Los Angeles, Long Beach ports to fine shipping companies over backlog

[Throck]

I thought part of the problem was a shortage of drivers and trucks to move containers out of the port? Fines are an incentive but how?



https://thehill.com/policy/transportation/shipping-and-cargo/578479-los-angeles-long-beach-ports-to-fine-shipping?amp

Officials for the ports of Los Angeles and Long Beach said on Monday that they will begin fining shipping companies whose cargo containers stay in marine terminals for too long as they work to reduce congestion in their ports.

Beginning on Nov. 1, the ports will charge containers that fall into two categories: containers scheduled to move by truck and containers moving by rail.

Ocean carriers will be charged for every container scheduled to move by truck that has been dwelling in the port for longer than nine days.

For containers meant to be moved by rail, carriers will be charged after they have been in the port for three days. Ocean carriers will be charged $100 per container, with the fines increasing in $100 increments per day per container.

[jimfields33]

1. They will sue

I can’t see how they can be fined when it’s not their fault. I guess they could do it unsafely.

[hurple]

2. Oh yeah...

This will help clear the backlogs.

Rather than just try to punish them and use the situation to wring a few bucks out of them, why not do something that could actually *help*?

[Elliot Waves]

3. More than likely fines will be passed along to consumers

Excrement always rolls downhill.

[Hortensis]

4. In normal times, containers remain under 2 days for train, 4 for local transport.

Much longer now, especially if just letting them sit is the lowest cost, sometimes effectively no-cost way of dealing with the situation -- as opposed to other possible actions, including increasing pay to draw drivers back into the field.

These fines don't begin until after containers have been idling for 9 days or 3 days depending and reportedly apply to about 40% of the total cargo that arrives.

In any case, it is the shipping companies' responsibility, under contracts at both ends, to move them out. This is one of a few steps being taken to ease the congestion keeping those ships offshore, such as paying to keep the ports working 24/7.

[Throck]

5. Unfortunately we are not living in normal times.

[Hortensis]

6. :) That's for sure. Although I imagine in all times ports

have to prod some shippers to get their containers out, just not nearly as many. And, of course, this is a temporary clusterfuck and those involved will work themselves out.

As part of our part, I've already told our grandchildren they're getting cash this Christmas. They have so much stuff as it is that their parents have to keep lists while they're happily shredding wrappings remind/tell them who to thank for what.

[EndlessWire]

7. I don't really know

all that much about shipping, other than wishing Donald would get on a yacht in Florida and sail away. But, doesn't it sound like a mistake? This is coming when we are starting to hear about driver shortages and bottlenecks and supply line problems. How is fining them going to help? My guess is, they will stop trying to land their cargoes without a trucking guarantee. How are they going to get that? Are they going to hold offshore, waiting? Time to restock the pantry...

[Throck]

8. Domestic stuff seems to be okay.

I see spot shortages. Stuff missing for a week then back. Although I do see a tweak in prices and my $1.99 chicken breast seem to be a thing of the past. Ah hell, grew up on beans in rice and it got me through college.