NY/NJ - Port of New York and New Jersey adds fees for ocean carriers as shipping containers pile up
The Port of New York and New Jersey is adding a “container imbalance fee,” effective September 1, as a way to encourage ocean carriers to move containers out of ports more quickly. Port of New York and New Jersey is the nation’s third-largest port and the largest port complex on the East Coast, receiving millions of containers from Europe.
The Port of New York and New Jersey announced new tariffs on Tuesday related to empty containers and export volume in its battle to decrease container congestion. Both loaded and empty containers that are considered long-dwelling will be subjected to a quarterly “container imbalance fee.” The tariff will be effective as of September 1, pending the mandatory federal 30-day notice.
The Port of New York and New Jersey is the largest port on the East Coast and the third-largest in the nation. Products that were recently processed through customs in July range from BMWmotorcycles and dresses for David’s Bridal out of China, parts for Plug Power, a gas cooker for Tractor Supply, and a “12 Days of Beauty Box” for Target.
But just like other ports, the Port of New York and New Jersey has processed record volumes of import containers during the pandemic and has seen these import containers wait longer at the terminals. These containers have clogged land capacity and slowed down port productivity. As a result, more vessels wait at anchor.
Under the new tariff, ocean carriers who do not move empty containers out of the port will be charged $100 per container. The port’s new container export levels mandate that export volumes must equal or exceed 110% of an ocean carrier’s incoming container volume during the same period. If that benchmark is not met, the ocean carrier will be assessed a fee of $100 per container for failing to hit this benchmark. Both loaded and empty containers are included in the import container count. Rail volume is excluded.
Record cargo volume, excess containers
Surrounding land is also being used by the port to make room for the excess containers. The port created temporary storage for both empty containers and long-dwelling import containers in a 12-acre lot within the Port Newark and the Elizabeth-Port Authority Marine Terminal. The port is also in negotiations and researching additional areas that could be used for storage space.
“As we continue to manage record cargo volume and work with our tenants and port stakeholders for the removal of empty containers in a timely manner, we call on all industry stakeholders to find sustainable, long-term solutions to an industrywide problem affecting many U.S. ports,” said Port Authority Chairman Kevin O’Toole.