58,900 Containers Are Now Paying A Rising $100 Penalty In LA, Long Beach

The penalties on 58,900 containers at the ports of Los Angeles and Long Beach are officially racking up charges. These containers were part of the 60,000 containers the ports alerted the ocean carriers last Monday to move or face a daily $100 penalty per container, increasing in $100 increments per day.

American Shipper reached out to both ports for updates on the removal of the “lingering” containers.

According to Port of Los Angeles Executive Director Gene Seroka, there are a total of 84,000 total imports on docks waiting to be transported, a total that is 3,000 higher than a week ago. Of those 84,000, a whopping 40,000 of those containers have been at the Port of LA for nine-plus days, which is considered lingering. Containers are considered long-dwelling if the boxes are waiting over nine days for truck, six days for rail.

“This is the wrong direction,” said Seroka.

The Port of Long Beach saw 10% of its 27,000 lingering containers move out since last Wednesday. The port has approximately 18,900 containers being charged penalties.

“This is a sign that the surcharge is having its intended effect, but clearly there is more work to do,” said Noel Hacegaba, COO of the Port of Long Beach.

“The ocean carriers are stepping up and coordinating with the shippers, terminals, railroads and motor carriers to look for the fastest way to push inbound containers out of the terminals.”

The 58,900 late containers at these ports represent a much-needed economic injection for the U.S. economy — a handsome $2,585,651,100 in trade, based on a per-import twenty-foot equivalent unit value of $43,899 (the average of containerized import TEUs at the Port of Los Angeles in 2020).- READ MORE