General

Recently, it has been reported that the Port of Los Angeles in the United States issued an announcement stating that in order to solve the congestion problem, it is ready to take new measures. The "container excess detention fee" for the Port of Los Angeles and Long Beach has been officially implemented on November 1st! The date originally planned to start the collection on November 15, 2021 is also approaching.

In extreme cases, a cabinet that has been stranded for one month will have to pay a sky-high fine of $46,500! The shipping company has announced that the fine will be passed on to the shipper! Recently, the risk of abandoning goods exported to the United States has increased sharply, so be careful of abandoning...

Nearly 60,000 containers face "overdue detention fees", and the risk of abandoning goods exported to the United States has increased sharply

According to the latest news, on November 8th, a total of 102 ships were waiting to berth outside the Port of Los Angeles and Long Beach, and 60 ships were already at berths, so there were a total of 162 ships. Despite the federal government’s attempts to intervene to clear the backlog of major gateway terminals in the United States, the number of ships continues to increase.

According to Gene Seroka, executive director of the Port of Los Angeles, through preliminary statistics from the port, about 58,900 containers may face fines. There are currently about 84,000 containers in the Port of Los Angeles, of which 40,000 have stayed in the port for more than 9 days; in the Port of Long Beach, 18,900 containers have stayed in the port for more than 9 days.

The port will start calculating the time of container stay from November 1st, and start charging calculation work from November 15th. Please note that the fine here is not 100 US dollars for each cabinet every day, but an increase of 100 US dollars every day, and a total of 1500 US dollars for 5 days of detention. In extreme cases, the cabinets detained for one month need to pay a sky-high fine of 46,500 US dollars. !

These two ports carry 40% of the cargo transportation in the United States, and are the most important ports for Chinese products to be exported to the United States. The risk of abandonment of goods exported to the United States is increasing sharply recently.

High fees will be passed on to shippers and freight forwarders

High fees will be passed on to shippers and freight forwarders

Who pays this money? The unfortunate part of this punishment is that the shipping company has always stated very publicly that these costs will be passed on to the shipper, who may pass it on to American consumers at a higher price.

Regarding the overdue detention fee, the MSC shipping company has already announced that they will not pay it, and it is expected that all the expenses will be passed on to the shipper.

The shipper certainly doesn’t want to deliver it, but the cargo is held in the hands of the shipping company. At that time, there will be a lot of disputes-after all, no one wants to pay this money.

Just imagine, your value is lower than the fine? Once a customer encounters such a bad situation, will he simply abandon the goods?

The Goldman Sachs research report pointed out that there are still US$24 billion of cargo remaining in the waters of the two major ports of Los Angeles and Long Beach waiting to enter the port. It is estimated that port congestion, cargo backlog and rising transportation costs will continue at least until the middle of next year. Judging from the current situation, the US port congestion problem may still be difficult to solve for a while.

I would like to remind again that freight forwarders who have plans to ship to the United States in the near future should pay attention to controlling the risk of abandonment. As well as the cargo backlog in the two major ports of Los Angeles and Long Beach, it is necessary to pay close attention to and contact the shipping company in time to take timely action! Forwarding well known~