On Oct. 28th Alba sent the following message on the Container Excess Dwell Fee imposed by the San Pedro Bay Ports to the ocean carriers here.
This charge was put in place to take effect Nov 1 2021 The charges , however, will not be assessed until Nov. 22nd. This two week grace period has been given to allow for terminals to clear their docks. It will be up to the Executive Directors of the respective ports to extend that effective fee assessment date further should material progress be made.
Containers that are being moved by truck have a 9 day grace period before the fees will be assessed, whereas those moved by rail will only have 6 days before fees begin piling up. The 9th and 6th days respectively will be the first day of charges applied.
Alba Wheels Up has instituted the policy as of Nov 22nd that in the event an ocean carrier invoice Alba this fee, we will pass this fee to Beneficial Cargo Owner
Local Import Loaded Container
Days on Terminal | Daily Charge ($) | Cumulative Charges ($) |
9 | $100 | $100 |
10 | $200 | $300 |
11 | $300 | $600 |
12 | $400 | $1,000 |
13 | $500 | $1,500 |
More than 13 | Incremental $100 increase per day with no limit | $$$ |
Intermodal Import Loaded Container
Days on Terminal | Daily Charge ($) | Cumulative Charges ($) |
6 | $100 | $100 |
7 | $200 | $300 |
8 | $300 | $600 |
9 | $400 | $1,000 |
10 | $500 | $1,500 |
More than 10 | Incremental $100 increase per day with no limit | $$$ |
The dwell days will be applied to the containers on the terminal that are dwelling for more than 8 days effective November 15th are deemed to have been there for 9 days for the purpose of fee charges regardless of how long the container has actually been dwelling. This means starting the 15th the charges will start being applied, and not before. The charges cannot be applied retroactively according to the verbiage in Los Angeles Tariff No. 4 circular as per the Port Authority. This charge will only be applicable to all waterfront terminal dwelling import containers, not any non-waterfront rail yard containers.
The relevant Port Authority will be charging the fee to the ocean carrier to act as a collection agent to charge those with a cargo interest in the laden import containers. As the Port Authority of Los Angeles Tariff No. 4 states: “This Excessive Dwell Fee shall be billed directly to the Ocean Carrier under whose bill of lading a container subject to the fee was discharged…”
Should your container exceed the defined dwell times, the carriers have stated they will pass this cost onto all customers as the owner of the cargo that is dwelling on the terminal resulting in the fees from the ports. The beneficial cargo owner will be issued an invoice for the accumulated owed fee and the surcharge will be applied based on the calendar days, inclusive of Saturdays, Sundays, and holidays. In the event that Alba is issued an invoices under these circumstances we will be invoicing these charges to the customer
There will be no maximum cap on the fee, as there is no cap presented by the Port Authority, and the charge will continue for the duration the container is on the terminal or rail. Even containers held for customs exams will be subject to the fee irrespective of release status.
Should the container be unable to be retrieved due to lack of chassis, fee will not be waived.
Customers, however, may not be charged a fee should the container not be made available by the terminal for pickup. Customers should also not be held responsible for the fee should no appointment time be available for the prescribed 4 free days from container availability, so long as the container was not delayed due to a freight, OBL, or customs hold (exam or any government inspection). This however is subject to specific carrier and terminal policy
We are still actively working with both regulators and the ports of Los Angeles and Long Beach alike to gain a full understanding of all the issues at hand and as more information becomes available, trust we will do our utmost best to keep you informed.