Cargo jam at L.A. and Long Beach ports begins to ease as hefty fines loom

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Cargo jam at L.A. and Long Beach ports begins to ease as hefty fines loom
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Shipping companies and logistics officials say the logjam at the ports of Los Angeles and Long Beach is showing some signs of improving in response to recent measures.

at the ports of Long Beach and Los Angeles in a bid to unclog the supply chain before Christmas, 58 container ships were waiting offshore.

In response, officials at the ports voted in late October to impose a new fee on containers that sit around for more than six days if intended for rail transport or nine days if intended for trucks. Starting Nov. 15, the ocean carrier companies that brought those idling containers in will be charged $100 on the first day past deadline, $200 on the next, and so on — an escalating fine that could quickly grow into the tens of millions of dollars a day for the thousands of containers on the docks.

The ocean carriers have also responded with plans to send sweeper ships to remove the empty containers — approximately 30% of the total boxes piled up — that are clogging up the docks, Hacegaba said. “What’s moving a lot faster is the cargo that’s showing up here now, it’s just flaming out of here,” Schrap said. “The stuff that’s been dwelling is moving a little slower, but it is moving.”

With space opening up at the terminals, truckers say that dropping off empties is becoming a little smoother. Lisa Wan, director of operations at the trucking firm RoadEx America, said that her job has gotten easier in the last 10 days.

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