PORTS CHARGE RENT FOR CONTAINERS.
Hmm… So what do you do if you know there will be a huge back up in the ports. I mean, everyone has seen the news. It’s been talked about for months “Do your Christmas Shopping early….”
Actually, let’s get Vice President Kamala Harris' exact quote: “If you want to have Christmas for your family, now is the time to start buying… The delay will be many, many months.” August 24, 2021 while in Singapore. (You Tube Video: https://www.youtube.com/watch?v=x3pSr3Nhrdc)
So, this has left a lot of companies with a lot of different and new issues. It has also left the Port of LA with a new issue as well. Some companies have “thought ahead…” They have purchased double and triple and even shipped things not needed until much later and even next year. Why? They are using the Port as a makeshift warehouse to store merchandise and cargo that is not needed yet.
Port officials are stressed and trying to encourage shippers that if the items are not needed now, you do not need to ship them and store them here. It’s making it difficult to move and function with all the backed-up containers.
Port officials have even tried meetings, plans, talks, and now it’s gone to fines! For every container sitting at the Port more than 9 days, the company will be charged $100.00 per container. The fees increase each day by $100.00. Port of Long Beach also approved similar fees.
Everyone is pointing fingers as to who is responsible. The companies are stating that when they get to Port, it’s no longer their responsibility for inland journey. They also blame the back up on empties that are just sitting there. Both Ports represent 40% of container imports in the United States.
The ones that hurt the most are the small businesses that have a lot to lose if they cannot participate in Christmas because their container is buried at the Ports.
All we can do is wait and see who will move first and help this situation. I think marine terminals and ports all need to create policies for empties and chassis returns. BUT, you don’t know something needs to be created until something like this occurs. With this challenge will come progress. I do believe that.
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