Port of New York-New Jersey Announces Implementation of a New Charge to Reduce Container Backlog

Port of New York-New Jersey Announces Implementation of a New Charge to Reduce Container Backlog

The Port of New York-New Jersey has announced that the Port of New York-New Jersey will implement a container imbalance fee in response to record volumes brought about by peak freight season and West Coast freight transfers. The implementation of the new fee, which will take effect from September 1 this year, will reduce the large backlog of empty containers at ports and free up much-needed storage space for containers loaded with imported cargo.

The Port of New York-New Jersey, the largest container port on the east coast of North America, is currently piling up containers 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 anchorages 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 already stressed supply chains in the region. We strongly encourage ocean shipping Efforts have been stepped up to move empty boxes faster and in greater quantities to make room for incoming imports, keeping trade flowing at the port and in the region.

The container imbalance fee, which will be levied on ocean carriers who do not ship empty containers out of port, will be $100 per container and will be assessed quarterly starting September 1. The fee stipulates that the total number of containers shipped out of the port by the shipping company must equal or exceed 110% of the total number of containers shipped into the port by the company during the same period. If that benchmark is not met, the shipping company will be charged $100 per container. Among them, import and export containers include loaded containers and empty containers, excluding railway freight volume.

This charge is calculated as: in a quarter, (the total number of imported containers shipped by an ocean carrier into the port - the number of imported containers it shipped as rail cargo) x 110% - (the ocean carrier shipped out of the port) Total number of export containers - the volume of export containers that are classified as rail cargo) x 100%, and the resulting number of containers multiplied by $100 is the total charge. The port explained that "rail cargo" refers to containerized cargo that leaves or arrives at the port by train on the intermodal rail network.

In addition to charging fees, the port has taken other steps to manage empty containers. This includes the establishment of temporary warehouses for empty and long-stay containers on a 12-acre parcel of land within the Port of Newark and Port Elizabeth Authority Marine Terminals, and other storage spaces are being negotiated and investigated.

The number of containers handled by the Port of New York-New Jersey so far this year is up nearly 12% compared to the same period last year and 34% compared to the same period in 2019 before the pandemic, the port reported. In addition, 18 container ships are waiting at anchorage outside the port, and depending on the terminal, the waiting time for a berth is more than 25 days.

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