Industry News
Rules and precautions for the collection of huge detention fees in Los Angeles and Long Beach
Publish: 2021-11-16 Views: 337
A "container excess detention fee" for Los Angeles and Long Beach ports promoted by the US President Biden's Supply Chain Interruption Task Force has been officially implemented on November 1st!
According to official arrangements, the backlog of container detention data compiled by the terminal will be completed within two weeks, and the Los Angeles Port Commission will formally issue a bill for container detention at the terminal as early as November 15th!
The basic definitions and regulations of the new charging regulations
1. What is the official name of this fee?
Official English name: Container Excess Dwell Fee
Official Chinese name: container overdue detention fee
Remarks: There are many shipping companies who call Los Angeles and Long Beach ports "Emergency Fee" (emergency fee) or "Emergency Surcharge" (emergency surcharge)
Other ports in the U.S. do not have this charge for the time being
3. How long will this fee be implemented as a temporary measure?
The official implementation time is currently 90 days
(90-day policy)
4. After the container arrives at the port, how many days are there for exemption?
In the case of containers scheduled to move by truck, ocean carriers will be charged for every container dwelling nine days or more.
For containers moving by rail, ocean carriers will be charged if a container has dwelled for six days or more.
For containers transported by truck, a fee is charged for containers that stay at the terminal for 9 days or more.
For containers transported by rail, a fee will be charged for containers staying at the terminal for 6 days or more.
5. After the terminal is overdue, how is the overdue detention fee calculated?
The Port will charge ocean carriers in these two categories $100 per container,
increasing in $100 increments per container per day until the container leaves the terminal.
Starting from November 1st, the terminal will start charging for overdue containers, the charging standard is 100 US dollars per container, and each container will increase by 100 US dollars every day overtime!
For example, if you exceed the deadline, you will receive 100 on the first day; 200 on the second day, 300 on the third day... and so on.
The accumulated charges for 30 days beyond the expiry date will reach US$46,500.
The accumulated charges for 90 days beyond the expiry date will reach USD 409,500.
5. Who does the terminal charge for overdue detention? Who will pay the bill?
The terminal will charge the shipping company for this fee, but according to the shipping company’s bill of lading and related regulations, the shipping company will charge the ultimate shipper and freight forwarder for such additional fees charged by the port and government agencies.
Implementation rules of the new regulations and matters needing attention
The following implementation rules are based on the latest official interpretations released by Maersk, the world's largest container shipping company, and are a good reference for the majority of foreign trade, export and freight forwarding logistics companies.
1. When will the fee come into effect?
The fee plan will take effect on November 1, but specific penalties will be introduced after evaluation on November 15. The two-week grace period is to allow cargo owners to have proper time to clean up the docks. If substantial progress is made, the Port Executive Director may further extend the effective cost assessment date as appropriate.
2. Does it affect the containers already at the terminal (retrospective fee), or only the containers unloaded on or after November 1st?
As far as we know, starting from November 15th, all containers at the terminal will be charged retroactively.
3. How to evaluate the cost?
All containers that are stored for 9 days or more by truck transportation, or containers that are stored for 6 days or more by rail transportation, must pay the relevant fees. The 9th day and the 6th day are the first charging days.
4. What is the fee structure?
The fee for the first day is $100, the second day is $200, the third day is $300, and so on.
5. Does the charging period apply to working days or calendar days?
The surcharge will be based on calendar days, including Saturdays, Sundays and holidays.
6. How will the expenses incurred due to railway delays be handled?
We are still working with the terminal to clarify this, but as far as we know, fees will still be charged.
7. Will there be any additional detention fees due to congestion at the inland railway connection points?
We are still working with the terminal to clarify this, but as far as we know, fees will still be charged.
8. Will there be a cap on the charge? Or will the charge continue during the container's stay on the container terminal/railway?
Charges will be accumulated on a daily basis, and there is no maximum limit
9. Can containers detained due to customs inspection be exempted?
Not exempt
10. If there is no additional charge clause in the service contract, can the port charge be exempted?
No exemption, this clause does not apply to government mandatory fees.
11. According to FMC regulations, does Maersk need to fill in this new surcharge in our freight rate table and notify us 30 days in advance?
Maersk will announce the new surcharge in its fees. Although we will continue to work with customers to evacuate their long-stayed cargo, customers should be prepared to impose this surcharge on the same timeline announced by the port.
12. Who will charge the new surcharge? How to charge it?
We hope that the Port Authority will bill Maersk, and the fee will either be paid directly by the customer or collected by the terminal operator on our behalf before the goods are released.
13. If my container cannot be picked up due to lack of a chassis, will the emergency surcharge be waived?
It cannot be waived, and even if the chassis is lacking, a mandatory fee will still be charged.
14. If the cabinet cannot be picked up at the terminal, who will be responsible for the cost?
We are actively working with the terminal to clarify.
16. If the customer does not make an appointment at the terminal to pick up the counter, how to fairly evaluate it (calculated on a daily basis) and deal with it?
We are actively working with the terminal to clarify.
According to official arrangements, the backlog of container detention data compiled by the terminal will be completed within two weeks, and the Los Angeles Port Commission will formally issue a bill for container detention at the terminal as early as November 15th!
The basic definitions and regulations of the new charging regulations
1. What is the official name of this fee?
Official English name: Container Excess Dwell Fee
Official Chinese name: container overdue detention fee
Remarks: There are many shipping companies who call Los Angeles and Long Beach ports "Emergency Fee" (emergency fee) or "Emergency Surcharge" (emergency surcharge)
2. What is the scope of this charge?
Currently only applicable to the two major ports of Los Angeles and Long BeachOther ports in the U.S. do not have this charge for the time being
3. How long will this fee be implemented as a temporary measure?
The official implementation time is currently 90 days
(90-day policy)
4. After the container arrives at the port, how many days are there for exemption?
In the case of containers scheduled to move by truck, ocean carriers will be charged for every container dwelling nine days or more.
For containers moving by rail, ocean carriers will be charged if a container has dwelled for six days or more.
For containers transported by truck, a fee is charged for containers that stay at the terminal for 9 days or more.
For containers transported by rail, a fee will be charged for containers staying at the terminal for 6 days or more.
5. After the terminal is overdue, how is the overdue detention fee calculated?
The Port will charge ocean carriers in these two categories $100 per container,
increasing in $100 increments per container per day until the container leaves the terminal.
Starting from November 1st, the terminal will start charging for overdue containers, the charging standard is 100 US dollars per container, and each container will increase by 100 US dollars every day overtime!
For example, if you exceed the deadline, you will receive 100 on the first day; 200 on the second day, 300 on the third day... and so on.
The accumulated charges for 30 days beyond the expiry date will reach US$46,500.
The accumulated charges for 90 days beyond the expiry date will reach USD 409,500.
5. Who does the terminal charge for overdue detention? Who will pay the bill?
The terminal will charge the shipping company for this fee, but according to the shipping company’s bill of lading and related regulations, the shipping company will charge the ultimate shipper and freight forwarder for such additional fees charged by the port and government agencies.
Implementation rules of the new regulations and matters needing attention
The following implementation rules are based on the latest official interpretations released by Maersk, the world's largest container shipping company, and are a good reference for the majority of foreign trade, export and freight forwarding logistics companies.
1. When will the fee come into effect?
The fee plan will take effect on November 1, but specific penalties will be introduced after evaluation on November 15. The two-week grace period is to allow cargo owners to have proper time to clean up the docks. If substantial progress is made, the Port Executive Director may further extend the effective cost assessment date as appropriate.
2. Does it affect the containers already at the terminal (retrospective fee), or only the containers unloaded on or after November 1st?
As far as we know, starting from November 15th, all containers at the terminal will be charged retroactively.
3. How to evaluate the cost?
All containers that are stored for 9 days or more by truck transportation, or containers that are stored for 6 days or more by rail transportation, must pay the relevant fees. The 9th day and the 6th day are the first charging days.
4. What is the fee structure?
The fee for the first day is $100, the second day is $200, the third day is $300, and so on.
5. Does the charging period apply to working days or calendar days?
The surcharge will be based on calendar days, including Saturdays, Sundays and holidays.
6. How will the expenses incurred due to railway delays be handled?
We are still working with the terminal to clarify this, but as far as we know, fees will still be charged.
7. Will there be any additional detention fees due to congestion at the inland railway connection points?
We are still working with the terminal to clarify this, but as far as we know, fees will still be charged.
8. Will there be a cap on the charge? Or will the charge continue during the container's stay on the container terminal/railway?
Charges will be accumulated on a daily basis, and there is no maximum limit
9. Can containers detained due to customs inspection be exempted?
Not exempt
10. If there is no additional charge clause in the service contract, can the port charge be exempted?
No exemption, this clause does not apply to government mandatory fees.
11. According to FMC regulations, does Maersk need to fill in this new surcharge in our freight rate table and notify us 30 days in advance?
Maersk will announce the new surcharge in its fees. Although we will continue to work with customers to evacuate their long-stayed cargo, customers should be prepared to impose this surcharge on the same timeline announced by the port.
12. Who will charge the new surcharge? How to charge it?
We hope that the Port Authority will bill Maersk, and the fee will either be paid directly by the customer or collected by the terminal operator on our behalf before the goods are released.
13. If my container cannot be picked up due to lack of a chassis, will the emergency surcharge be waived?
It cannot be waived, and even if the chassis is lacking, a mandatory fee will still be charged.
14. If the cabinet cannot be picked up at the terminal, who will be responsible for the cost?
We are actively working with the terminal to clarify.
16. If the customer does not make an appointment at the terminal to pick up the counter, how to fairly evaluate it (calculated on a daily basis) and deal with it?
We are actively working with the terminal to clarify.
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