Here's an update for the Los Angeles / Long Beach Port Authority Policy - FAQ

As a follow-up to our CustomerNEWS dated October 29, 2021, this update will provide you with frequently asked questions concerning the Los Angeles / Long Beach Port Authority Policy update.  

For your reference, the official announcements from the Ports of Long Beach and Los Angeles can be found at the following links:

• Port of Long Beach - please click here
• Port of Los Angeles - please click here
  

Please refer to the following Frequently Asked Questions (FAQ) that are being updated on a regular basis to provide you with the latest information:

• When will the fee come into effect? *updated July 29, 2022*
  

The program went into effect on November 1, 2021, but penalties will not start to be assessed until August 26, 2022.  

Should progress be made before the assessment date of August 26,2022, it is up to the discretion of the Executive Directors of the Ports on whether to extend the assessment date further. The progress is measured by the Ports daily. 

• Will the fee apply to containers retroactively to November 1, 2021? *updated July 29, 2022*
  

The charge will apply to those containers on the terminal fromAugust 26, 2022, that are past the dwell times of 8 days for Import (truck Moves) and 5 days for Intermodal (Rail) Import.

For all existing overdue import containers (regardless of the number of days that they have been at the terminal), August 27 will count as the 9th day (or 6th day for intermodal) and will start at USD 100. Containers discharging after August 26, 2022 will be charged fully as per the structure mentioned below.

• How will the fee be assessed?

The fee will apply to 1) Import containers that remain on terminal 9 or more days after discharge, or 2) Import intermodal containers that remain on terminal 6 or more days after discharge.

• What is the fee structure?

Containers that remain on terminal based upon the above criteria will be invoiced at a rate of USD 100 per container on day one. Each additional day, the charge will increase by USD 100 per container until out-gated from the container terminal (for example, USD 100 for the first day and an additional USD 200 for the second day).

• Will it be applied on a calendar day or working day basis?

This charge will be applied on a calendar day basis, inclusive of Saturdays, Sundays, and holidays.

• Is there a maximum cap to this amount of this fee per container?

There is no maximum cap.  The application of this fee will continue while the container remains on terminal.  

• How will this fee be collected? *updated May 8, 2022*
  

We will be working on the most efficient process and will be updating this section with the information.

• Will containers held by Government Authorities, including Customs, be exempt from the fee?

All containers are expected to be subject to this fee regardless of their release status.

• Will this fee be applicable to my cargo if I have a "No New Surcharge" clause in my service contract?

This is a port authority announced and levied charge, which, as a pass-through charge, will be for the account of the merchant and does not fall under coverage by a "No New Surcharge" clause.  It will apply to all containers.  

• If I am unable to pick up my container due to a lack of chassis, will the surcharge be waived?

As this is a government mandated charge, we are unable to waive it due to lack of chassis.

• If an appointment pickup time is not available, will this charge be assessed?

The charge will apply until the container out gates at the port.  Terminal appointments must be checked with the terminal.

• Will the fee apply to containers that are delayed loading onto the rail? *updated November 18, 2021*

The Ports of Los Angeles and Long Beach have announced that they will assess the fee on containers that are delayed loading onto the rail. Hapag-Lloyd will not pass the charge onto customers for containers moving through to inland rail locations on a through bill of lading.

• Will the charge apply to containers where the rail providers are metering the flow of freight out due to congestion at inland rail points?

The Ports of Los Angeles and Long Beach will assess the fee on containers not accepted by the rail due to congestion at inland rail points.

• How much notice will Hapag-Lloyd provide prior to the implementation of the new fee?

Hapag-Lloyd has announced the new pass-through charge, with an effective date in line with the Port announcement.   

We will continue to keep you informed of any developments in this situation. If you should require additional information, our customer service teams at your location will be glad to guide you based on your individual situation.