The ports of Los Angeles and Long Beach have postponed a backward shipping container charging plan, due to go into effect Monday, as advances in traffic management were made amid an ongoing supply chain crisis.
“The handling of import containers from our docks has improved significantly in the past few weeks,” said Gene Seroka, executive director of the Port of Los Angeles, in a statement. “I am grateful to the many hubs in the supply chain, from shipping lines, ship terminals, trucks and freight owners, for their intensified collaborative efforts.”
Officials said the ports have seen “a 26% decrease in aging cargo” since the fee was first announced on Oct.25, nine days on-site and six days in rail transport.
JAMIE DIMON SAYS SUPPLY CHAINS WILL NOT BE “NO PROBLEM NEXT YEAR”
Seroka added that the ports “will continue to closely monitor the data through November 22nd”. Officials say any fees imposed by the fines will be reinvested in efforts to “improve efficiency, accelerate freight speeds and remove the effects of traffic jams.”
The ports of Los Angeles and Long Beach were a key element in President Biden’s plan to deal with the supply chain crisis. A labor shortage has resulted in congestion in large ports, which has resulted in shipping delays and bottlenecks in key components.
In October, Biden said officials at the two ports had agreed to move to 24/7 operations to ease supply chain bottlenecks.
“We are encouraged by the progress our supply chain partners have made to help our terminals drop long-life import containers. It is clear that everyone is working together to speed up freight traffic and reduce the backlog of ships offshore as quickly as possible, ”said Mario Cordero, Executive Director of Port of Long Beach. “Deferring the consideration of the fee gives us more time while we focus on the results we need.”
CLICK HERE TO READ MORE FROM FOX BUSINESS
The Port of Los Angeles noted that the potential fines plan was developed in coordination with the Biden Harris Supply Chain Disruption Task Force, the U.S. Department of Transportation, the Port of Long Beach and several supply chain stakeholders.
