Emergency fees on cargo stuck on the terminal at the ports of LA and LB

[banjo]

Hi All, As you may be aware, authorities in the U.S. proposed in the last week of October to introduce new emergency fees on cargo stuck on the terminal at the ports of Los Angeles and Long Beach, as part of Federal efforts to alleviate the severe congestion in the area. The ports of Los Angeles and Long Beach are undergoing severe stress and congestion in all terminals. There are many updates to fees that are effective immediately listed out below. ARCA continues to monitor communications from the Biden-Harris Supply Chain Disruptions Task Force, as well as any announcements from the two ports. We will continue to do all that we can to provide solutions to our customers importing cargo to the U.S. in respect of the significant challenges facing global supply chains and the specific stress in the Los Angeles/Long Beach area. Please review the below, pass on to your teams, vendors, clients and all who are impacted by these changes. Should you have any questions, please feel free to contact us info@arcaworld.com. We appreciate your continued support, especially during these unprecedented times. Emergency Dwell Fee: The Biden Administration has announced that the ports of Los Angeles and Long beach will begin assessing "Emergency Fee” on all long dwelling import containers in the marine terminals at Los Angeles and Long Beach effective 11/22 to expedite cargo flow and help ease congestion at the port of Los Angeles and Long Beach. Key details below - Local delivery containers (truck) dwelling on terminal 9+ days Intermodal containers (rail) dwelling on terminal 6+ days The fee increases in $100 increments per container per day until the container leaves the terminal. The fee is currently scheduled to be collected no sooner than November 22, 2021. On that day, the Port of Long Beach will be counting all inbound containers that fall into the two categories above and charge a $100 fee per day that compounds daily in $100 increments (i.e. $100 on day 1 + $200 on day 2 + $300 on day 3…). This charge will be applied based on Calendar days This charge will be applied to all US Custom exam move as well. Non-Returnable Empties: We have had serious issues returning empties. Many terminals and steamship lines are not allowing empties to be returned due to a lack of space on the yard. It results in yard space shortage, chassis shortage, operation delay. It is completely out of our control and impacting all operations dramatically. Furthermore, ocean carriers charge per diem despite the terminal not allowing empties to be in-gated. We are unable to dispute all the per diem invoices and carriers are not waiving them. Any per diem will be billed to customers. Chassis Shortage: The shortage of chassis has become the most critical issue due to empty restriction. We are paying huge chassis rental fee to rental companies due to empty return restriction. There is a lot of effort and many hours put in just to secure 1 chassis. 20’ chassis’ are rare at this time and we cannot guarantee chassis’ availability. Effective 12/1, chassis daily fee will be increased to $55/day Congestion Fee: The terminals at POLA & POLB have been seriously congested due to the increased volume. Terminal congestion has reached a critical crisis point. Our truckers have experienced with long waiting times at terminals, lack of chassis, no appointment available, and empty return restrictions. All carrier are charging congestion fees for any container in/out of both Los Angeles and Long Beach. Effective 12/1, congestion fee for POLA/POLB will be $200. Pier Pass: Marine terminal operators in Los Angeles and Long Beach want to double the current fee for daytime trucking moves to incentivize more nighttime moves and help relieve crippling congestion at the ports. Unfortunately, terminal appointments are still needed and we are at the mercy of the availability. We cannot control whether we get a morning or evening appointment. From December 1, 2021, through January 31, 2022, the TMF will be $78.23 per TEU (twenty-foot equivalent unit) or $156.46 for all other sizes of container for non-exempt international container moves through the terminals at the ports of Los Angeles and Long Beach between the hours of 7:00 a.m. and 5:59 p.m. Monday through Friday.

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