Port of New York and New Jersey adds fees for ocean carriers as shipping containers pile up

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 on Tuesday announced new rates tied to empty containers and export volume in its battle to ease container congestion. Loaded and empty containers that are considered long-lived will be subject to a quarterly “Container Imbalance Charge”. The tariff will take effect September 1, pending the mandatory 30-day federal notice.

The Port of New York and New Jersey is the largest port on the East Coast and the third largest in the country. Products that recently cleared customs in July range from BMW motorcycles and dresses for David’s Bridal out of China, parts for Plug Power, a gas stove for Tractor Supply and a “12 Days of Beauty Box” for Target.

But much like other ports, the Port of New York and New Jersey handled record volumes of import containers during the pandemic and saw those import containers wait longer at terminals. These containers have crowded onshore capacity and slowed port productivity. As a result, more ships are waiting at anchor.

Under the new tariff, ocean carriers who do not move empty containers out of port will be charged $100 per container. The port’s new container export levels require export volumes to be equal to or greater than 110% of an ocean carrier’s inbound container volume during the same period. If this criterion is not met, the ocean carrier will be assessed a fee of $100 per container for not having met this criterion. Both loaded and empty containers are included in the count of imported containers. Rail volume is excluded.

Record freight volume, excess containers

The surrounding land is also used by the port to make room for excess containers. The port has created temporary storage for empty containers and long-lived import containers on 12 acres of land in the Port of Newark and Elizabeth-Port Authority Marine Terminal. The port is also in negotiation and looking for additional areas that could be used for storage space.

“As we continue to manage record freight volumes and work with our tenants and port stakeholders for the timely removal of empty containers, we call on all industry stakeholders to find sustainable solutions. and long-term to an industry-wide issue affecting many U.S. ports,” Port Authority Chairman Kevin O’Toole said.

Decreased productivity results in increased travel time for ships. Increased anchor times can be tracked in Ship Transit Time from China to Port of New York and New Jersey.

“The Port of New York and New Jersey is dealing with record import volumes, resulting in a backlog of empty containers in and around the port complex, which is now affecting the regional supply chain which is already under strain. from various sources across the country,” Bethann Rooney said. , director of the port department of the Port Authority of New York and New Jersey. “We urge shipping carriers to step up their efforts to evacuate empty containers faster and at higher volumes to free up much-needed capacity for inbound imports to maintain trade in the port and region.”

European goods and German port tensions

East Coast ports like New York receive a lot of goods from Europe, where trade has been badly affected by ongoing port and rail labor disputes. Exports to the United States are at least two months late.

Among the thousands of containers that were imported into the Port of New York and New Jersey in July, according to a review of customs data using ImportGenius, were wine from Spain, pasta, Prosecco and Giorgio Armani suits from Italy, and furniture from France.

Planet, a new contributor to CNBC’s supply chain heatmap, took photos to show the impact of rail strikes that left containers crushed at Hamburg rail terminals. Due to the heavy cloud cover in July, comparisons are between May 15, 2022 and June 11, 2022. The container buildup is clearly visible. With continued labor disputes, the number of containers has increased, according to logistics experts, slowing trade.

Hamburg rail terminal comparisons

Planet

“The rail situation in Germany’s ports, particularly in Hamburg, remains tense and congestion is increasing,” said Andreas Braun, director of ocean products for Europe, Middle East and Africa at Crane Worldwide Logistics. .

Rail operators consistently miss their normal delivery and pick-up windows, and still cannot deliver loaded containers to the terminal less than seven days before loading. Due to the summer passenger schedule, container train operators have to give way to the increasing number of passenger trains, which also contributes to delays.

“At least a week late is normal now, but it can be up to two weeks and the constant threat that you’ll miss the ship,” Braun said.

The CNBC Heat M Supply Chainap the data providers are the artificial intelligence and predictive analysis company Everstream Analytics; the global freight booking platform Freightos, creator of the Freightos Baltic Dry Index; the logistics provider OL USA; the FreightWaves supply chain intelligence platform; the Blume Global supply chain platform; third-party logistics provider Orient Star Group; the marine analysis company MarineTraffic; marine visibility data company Project44; shipping data company MDS Transmodal UK; Ocean and Air Freight Rate Market Benchmarking and Analytics Platform Xeneta; leading research and analytics provider Sea-Intelligence ApS; worldwide crane logistics; and air, DHL Global Forwarding; freight logistics provider Seko Logistics; and Planet, provider of daily satellite images and global geospatial solutions.

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