New regulations at the Ports of Los Angeles and Long Beach: Truck pickup fees doubled!

According to foreign media reports, the West Coast MTO Agreement (WCMTOA) announced that the "Traffic Mitigation Fee" (TMF) at the Ports of Los Angeles and Long Beach will be temporarily adjusted.

It is understood that this adjustment was made at the request of port representatives of the Biden -Harris Administration Supply Chain Working Group and the executive directors of the Ports of Los Angeles and Long Beach. It is to encourage truck drivers to pick up/return containers during off-peak hours and increase the use of port night opening hours to ensure the supply of holiday goods for Christmas and New Year. This temporary adjustment still needs to be approved by the Federal Maritime Commission (FMC).

The specific charging requirements are:

Charging time: December 1, 2021 to January 31, 2022, Monday to Friday 7:00 am-6:00 pm.

Subject to the fee: “Non-exempt containers” shipped through the ports of Los Angeles and Long Beach .

Charge standard: 20-foot container, charged at USD 78.23/container, other-sized container, charged at USD 156.46/container.

Previously, TMF was charged at $34.21 per 20-foot container and $68.42 per container for other sizes. This means that the increase in TMF has more than doubled. In addition, empty containers, domestic and transshipment cargo, and containers shipped during off-peak hours from 6:00 p.m. to 6:59 a.m. the next day from Monday to Friday are exempt from TMF. TMF is exempted 24 hours a day during weekends and holidays.

Although the charges are levied on truck drivers and logistics companies, the increased costs of the supply chain will eventually be transferred to sellers and consumers. Some people also speculate whether this will result in no one picking up the containers during the day, and drivers picking up the containers at night, which will affect the delivery time.

In fact, in order to alleviate the problem of port congestion, the ports of Los Angeles and Long Beach have tried every possible means. First, they announced the implementation of the 007 work system, and soon began to charge detention fees for containers (the latest news is that the implementation has been suspended). In addition, they recently announced an increase in TMF, but the final effect seems limited.

According to foreign media reports, logistics companies and truck drivers in the United States complained that the real reason for port congestion is the chaotic and inefficient port management. Truck drivers have to wait at least several hours outside the port before receiving containers. Due to the insufficient number of containers released by the port, some logistics companies have to lay off some truck drivers.

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