Officials for the Ports of Los Angeles and Long Beach announced on Monday that they will start fining certain shipping companies whose cargo shipping containers are left for too long at the ports to help relieve supply chain issues.
In a statement, arriving containers that are scheduled to be moved via trucks will only be allowed to stay for nine days before fines start to be handed out. Containers that are scheduled to be moved by railroad can only remain at the port for only three days before they start to receive fines.
After the amount of time allowed for containers to stay at the port, carriers will be fined $100 per container and it will be increased an extra $100 per day for the time they remain at the port after the time periods.
Mario Cordero, the executive director of the Port of Long Beach spoke about why fines will be enacted in a recent statement. He said:
“The terminals are running out of space, and this will make room for the containers sitting on those ships at anchor,”
We will see if this helps fix supply chain issues. Recently, President Biden said that the ports would be working for 24 hours to hopefully speed up the process.
40% of all shipping containers entering the United States come through the Ports of Los Angeles and Long Beach.