PSW Emergency Fee Surcharge
May 24, 2022 - Update 8
Potential Container Dwell Fee Surcharge for Pacific Southwest Ports
On Oct. 25, 2021, the Biden Administration announced that, effective Nov. 1, 2021, the ports of Los Angeles and Long Beach would begin charging a “Container Dwell Fee” on all long-dwelling cargo as terminal congestion had reached historic levels. Since that time, the ports have delayed consideration of the fee week after week. However, given that congestion continues to impact vessel and landside supply chain operations, the likelihood of the Administration implementing the fee has risen significantly this month.
Since last year’s announcement, supply chains have endured even more disruptions, including the COVID-19 pandemic, historic levels of goods coming into the U.S., geopolitical conflicts, and challenges in global markets. In addition, the ILWU and the PMA have initiated labor negotiations for a contract that expires July 1st in advance of shipping peak season. In its efforts to counter these supply chain stressors, the Biden Administration has tasked its “Supply Chain Disruptions Task Force” and the U.S. Dept. of Transportation to enact strategies they believe will mitigate disruption.
While a detailed FAQ document is available on Maersk.com, general program parameters are as follows:
- The fee will be applied to all containers that remain at the terminal for 9 days or more and rail containers for 6 days or more
- The cost is $100 per container on the first day past the set dwelling limit for terminal or rail and will increase by $100 increments for each day that follows (i.e., $200 for day 2, $300 for day 3 and so on)
- The relevant Port Authority will be charging the fee and submitting the bill to Ocean Carriers to act as collection agents to charge and invoice those with a cargo interest in the laden import containers
- Maersk will collect any amounts due from cargo owners (or their designated demurrage payer) before releasing the cargo
Rest assured, Maersk continues to explore different options for moving longstanding containers to help customers mitigate exposure to this new government fee. On May 3rd, we published our Customer Advisory, “Off-dock Drayage Program for Long-Dwelling Containers Begins May 16 in Los Angeles and Newark.” The advisory stated that Maersk will begin transferring longstanding import containers in its Los Angeles and Newark gateways to off-dock yards as of May 16th. While we continue to make progress, similar dray-off programs are being considered in other locations such as Seattle, Houston, Savannah, and Chicago.
Customers with cargo in the Los Angeles (APMT) and Long Beach (TTI) terminals are encouraged to take advantage of our “Saturday Gate Incentive,” which offers a $100 per container credit for import pickups. We have extended this credit program through June 18th.
We understand the fee implementation could put all parties involved in a difficult situation as truck, chassis, and warehouse capacity are all extremely stretched. We ask for your continued support in prioritizing the pickup of ageing cargo as we work together to restore fluidity of the marine terminals and inland hubs for a more reliable supply chain. Please reach out to your Customer Experience representative should you have any questions.
FAQ's
Local Import Loaded Container
| Days on Terminal | Daily charge ($) | Cumulative charge ($) |
|---|---|---|
|
Days on Terminal
9
|
Daily charge ($)
$100
|
Cumulative charge ($)
$100
|
|
Days on Terminal
10
|
Daily charge ($)
$200
|
Cumulative charge ($)
$300
|
|
Days on Terminal
11
|
Daily charge ($)
$300
|
Cumulative charge ($)
$600
|
|
Days on Terminal
12
|
Daily charge ($)
$400
|
Cumulative charge ($)
$1000
|
|
Days on Terminal
13
|
Daily charge ($)
$500
|
Cumulative charge ($)
$1500
|
|
Days on Terminal
More than 13
|
Daily charge ($)
Incremental $100 increase per day with no limit
|
Cumulative charge ($)
|
Intermodel Import Loaded Container
| Days on Terminal | Daily Charge($) | Cumulative Charge($) |
|---|---|---|
|
Days on Terminal
6
|
Daily Charge($)
$100
|
Cumulative Charge($)
$100
|
|
Days on Terminal
7
|
Daily Charge($)
$200
|
Cumulative Charge($)
$300
|
|
Days on Terminal
8
|
Daily Charge($)
$300
|
Cumulative Charge($)
$600
|
|
Days on Terminal
9
|
Daily Charge($)
$400
|
Cumulative Charge($)
$1000
|
|
Days on Terminal
10
|
Daily Charge($)
$500
|
Cumulative Charge($)
$1500
|
|
Days on Terminal
More than 10
|
Daily Charge($)
Incremental $100 increase per day with no limit
|
Cumulative Charge($)
|
Containers will be placed on hold subject to payment of the excess dwell fee. Container demurrage holds will continue to be applied as well per current standard practice.
Note: We are still actively working with both regulators and the ports of Los Angeles and Long Beach alike to gain a full understanding of all the issues at hand and as more information becomes available, trust we will do our utmost to keep you informed.
Previous updates
Jan 07, 2022 - Update 7
The Port Los Angeles and Port of Long Beach have announced further delay of their consideration of the “container dwell fee” until January 10th.
The ports reported on their respective websites that since the program was announced on Oct. 25 the twin ports have seen a combined decline of 41 percent in aging cargo on the docks.
The Port Authorities initially announced that the fee would commence on Nov. 15. At the time, the ports stipulated that the fee would only be introduced if no material progress was being made in the clearing of long dwelling cargo at the various port terminals. Fortunately, continued improvements have resulted in the weekly postponement of the fee.
Thank you for your continued support in prioritizing the pickup of ageing cargo in the Los Angeles and Long Beach area as we work to decongest the marine terminals.
Dec 30, 2021 - Update 6
The Port Los Angeles and Port of Long Beach have announced further delay of their consideration of the “container dwell fee” until Jan. 3.
The ports reported on their respective websites that since the program was announced on Oct. 25 the twin ports have seen a combined decline of 41 percent in aging cargo on the docks.
The Port Authorities initially announced that the fee would commence on Nov. 15. At the time, the ports stipulated that the fee would only be introduced if no material progress was being made in the clearing of long dwelling cargo at the various port terminals. Fortunately, continued improvements have resulted in the weekly postponement of the fee.
Thank you for your continued support in prioritizing the pickup of ageing cargo in the Los Angeles and Long Beach area as we work to decongest the marine terminals.
Dec 14, 2021 - Update 5
The Port Authority of Los Angeles and Long Beach has announced a further delay of the introduction of the new container excess dwell fee until December 20th.
The Port Authority initially announced that the fee would commence on November 15th. At the time, the Port Authority stipulated that the fee would only be introduced if no material progress was being made in the clearing of long dwelling cargo at the various port terminals. Fortunately, continued improvements have resulted in the weekly postponement of the fee.
It is imperative that we retain positive momentum to reduce the potential introduction of fees. Thank you for your continued support in prioritizing the pickup of ageing cargo in Los Angeles and Long Beach area as we work to decongest the marine terminals.
Nov 16, 2021 - Update 4
As previously communicated, the Port Authorities of Los Angeles and Long Beach had effective the 25th of October provided it’s notice of intention to start billing a “Container Excess Dwell Fee” commencing the 15th of November. The fee would go into effect should the ports not see a material improvement in the clearance of long dwelling containers at the terminals.
This advisory serves as a notification to inform customers of the decision by the Port Authority to delay the introduction of the fee by a week until the 22nd of November. Port of Los Angeles Executive Director Gene Seroka was quoted in saying “There’s been significant improvement in clearing import containers from our docks in recent weeks”. In fact, since the fee was announced on the 25th of October, they have seen a decline of 26% on the combined ageing of cargo on their docks.
Maersk continues to explore different options in moving longstanding containers to help customers mitigate exposure to this new government fee. This includes but is not limited to the railing of long dwelling cargo to inland points in cooperation with our railroad partners. We ask for your continued support in prioritizing the pickup of ageing cargo in Long Angeles and Long Beach as we work to decongest the marine terminals and with that allow vessels to discharge your freight.
Nov 12, 2021 - Update 3
As the November 15th effective billing date on the new Container Excess Dwell fee looms, Maersk is aggressively working on developing as many solutions as possible for our customers. However, we still have many containers over 9 days inside the terminals, so we are in the process of securing additional land outside the marine terminals to offer extended storage solutions. If you have difficulty picking up your cargo, please reach out to your customer service representative to review which containers should be drayed to an off-dock location and we will make every effort to assist you.
Nov 1, 2021 - Update 2
As a follow up to the advisory sent on Oct 27th found here, and as it pertains to the new government mandated PSW Emergency fee, this update will serve to provide you with the most frequently asked questions for the matter at hand. It must be noted that we are still actively working with both regulators and the port of Los Angeles and Long Beach alike to gain a full understanding of all the issues at hand and as more information becomes available, trust we will do our utmost to keep you informed.
Oct 27, 2021 - Update 1
As terminal congestion at the ports of Los Angeles and Long Beach reach historical levels, The Biden Administration announced on October 25th that effective the 1st of November 2021, the ports of Los Angeles and Long Beach will begin charging an “emergency fee” on all long dwelling cargo.
- The fee will be applied to all containers that remain at the terminal for 9 days or more and rail containers for 6 days or more.
- The cost is $100 per container on the first day past the set dwelling limit for terminal or rail and will increase by $100 increments for each day that follows (i.e., $200 for day 2, $300 for day 3 and so on).
As directed by the President’s Task Force and in concert with the directive, the ports of Los Angeles and Long Beach will be responsible for collecting the fees, with the revenue set to be reinvested toward long term port efficiency and infrastructure programs that will help mitigate any future congestion challenges in the San Pedro Bay area. Given the 7-day notice period, much of how the cost will be charged and in turn collected is still to be determined. More will be shared in the coming days as we approach the 1st of November start date.
Naturally we understand this puts all parties involved in a rather difficult situation as truck, chassis and warehouse capacity are all extremely stretched. Rest assured, we are aggressively working on several solutions to help mitigate some of the impacts. We will continue to keep you informed on all developments over the coming days.
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