U.S. logistics crisis fine... "If you stack up containers in the port, it's $100 each."

2021-10-27     Daniel

Port authorities in Los Angeles (LA) and Long Beach, California, which are suffering from the US logistics crisis, have decided to impose a backlog fine on shipping companies that have been accumulating containers for a long time at the pier.

He even took out a fine card when the containers filled with the port terminal disrupted the docking and unloading of other container ships.

The Port Authority of Los Angeles and the Port Authority of Long Beach have decided to impose container overdue fines from next month, the economic media Insider reported on the 26th (local time).

Insider reported that the Port of Los Angeles and the Port of Long Beach are starting to put pressure on shipping companies, and the purpose is to solve the bottleneck of the port by securing space for loading and unloading containers.

According to the Los Angeles/Long Beach Port Authority, truckloaded containers can be stored at the pier for nine days and containers scheduled for rail transport can be stored at the pier for three days, but a fine will be imposed if this period is exceeded.

The initial fine is $100 per container, after which it increases by $100 per day.

Mario Cordero, director of the Long Beach Port Authority, said: "There is not enough space at the port terminal."

However, logistics experts have questioned the effectiveness of the fine because land transport is also clogged with port bottlenecks, Insider said.

Global logistics company Seco pointed out that this could be an unrealistic measure if there are no trucks to unload cargo and not enough warehouses to store the cargo.

Korean logistics companies also predicted that this measure would only increase the burden on shippers, including distributors.

Kim Byung-sun, CEO of Felix Logistics, said, "Currently, there is a bottleneck in land transportation due to a shortage of truck drivers, and it is not possible to get container cargo out of the dock in time.