Port Congestion Surcharge

Multiple carriers have begun announcing the implementation of port congestion fees.  Many carriers filed this surcharge in their tariffs as protection against increased operating costs associated with extreme congestion at terminals.  With the ILWU contract still not settled and mounting congestion and delays not only in Los Angeles/Long Beach but also in the Pacific Northwest, carriers now intend to apply these fees.  The application structure, whether by tender date or discharge date, is still a hot button issue and remains unclear.  Fee amounts as announced are as high as $800/20’ and $1000/40’ for FCL shipments and $20/cbm for LCL cargo.

On top of the announced surcharge, several drayage companies in Los Angeles/Long Beach, with the backing of the Teamsters, are picketing the port complex to protest their working conditions and classification as independent drivers.  The ILWU has not at this point joined the picketing but there are mounting concerns that this will further increase congestion in the port.

Shapiro will continue to monitor the situation and will keep you informed of any changes.