The Port of Oakland has had enough of the long-dwelling import containers clogging its ports.
On July 1, Oakland is reducing the tariff-free time from seven days to four days to reduce congestion on its marine terminal, and may raise penalties for containers that sit for too long.
“We think the (demurrage) rates need to be higher to encourage cargo owners to move their cargo faster,” said Danny Wan, executive director for the Port of Oakland.
The Port of Oakland is not involved with assigning demurrage rates. The late fees are charged by both the shipping lines and the marine terminals when a container is not moved out of the port within the free days offered.
“Our belief is that the rates are still low because customers are still using the terminals as storage facilities,” Wan said.
