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It’s probably going to wipe out whatever’s left in terms of chassis,” predicted Roche.Īccording to Steve Hughes, representing the Motor Equipment & Manufacturing Association, “I’m concerned that this new fee is going to cause even more problems than it’s going to solve. “Chassis are already in short supply and this will artificially suck out the rest of the containers that may be sitting in there that didn’t need to be on a chassis and now they’re going to be parked somewhere. “As far as the ‘hyper-demurrage’ announced in Los Angeles/Long Beach, I think it will be catastrophic,” said Rich Roche, vice president of international transportation at Mohawk Global Logistics, during the NSAC meeting.
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It will be charged to carriers, which will then almost certainly pass the fee along to shippers, meaning it will be the equivalent of an escalating demurrage charge. 1, the ports of Los Angeles and Long Beach will charge $100 per container for boxes dwelling nine or more days that move by truck and those dwelling six days or more that move by rail. Members include heavy hitters like Amazon (NYSE: AMZN), Walmart (NYSE: WMT), Target (NYSE: TGT), Office Depot (NASDAQ: ODP) and Ikea.Ĭouncil members had a lot to say about the California port fees - none of it good.
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NSAC, created to advise the Federal Maritime Commission, is composed of 12 U.S. On Wednesday, two days after the ports of Los Angeles and Long Beach announced a surprise emergency fee for containers lingering too long at terminals, the National Shippers Advisory Council (NSAC) held its inaugural meeting. If you think port congestion is bad now, just wait for what comes next. The cure is worse than the disease, say critics of an emergency plan of the ports of Los Angeles and Long Beach backed by the Biden administration.