/07/2022

The threat of imposing a $100 per day demurrage fee on containers that remained in ports awaiting transport announced on October 24th 2021 reduced congestion during the first quarter of 2022 despite protest from shipping companies. According to recent data, on June 28th the Port of Long Beach counted 20,500 containers and the Port of Los Angeles had 70,290 containers. Although the combined quantity is lower than when the threat of a demurrage fee was mooted, there is clearly deterioration in the rate of removal from ports and especially by rail.

 

Gene Seroka, Executive Director of the Port of Los Angeles reported on June 14th that a number of containers awaiting rail transport have aged in excess of nine days.  He noted that if rail transport was restored to pre-COVID levels there would be no problem with aging containers and that cargoes would move "more fluidly through the port complex".

 

The question now is whether either threats or actual imposition of the demurrage fees as threatened would effect improvements to reduce congestion and expedite unloading and deliveries.


 
Copyright © 2022 Simon M. Shane