US L.A. Will Start Fining Shipping Companies Lingering at Marine Terminals Amid Supply Crisis
Supply chain crisis has voters on edge
As the pandemic pushes Americans toward online shopping websites, consumption has increased dramatically — and supply chains can’t keep up.Suddenly, logistics and supply chain management — traditionally mundane topics — are becoming important political issues as the nation longs for things to return to “normal.
Two major California ports will begin fining shipping companies for lingering too long as supply chain woes persist.
Los Angeles and Long Beach port officials announced the fines on Monday as a way to encourage shipping companies to keep their containers moving on time, according toLos Angeles. Containers set to be moved by truck will be allowed to stick around for nine days before the charges start accruing, while the ones set to be moved by rail will have three.
The White House has considered deploying the National Guard to combat the supply-chain crisis, but it's reportedly unlikely
"I think that any opportunity to make a difference will be looked at," Transportation Secretary Pete Buttigieg said over the weekend. If deployed, the National Guard could help move cargo off backlogged ships in ports in Los Angeles and Long Beach, through bottlenecks at warehouses and railroads, as well as drive trucks to deliver the goods. Video: Buttigieg defends Biden's plan to solve supply chain issues: A lot must 'go right' (FOX News) Your browser does not support this video Last week, President Joe Biden engaged with a series of meetings with port officials and major retailers like Walmart.
Fines for the companies will begin at a rate of $100 per container per day spent past the limit. The policy will go into effect as of November 1. Around 40 percent of all shipping containers that enter the U.S. go through the port of Los Angeles or Long Beach.
"The terminals are running out of space, and this will make room for the containers sitting on those ships at anchor," Port of Long Beach Executive Director Mario Cordero said in the statement.
The traffic jam of shipping vessels and containers at these ports, the largest on the West Coast, have contributed to the country's ongoing supply chain delays. Fines are only the latest in a string of tactics employed to get the traffic moving more smoothly.
Fact check: Supply chain delays not related to COVID-19 vaccine mandates
Experts say vaccine mandates are not responsible for the current nationwide shipping delays. "The online claim is too strong," John Macdonald, associate professor of supply chain management and logistics at Colorado State University, said in an email. "Drivers from companies I contacted have had no challenges fulfilling their job duties due to vaccination status." USA TODAY reached out to Todd and the Facebook user who shared the post for comment.
Presidentand his administration the Port of Los Angeles earlier in the month to keep the shipyard running 24/7 while the backlog persists.
"With holidays coming up, you might be wondering if the gifts you plan to buy will arrive on time," Biden said in a statement. "Today we have some good news: We're going to help speed up the delivery of goods all across America.
The Union Pacific Railroad Company also committed toas of October 17 to keep cargo moving consistently.
"This expands access for customers to move freight in and out of [the Intermodal Container Transfer Facility] early on Sunday mornings and late Sunday evenings into early Monday morning to support the Ports of Los Angeles' and Long Beach's recent move to 24/7 operations," Union Pacific spokesperson Kristen South told Newsweek.
"This commitment from the railroad is just the latest step towards a 24/7 supply chain," White House press secretarysaid.
Ports of LA, Long Beach to fine firms over container backlog
LOS ANGELES (AP) — In an effort to ease congestion at the nation’s busiest port complex, officials said Monday that they will start fining shipping companies whose cargo containers linger for too long at marine terminals. The twin ports of Los Angeles and Long Beach said in a statement that arriving containers scheduled to be moved by trucks will be allowed to stay for nine days before fines start accruing. Containers set to move by rail can stay at the ports for three days. © Provided by Associated Press In this Tuesday, Oct. 19, 2021, photo shipping containers are stacked up at Maersk APM Terminals Pacific at the Port of Los Angeles.
The backlog of shipping vessels and containers at the ports of Los Angeles and Long Beach have gotten so dire that records have recently. On October 19, 100 ships were anchored while they waited to enter one of the ports, the most in history. This broke the all-time record of 97 ships, which was set in September. Prior to the pandemic, the ports would only see an average of 17 ships at anchor at any given time.
Thieves Target Shipping Containers Amid Logjam at America's Ports .
Cargo has been targeted in LA as the county struggles to clear backlogs of containers in the shipping crisis.Thousands of boxes which were previously being held on Union Pacific trains as they wait to make their way into the Ports of Los Angeles and Long Beach have been seen strewn by the train tracks at Valley Boulevard and North Mission Road in Lincoln Park.