Posted on 10/30/2021 6:21:50 PM PDT by SeekAndFind
Halloween is going to be an extra scary day for the logistics world. A total of 60,000 containers have been marked as beyond the dwell time and need to be moved out of the ports of Los Angeles and Long Beach by the carriers or the penalties will start racking up. A total of 33,000 containers need to be rolled out of the Port of Los Angeles and 27,000 loaded containers for the Port of Long Beach — a whopping $2,633,940,000 value in trade.
Carriers were put on notice this week when the ports announced that, starting next Monday, a daily surcharge of $100 per container will be levied. Did this light a fire and a surge of containers being moved? No.
The pace of trade moving out of the ports could be characterized as more of a pregnant pause than a surge. Live webcams of the Port of Los Angeles terminals show more images of empty lanes than robust activity.
Turn times at both terminals tracked by the Harbor Trucking Association and GeoStamp also paint the snail pace of trade both before and after the announcement.
“We are having an emergency harbor meeting Friday morning to vote on this,” explained Port of Los Angeles Executive Director Gene Seroka. “I need to see progress on the movement of loaded containers. We need to show America we are doing whatever we can to get trade moving.”
Noel Hacegaba, COO of the Port of Long Beach, emphasized this container push would be significant in alleviating the congestion plaguing productivity.
“This is roughly 40% of all containers sitting on the terminals today,” he said. “Pulling all of these containers by Sunday will take an unprecedented coordinated effort but it must be done.”
Importers have told American Shipper they are afraid they will be on the hook for the fees. Some have already received letters notifying them of the additional charges.
“The carriers have always passed on fees and surcharges,” said one importer who asked for anonymity out of fear of retaliation. “Why would the Biden administration, which is behind this penalty, think the carriers would not pass it over? The Federal Maritime Commission is already looking into the excessive demurrage costs we are paying! Carriers are making record profits.”
Maersk sent a letter to customers on Wednesday detailing the penalties.
When asked if the penalties would be passed over to customers, Maersk responded it was a work in progress since it has clients that have clauses in their contracts that stipulate no new additional charges.
“This penalty was not intended to be a passed-on cost,” explained Mario Cordero, Port of Long Beach executive director, at a port update press conference. Hacegaba added, “We are using every tool at our disposal to move containers.”
The National Retail Federation and the American Apparel and Footwear Association tell American Shipper if these charges are passed on, it will only add to the mounting inflationary logistic charges importers have been paying.
Hacegaba stressed, “We need the entire supply chain to step up.”
Who knows what the truth is. I saw an article where a guy toured the coast in a boat for three hours and also interviewed people and said that the crane operators were working like snails. Three hours to move one container and that not all the cranes were even operating.
This is a container chassis problem. The trucks can’t move the containers out of the port because there aren’t enough container chassis available in LA/LB to move them.
What is stopping truckers from picking up freight in Long Beach?
“I still don’t understand quite what is going on.
What is stopping truckers from picking up freight in Long Beach?”
Longshore are sandbagging offload of the vessels. Most folks around here are aware of the Longshore Union’s intense Communist background. If the containers aren’t off the ships, the truckers don’t have access to them. As well understand the Union runs the dock operations as well.
Theft, lack of support infrastructure, and a host of other reasons leaves the option of Mexico a last resort. It has been done in the past, but the increase in the amount of containers since that time is incredible. The problems we had back then would be 100 fold.
That’s one I haven’t heard. What happened to the chassis? Where are they?
But the reports have said the yards are full of offloaded shipping containers, and they have started using empty lots.
So, they are going to rush to move 60K containers to some parking lot in LA where they will be twice as hard to sort out and get moving. Well done. Add another month to the delays.
The beatings will continue until morale improves…
There aren’t enough trucking companies in California to haul them! California ran them all out of business!
It’s like California set a building on fire and is now going to begin fining everyone until it’s put out.
“But the reports have said the yards are full of offloaded shipping containers, and they have started using empty lots.”
Lots of dirty tricks such as truckers intending to pick up CY must be almost new. Container truckers usually buy anything that will run, and run it until it doesn’t. They aren’t allowed by California to pick up cargo in the harbor, and remember the terminals are all run by the Communist Unions. NOT just the T-Ops. The Commies are everywhere believe it, or not.
What are they expecting to happen with the containers in a state which has banned trucks?
Mule trains?
Hordes of illegals hefting the containers on their shoulders and scurrying away?
What?
Tell CA no one is paying sh!t for the mess you caused. Keep the containers! Good luck unloading the other ships. Then find a few thousand polluting semis and park them at the entrance of both harbors, abandon them and leave them running
“Carriers that don’t have trucks less than three years old which is all CA will allow.”
Not true.
The truck can be of any age, but the engine must meet standards adopted 10 years ago.
10 years.
That’s at least a million miles for most trucks.
What could go wrong. Thank you biden.
And Newsom another thank you
They don’t have the same rules either.
The following link will help many understand what the ‘H’ is going on by putting the information of how it began to what is happening today.
https://www.google.com/search?client=firefox-b-1-d&q=harry+bridges
If it were me.
I would just leave. Do what you want with it.
I can’t play stupid, it does not sit well with me.
Let Diaper Joe and Obama offload it.
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