Recently, the Port Authority of New York-New Jersey announced that the Port of New York-New Jersey will implement a container imbalance fee to actively cope with the record cargo volume caused by the peak cargo season and West Coast freight diversion.
The implementation of the new fee, which will take effect from September 1 this year, will reduce congestion caused by empty containers at the port and free up much-needed storage space for containers carrying imported goods.
It is reported that too many containers are currently accumulating at the port’s terminals, taking up storage space and reducing the port’s productivity and liquidity. As a result, more and more container ships are waiting at the anchorage outside the port.
Bethann Rooney, Commissioner of the Port Authority of New York-New Jersey, said: “The Port of New York-New Jersey is facing record import volumes, resulting in the accumulation of empty containers in and around the port, which is now impacting the region’s already stressed supply chain. We strongly encourage ocean carriers Efforts have been stepped up to move empties faster and in larger quantities to free up space for incoming imports, keeping trade flowing at the port and in the region.”
In addition, the port has set a mandatory number of container exports. Incoming and outgoing containers subject to imbalance fees include loaded and empty containers, but do not include containers shipped by rail.
In simple terms, the new regulations: within a quarter, the number of export containers of a shipping company must be greater than or equal to 110% of the import containers (including empty containers), otherwise an imbalance fee of US$100 per container will be charged.
Moreover, the new regulations have similar “mandatory” implementation requirements for fees. If a shipping company fails to pay the fees for two consecutive quarters, it will be regarded as a breach of contract, which will also have an impact on its port business.
Therefore, the new regulations will directly affect shipping companies’ receiving strategies. If shipping companies do not want to pay this fee, they must either reduce imports or increase exports.
It is reported that the Port of New York-New Jersey is the largest port on the east coast of the United States and the first choice port to bypass port congestion in the western United States.
From April to June, about 6.5% of cargo volume was transferred from the West Coast. So far, container throughput at the Port of New York-New Jersey has increased by about 12% year-on-year and is 34% higher than in 2019 before the epidemic.
Delays from China to the Port of New York-New Jersey are mounting as more containers pile up at terminals.
Currently, the port is preparing for the arrival of the busiest holiday shopping season in the United States. It needs to clear the backlog of empty containers as soon as possible to actively cope with the record cargo volume due to the peak cargo season and the transfer of cargo to the West Coast.
In addition to the fees, the Port Authority has taken other steps to manage empty containers, including dedicating 12 acres of land within the Port Authority’s marine terminals at the Port of Newark and Elizabeth to a temporary warehouse for empty and long-term stranded containers, and is negotiating and investigate other storage spaces.
Port officials told U.S. shippers that fees will be reassessed once container congestion eases. A review by the agency’s committee is required no later than September 2023.
Attached, the content of the new regulations:
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