A cargo ship moves under the Bayonne Bridge as it enters port on October 13, 2021 in Bayonne, New Jersey.
Spencer Platt | beautiful pictures
The Port of New York and New Jersey are rolling out new shipping container requirements for ocean carriers and breach fees. The container delay charge, which was originally to be implemented on September 1, has been delayed to allow ocean carriers to negotiate their concerns.
Bethany Rooney, Port Manager of New York and New Jersey, said: “Ocean carriers have no objection to paying a different fee, that is the process and mechanism we choose. “One size fits every mentality won’t fit every carrier.”
The port is replacing an aggregate method that stipulates 10% of a carrier’s imports because of the number of empty containers a carrier will have to export because it doesn’t take into account how many containers leave the terminal permanently by rail. .
“Some carriers have heavier intermodal rail volumes than others,” says Rooney. “For example, we have containers going to the West Coast and not going back to New York. The formula hasn’t taken that into account. With the new methodology, we’re factoring intermodal rail volumes.” , she said.
Instead of the 10% threshold, each carrier must show that its imports and exports are balanced every quarter. The intermodal rail balance will also be calculated. The carrier will be responsible for reducing its total empties by 25% each subsequent quarter with the goal of depleting the total number of empty containers in four business quarters. If the carrier is found in violation, a fee of $100 per container in addition to the balance will be charged on a quarterly basis.
US ports already have highest container fees in the world.
Shippers have been visiting more East Coast ports due to concerns about West Coast labor issues at ports including LA and Long Beach. New York Harbor nearby became the nation’s busiest port, overtaking the traffic at California ports. Amid pandemic-era supply chain bottlenecks, new shipping routes from East Coast ports to West Railway reliance has become more common.
Negotiations with shipping lines and other stakeholders focus on how to increase port mobility so that empty containers can be moved out and open up new spaces for imports. capital is increasing. The port currently has 200 acres of land filled with empty containers.
“We need that space to increase imports,” said Rooney.
She said that based on history, the recent trade shift to the East Coast’s largest port could stay.
“This is more than ILWU strikes fear“Rooney said.” You have a railway problem, Road transport problem AB-5 It hasn’t worked in California yet. That is creating uncertainty. You also have new environmental requirements for trucks and port service charges. “
She cited historical data showing that the port withheld 65-70% of trade diverted during the last ILWU strike in 2014.
Responding to discussions, Rooney said ocean carriers are changing their call rotation so they can bring in more space. Instead of going from north to south, ships are moving from south to north for more space on ships with more space. Rooney also said new, smaller ocean carriers that have started during the pandemic are contracting with ocean carriers to bring in carriers. Rooney says the mere threat of tariffs has sparked the movement of empty containers.
“Container terminals have never been given such attention,” said Rooney. “Reports from truck owners have been positive. They’ve noticed a change and more mobility in returning empty containers. By this time next year, 75% of the accumulated empty stock will be gone and will be. still balanced.”
Supply Chain Heatmap providers CNBC and Rooney say they continue to see more shipping flows involving Gulf ports. The increase in container volumes on the East Coast to Louisiana is a driving force CSX and Norfolk Southern. The increase in container volumes in Houston is a driving force for Union Pacific and BNSF, owned by Berkshire Hathaway. Railroad congestion at the ports of Los Angeles and Long Beach has was a problem most of the year. UP and BNSF serve West Coast ports and delays are part of the reason behind port congestion.
