Ports of Los Angeles, Long Beach looking at new carrier incentive to clear empties

Date: Thursday, January 27, 2022
Source: Splash 247

Along with John Porcari, the Biden administration’s port envoy, the ports of Los Angeles and Long Beach are exploring a new strategy to move empty containers – which comprised 47% of containers at the Port of Long Beach on January 25 – off their terminals. A project working group includes carriers and terminal operators.

The “over match plan” would provide an unspecified incentive to carriers to more than match the containers they discharge at the ports with containers for export, including empty containers. The plan will make use of a formula designed to ensure that laden export containers are not deprioritised to make space for empty containers.

Gene Seroka, executive director of the Port of LA, said at a Los Angeles Board of Harbor Commissioners meeting on January 13 that further stakeholder input is being sought.

The ports’ container dwell fee, first announced on October 25 and yet to be implemented, was again postponed recently, and will be considered next on January 28. Since the program was announced, the two ports have seen a combined decline of 62% in aging cargo on the docks.

[Read from the original source.]