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The cure is worse than the disease, say critics of an emergency plan of the ports of Los Angeles and Long Beach backed by the Biden administration. If you think port congestion is bad now, just wait for what comes next.
On Wednesday, two days after the ports of Los Angeles and Long Beach announced a surprise emergency fee for containers lingering too long at terminals, the National Shippers Advisory Council (NSAC) held its inaugural meeting. NSAC, created to advise the Federal Maritime Commission, is composed of 12 U.S. importers and 12 exporters. Members include heavy hitters like Amazon, Walmart, Target, Office Depot and Ikea.
Council members had a lot to say about the California port fees — none of it good.

 

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D. Gibbons is a bad man
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The cure is worse than the disease, say critics of an emergency plan of the ports of Los Angeles and Long Beach backed by the Biden administration. If you think port congestion is bad now, just wait for what comes next.
On Wednesday, two days after the ports of Los Angeles and Long Beach announced a surprise emergency fee for containers lingering too long at terminals, the National Shippers Advisory Council (NSAC) held its inaugural meeting. NSAC, created to advise the Federal Maritime Commission, is composed of 12 U.S. importers and 12 exporters. Members include heavy hitters like Amazon, Walmart, Target, Office Depot and Ikea.
Council members had a lot to say about the California port fees — none of it good.

Not so sure this is a surprise fee as I believe every container terminal in the world has this type of surcharge written into handling / clearing agreements. There is also a lack of capacity upstream so many freight companies and end users have containers on the quayside.
 

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if you accept the fact that the PTB are wise, benevolent, and have the publics interest at heart, it is a baffling, inconceivable move.

if you accept the fact that someone, somewhere, is asking himself "how can I make things worse", this makes perfect sense.

if your theory does not agree with reality, believe reality and come up with a new theory.
 

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This is way outside my understanding, so, correct me if I am missing something here.

1. Container comes ashore sits in the terminal.
2. Lack of transportation causes container to sit.
3. Shipper is "taxed" for the amount of time the container sits in the port.
4. Multiple truckers site "lazy ship yard workers" for the amount of time they sit idle at port waiting for a container to be loaded.

Maybe I am missing the logical step, but how does fining the ship transporting the container help get the container out of dry storage?
 

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Freedom isn't free.
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what I want to know is, 6 months from now, will they be paying us to take cargo containers off their hands?
I won't even charge them for taking the containers. I'll take two- one trip 20 footers, high cubes, preferably with doors on both ends. Patriotic duty. Make America great again!
 

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Listen to the ghosts
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Which would be cheaper paying the fees and fines or pulling up anchor, transiting the Panama canal, and unloading in Galveston or Miami?
Or Corpus, or Houston, or Beaumont, or New Orleans, or Mobile, or Biloxi...many ways to skin that cat.

My guess is that at $100/day/container, the Panama Canal transit becomes economically attractive pretty quickly. LA/Long Beach are shooting themselves in the foot. And they aren't even actually fixing their problem. Classic first order thinking that liberals/socialists are famous for.
 

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D. Gibbons is a bad man
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Which would be cheaper paying the fees and fines or pulling up anchor, transiting the Panama canal, and unloading in Galveston or Miami?
Depends what the container is stuffed with, if you don’t have the warehouse staff to unstuff the container and your hauler has upped its rates you could find the fees overall cheaper than paying higher transportation / handling costs. Prior to the pandemic every yard would have a stack or two of these containers racking up charges.
 

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D. Gibbons is a bad man
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Follow the money.

When the fees aren't paid, who's going to confiscate the containers and sell off the contents? How much does the port pocket from that? Which politicians did the people that are going to profit support?

Sounds exactly like piracy or King George style political games, to me. I mean...EXACTLY.
Unless it’s perishable foods, volatile or short life chemicals the ownership of uncollected containers is usually a drawn out legal fandango. The container yard will usually stand to gain more from freeing up unit space than any monetary gain from taking ownership of the contents after court, auction costs.
 

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Anyone ever think to ask why is they're no space to put the containers trucking company's have lots full of them as well.

It's 100 per day after 24 hours that's nothing. You should see the airport it's 1000 per 12 hours after 16 hours. Per pallet
 
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