Long Beach gives shippers extra free time

Temporarily extending storage is fair because marine terminals are gridlocked, port officials say.    The Port of Long Beach on Saturday began a two-week extension of the normal free time cargo owners are allowed to pick up an imported container in recognition of the severe congestion currently griping Southern California marine terminals. It is the latest step taken by new Chief Executive Jon Slangerup to address bottlenecks at the port that are hampering the supply chains of many businesses.
   Shippers in Long Beach normally receive four business days from vessel discharge to pick up their cargo before a storage fee, or demurrage, is assessed. The port authority said it will give cargo owners seven business days to pick up loads, through Oct. 31.
   Ports tend to handle elevated volumes in the fall months as retailers bring in merchandise for the holiday shopping season. Terminal operations have been strained this year by the arrival of larger vessels that make fewer port calls, but dump thousands of extra TEUs at one time, and a shortage of chassis to haul containers. Truck drivers are frustrated by long delays getting in and out of terminals, and the amount of time it takes to make a single turn or round trip.
   “The terminal congestion is very unfortunate, and a truly exceptional occurrence, so I am using my authority to waive demurrage fees through the end of the month,” Slangerup said in a statement.
   Demurrage terms are set in the port’s tariff, with terminals sharing in the receipts. How demurrage is calculated and who is responsible for collecting the fee varies by port.
   Cargo owners in Long Beach normally are charged $44 for 40-foot containers for the first five days beyond the free limit and $87 every day after that.
   The Federal Maritime Commission is studying the situation in Long Beach and other ports to identify potential solutions to the productivity problems. Motor carrier representatives at a field hearing in Baltimore earlier this month complained that shipping lines and terminals should not be charging demurrage for delays in getting boxes that are not the fault of the trucker. Shippers are also expressing concern about being hit with fees for not picking up containers on time for reasons over which they have no control.
   Last week, the Harbor Commission approved Slangerup’s plan to purchase a fleet of chassis that would be offered to truckers and shippers when private leasing companies are short equipment during peak periods. Slangerup, who has been on the job for about three months, is a former chief executive officer of FedEx Canada; he more recently headed several technology start ups and clean energy companies. 
   Port productivity is a topic Long Beach officials are discussing with customers during a trade mission to Asia, according to the port authority. Harbor Commissioners and senior staff are scheduled to meet with senior leaders of shipping lines in China, Hong Kong, Taiwan, Korea and Japan in an effort to bring in more cargo business, as well as introduce Slangerup and Robert Garcia, the city of Long Beach’s new mayor, to current and prospective customers.