A new fee on cargo passing through the ports of Los Angeles and Long Beach may start in the second half of 2021, a Port of Los Angeles spokesperson said, citing remarks from port staff at a Jan. 27 meeting. But each port’s harbor commission will need to vote to approve a start date for the Clean Truck Fund rate before the fee begins, the spokesperson said. Approved in March 2020, the fee will be assessed at $10 per twenty-foot equivalent unit (TEU) -- to be paid by the beneficial cargo owner -- for loaded containers hauled by heavy-duty trucks that enter or exit port terminals. The fee is intended to incentivize adoption of zero emissions trucks, which will be exempt from the fee. The ports are also considering exemptions for low nitrogen oxide trucks. Implementation of the fee has been delayed by the COVID-19 pandemic, the spokesperson said.
Detention and demurrage disruptions are causing devastating damage to U.S. intermodal carriers and are placing large burdens on the shipping and transportation industry, the Harbor Trucking Association said in a new report. The association, which represents U.S. drayage carriers serving West Coast ports, and TradeLanes, a technology company focused on streamlining global commodity trade, surveyed HTA members and found that more than half reported critical negative effects on their business from the detention and demurrage costs. Detention and demurrage is common in the industry as well, with 64% of respondents saying that they incur them on more than 15% of their containers with the average price around $200 per container. Once the charges are levied, governmental relief is rarely given, with 80% of respondents saying they got charges reduced 0-25% of the time. The charges cost more than money, evidenced by the majority of respondents saying the invoices take at least 45 minutes to complete.
CMA CGM, American President Lines, APL, and ANL Singapore are asking the Federal Maritime Commission for permission to retroactively apply service contract rates and terms to shipments received on or after Sept. 27 for a period of 60 days (see 2010090022). Their petition also is asking for the ability to retroactively apply tariff rates communicated to its customers but that have not been published because of “major system impacts due to the recent cyber-attack.” The FMC is asking for public comments on this request through Oct. 15.
Five cargo handling organizations published guidance and a checklist on international packing standards to improve safety practices for freight containers. The groups said they are concerned by a rise in container fires aboard ships. The guidance covers the United Nations’ Code of Practice for Packing of Cargo Transport Units (CTU). The checklist details “actions and responsibilities” for those in charge of packing cargo in freight containers to help reduce “serious injuries” among shipping crews and port staff.
Illegal trade in plastic trash has sharply risen over the past two years, mostly driven by criminal organizations that use legitimate pollution management businesses as covers for their operations, Interpol said in an Aug. 27 report. Criminal groups are shipping waste primarily through “multiple transit countries” in Southeast Asia to hide the shipments' origin, Interpol said. The report details “emerging trafficking routes” for illegal trash trade and recommends that governments increase enforcement.
Denmark-based A.P. Moller-Maersk, the world’s “top container shipping firm,” will stop shipping solid waste to China and Hong Kong, effective in September, Reuters reported July 22. The move comes as China has imposed a series of measures to reduce solid waste imports, with hopes to eventually reach zero (see 2006030010 and 2001210024). Maersk said its decision “aims to fully comply with government requirements of the People’s Republic of China on zero solid waste import as of 2021,” according to Reuters. Maersk did not comment.
A KPMG June tax report on shipping and offshore activities details country developments on easing and restricting tax measures for the shipping industry. The report covers revisions of tonnage taxes in Croatia, Cyprus and Greece; reduced value-added tax rates in Germany; a recently issued tax regime for ship leasing in Hong Kong; and other information.
A longshoreman's union on the West Coast is calling for a one-day work stoppage on June 19 in response to racism and police brutality, the Local 10 leader told Jacobin magazine. International Longshore and Warehouse Union Local 10 is a majority African American local, and the stoppage is also in protest of what it called plans to privatize the port of Oakland. The stoppage will be for eight hours, and will affect all 29 ports on the West Coast.
The Federal Maritime Commission is using newly formed Supply Chain Innovation Teams to look into potential agency actions to reduce supply chain slowdowns related to the COVID-19 pandemic, the FMC said in an April 6 news release. Commissioner Rebecca Dye, who is overseeing the effort, and the teams will “begin work this week to identify what actions can provide immediate relief to the most pressing challenges the American freight delivery system faces from COVID-19 related disruptions,” it said. The information provided by team members about possible FMC actions “will dictate the scope and priorities of the Teams’ work,” it said. Dye said the teams “are committed to minimizing disruptions to the Nation’s cargo delivery system and will be prepared to offer practical solutions about what must be done to promote the competitive advantage of our supply chain networks,” The teams are an offshoot of the FMC's investigation into detention and demurrage fees that resulted in a proposed interpretive rule (see 2003170058).
Treasury Secretary Steven Mnuchin hasn't talked specifically to cargo airlines' executives, though he said with regard to passenger airlines “I've had conversations around the clock with all the airline CEOs.” Mnuchin spoke to reporters after leaving the Senate Republicans luncheon. “Essential travel, we want to have airlines that operate, maybe on a reduced basis. Airlines have a short-term liquidity issue, and absolutely, that's something we talked about today” with Senate Republicans. “I've also spoken to the [House] Speaker about that,” he said.