Port Congestion Update 11/12/21

Weekly Vessels Anchored and at Terminals as of 11/12/2021

LA & LB: Anchored 80 | Terminal 31
Oakland: Anchored 3 | Terminal 6 | Drifting 1
NWSA: Anchored (n/a) | Terminal (n/a) | Drifting (n/a)

Vessel Congestion Update
On November 10, 2021, the Marine Exchange of Southern California reported a total of 164 ships in the port complex of Los Angeles (LA) and Long Beach (LB). Of the 164 vessels, 109 are container ships with 79 at anchorage/drift and 30 at terminal/berth. The container vessels are waiting for an average of 13.7-16.1 days to reach a terminal to unload.

An estimated 700,000 containers are waiting on the water and this is coupled with the American Trucking Association (ATA) announcement in October 2021, that the national trucking industry is short 80,000 drivers which is 30 percent more than before the pandemic. Additionally, truckers continue to experience restrictions at the twin port complex which include drivers who are required to make appointments to pick up and drop off containers, specific restrictions regarding the types of trucks allowed to operate inside the terminals, and truckers frequently claiming that they are rejected from leaving empties at terminals.

PIERPASS– Temporary Adjustment at the Ports of LA and LB
On November 10, 2021, the West Coast Management Agreement announced the Traffic Mitigation Fee (TMF) at the ports of LA and LB will be temporarily adjusted from December 1, 2021, through January 31, 2022, subject to regulatory clearance by the Federal Maritime Commission. As part of the continuing effort to incentivize and to increase the use of marine terminal gates during off-peak hours, from December 1st, through January 31, 2022, the TMF will be $78.23 per TEU (Twenty-foot Equivalent Unit) or $156.46 on all other sizes of containers for non-exempt international container moves through the terminals between the hours of 7:00 am and 5:59 pm Monday through Friday.

Infrastructure Bill – Approved
On November 9, 2021, The White House announced its plans to move quickly on a $17 billion revamp of U.S. ports. The infrastructure deal, approved by Congress, is intended to improve infrastructure at coastal ports, inland ports, waterways, and the land ports of entry along the U.S. border.

In part, within the next 90 days, the administration plans to: (1) award $230 million in funding for the Port Infrastructure Development Grand program and $13 million for the Marine Highway Program to modernize ports and marine highways, (2) develop a roadmap and funding of $4 billion to repair outdated infrastructures and deepen harbors for larger cargo ships, (3) identify $3.4 billion in investments to upgrade obsolete inspection facilities and allow more efficient trade across borders with Mexico and Canada, and (4) open competition for the first round of grants that will provide more than $475 million for port and marine highway infrastructure. The actual funding and distribution of funding for these programs have not been distributed.

Over the longer term, the administration intends to help states direct federal resources to transportation supply chain needs by: (1) publishing a playbook on how to use Dept. of Transportation grant and loan programs to support goods movement and help alleviate freight bottlenecks, (2) strengthening the continued production of state plans to include supply chain cargo flows, inventory of commercial ports, impacts of e-commerce on freight infrastructure, and assessment of truck parking facilities, and (3) publishing a request of information on standardized data exchange requirements for goods movement in the transportation supply chain.

State of California Department of Motor Vehicles (DMV)
On November 10, 2021, the DMV announced it will boost its capacity to administer commercial driving tests. In the hope of alleviating the backlog of goods at the ports of LA/LB, the DMV offers Saturday commercial driving test appointments at three additional offices, bringing an overall number of Saturday test sites to 15. The DMV officials noted that the highest demand for the tests is in the Los Angeles area. It will nearly double the number of available driving tests being made available.

Clean Truck Fund Rate Program/Collection Fee
Years in the planning, the Port of LB will implement a fee for older, pollution-producing trucks and LB will have a controversial exemption for natural gas vehicles. The fee will be charged to cargo owners and used to fund truck initiatives to reduce emissions with the goal of reaching zero emissions by 2035 at the port. The fee collection will begin April 1, 2022, at the rate of $10 for each 20-foot equivalent unit. The rate collection mechanism is being established and should be announced by March 2022. Based on current cargo volumes, the fee is expected to generate about $90 million for the ports of Long Beach and Los Angeles combined annually in the early years, as both LA/LB will collect a Clean Truck Fund fee. Zero-emission trucks are not widely commercially available, which makes a faster transition impossible. The use of natural gas trucks in the interim is the best option while reducing emissions when compared to diesel trucks.

Please contact your Western Overseas representative with any questions.