THE Port of Los Angeles has again deferred plans to charge ocean carriers that fail to clear empty containers off the docks and is consulting with the logistics industry on alternatives, reports Bloomberg.
The proposed US$100 daily penalty, which would have levied February 1, may have 'unintended consequences,' because some of the empties sitting the longest are buried under others, costing time 'that our marine terminals simply don't have to waste right now,' said port executive director Gene Seroka.
US supply chains have strained under unprecedented demand, worker and chassis shortages and a shift to buying more material goods as Americans avoided travel and social outings over the course of the pandemic.
The terminals at Los Angeles received record amounts of imports in 2021 and despite efforts by the port and the Biden administration, long delays continue there and at neighbouring Long Beach, which combine to handle 40 per cent of the US's inbound containers.
Mr Seroka said the fee proposal was intended to get the industry talking and it had been successful in doing so.
Truckers, represented by the Harbour Trucking Association (HTA), have for months complained about restrictions on empty-container returns, saying these are among the top problems that need fixing to ease US supply chain bottlenecks.
Said HTA chief executive Matt Schrap: 'Empty containers need to be moved out, while not negatively impacting American exports and assisting the truck driving community so they could bring those empties back with a chassis and get the next round of imports.'
The HTA cited restrictions on empty container returns as contributing to the backlogs. Mr Schrap said trucks need a chassis to collect import-laden containers, but unless they bring an empty container to free up the chassis, they're unable to move the import.
While the number of empty containers on Los Angeles docks had fallen to about 72,000 from about 90,000 before the holiday break, getting under 70,000 had proved to be 'a very strong point of resistance,' Mr Seroka said.
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The proposed US$100 daily penalty, which would have levied February 1, may have 'unintended consequences,' because some of the empties sitting the longest are buried under others, costing time 'that our marine terminals simply don't have to waste right now,' said port executive director Gene Seroka.
US supply chains have strained under unprecedented demand, worker and chassis shortages and a shift to buying more material goods as Americans avoided travel and social outings over the course of the pandemic.
The terminals at Los Angeles received record amounts of imports in 2021 and despite efforts by the port and the Biden administration, long delays continue there and at neighbouring Long Beach, which combine to handle 40 per cent of the US's inbound containers.
Mr Seroka said the fee proposal was intended to get the industry talking and it had been successful in doing so.
Truckers, represented by the Harbour Trucking Association (HTA), have for months complained about restrictions on empty-container returns, saying these are among the top problems that need fixing to ease US supply chain bottlenecks.
Said HTA chief executive Matt Schrap: 'Empty containers need to be moved out, while not negatively impacting American exports and assisting the truck driving community so they could bring those empties back with a chassis and get the next round of imports.'
The HTA cited restrictions on empty container returns as contributing to the backlogs. Mr Schrap said trucks need a chassis to collect import-laden containers, but unless they bring an empty container to free up the chassis, they're unable to move the import.
While the number of empty containers on Los Angeles docks had fallen to about 72,000 from about 90,000 before the holiday break, getting under 70,000 had proved to be 'a very strong point of resistance,' Mr Seroka said.
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