Biden-backed plan to clear California port congestion stalls

“We’re starting to see some traction,” Port of Los Angeles Executive Director Gene Seroka proclaimed on Bloomberg TV on Tuesday. “Those aging containers are down by 50% over the last six weeks.”

Seroka was referring to long-dwelling containers targeted by a dramatic, highly controversial fee plan backed by the Biden administration. Or rather, a plan that threatens to levy a fee that no one, including the ports, ever wants to be levied.

The fee on long-dwelling containers was set to begin on Nov. 1, then delayed until Nov. 15, then to Nov. 22, Nov. 29, Dec. 6 and Dec. 13. The string of delays has led to an increasing belief that the fee will never happen.

Will a plan to threaten a fee continue to work after so many reprieves, particularly as the “empty Christmas shelves” political risk dissipates?

It’s already working a lot less than it used to. American Shipper analyzed all of the available statistics and found that progress in clearing long-dwelling containers has slowed significantly over recent weeks.

Shipping consultant Jon Monroe wrote in his weekly newsletter: “My money says the new port surcharge may never be implemented — as long as we continue to improve the port congestion. And is this happening? NO. But don’t tell anybody. This is best kept a dirty little secret left uncovered.”

Meanwhile, percentage changes such as the one cited by Seroka are inherently prone to spinning. The White House reports declines measured in twenty-foot equivalent units, whereas the ports publicly report declines in containers, regardless of size. The ports of Long Beach and Los Angeles report their container numbers in two different ways. And any percentage change is heavily skewed by which date range you pick.