Congestion Plaguing Ports of Los Angeles and Long Beach
For some time the Ports of Los Angeles and Long Beach have been facing an increasing amount of slow moving freight through their terminals. The causes for the congestion come under a number of headings.
Record volumes have been coming through the ports, which have compelled some shipowners to change scheduled terminal berths depending on which of the two is less congested. Even with the possibility of altering the schedule, the number of ships and their cargo coming through will still cause delays.
Weather has also been a factor in the surge of the backlog. If the weather causes delays and missed berthing windows, it begins to have a cumulative effect.
In an effort to keep the level of service high, Hapag-Lloyd has announced that due to the continuing congestion they will be applying a Congestion Surcharge (OCS/PCS) for all container types that utilize truck movement via the ports of Los Angeles and Long Beach.
The surcharge will go into effect on December 12, 2020 and remain in place until further notice. The amount of the new charge will be USD 180 per container.
The fee includes career haulage (door by truck) directly to and /or from the ports of LA/LB as well as carrier’s and merchant’s haulage that require truck drayage between LA/LB rail yards and truck depots and port terminals.
IFT is keeping on top of the situation and will keep our customers updated as developments occur. If you have any questions regarding the new information, please contact your IFT representative.