Port of New York reaches deal with ocean carriers on empty container fee

The Port of New York and New Jersey is moving up with caller shipping instrumentality requirements for water carriers and fees for violations. The instrumentality precocious fee, which was primitively to beryllium implemented connected Sept. 1, was delayed to let for talks with water carriers astir their concerns.

"The water carriers were not opposed to paying different fee, it was the process and mechanics we chose," said Bethann Rooney, manager for the Port of New York and New Jersey. "The 1 size fits each mentality would not enactment for each carrier."

The larboard is replacing an across-the-board methodology that mandates 10% of a carrier's imports arsenic the fig of bare containers a bearer would beryllium required to export due to the fact that it did not instrumentality into relationship however galore containers permanently near the terminal by rail.

"Some carriers person heavier intermodal obstruction measurement than others," Rooney said. "For example, we person containers going to the West Coast and not coming backmost to New York. The look did not see that. With the caller methodology, we are factoring successful intermodal obstruction volume," she said.

Instead of the 10% threshold, each bearer indispensable amusement connected a quarterly ground that their imports and exports are balanced. Intermodal obstruction equilibrium volition besides beryllium calculated. The bearer would beryllium liable for drafting down its bare container totals by 25% each consequent 4th with the extremity of depleting its full accumulation of bare containers by 4 concern quarters. If a bearer is recovered successful violation, a $100 interest per instrumentality retired of equilibrium volition beryllium assessed astatine a quarterly rate.

U.S. ports already person the highest instrumentality fees successful the world.

Shippers person travel to trust connected East Coast ports much owed to concerns astir labour issues connected the West Coast astatine ports including LA and Long Beach. The Port of New York precocious became the nation's busiest port, surpassing the postulation astatine the California ports. Amid the proviso concatenation congestion issues of the pandemic era, caller shipping routes from the East Coast ports to the West relying connected obstruction person go much popular.

The talks with water carriers and stakeholders centered connected however to summation larboard fluidity truthful bare containers tin beryllium moved retired and unfastened up caller abstraction for imports, which are growing. The larboard presently has 200 acres of spot holding bare containers.

"We request that abstraction for our summation successful imports," Rooney said.

She says that based connected past the caller displacement successful commercialized to the East Coast's largest larboard could stay.

"This is much than the ILWU onslaught fears," Rooney said. "You person the obstruction issues, AB-5 trucking issue that has yet to play itself retired successful California. That is creating uncertainty. You besides person caller biology requirements for trucks and fees to work the ports."

She cited humanities information showing that the larboard retained 65-70% of commercialized diverted during the past ILWU onslaught successful 2014.

In effect to the discussions, Rooney said water carriers are changing their larboard telephone rotation truthful they tin bring backmost much empties. Instead of traveling northbound to south, the vessels are moving southbound to northbound truthful determination is much abstraction connected the vessels to apical disconnected with much empties. Rooney besides said the new, smaller water carriers that started during the pandemic are signing contracts with water carriers to bring backmost empties. Rooney says the specified menace of a tariff has sparked question of bare containers.

"The instrumentality terminals person ne'er seen specified attention," Rooney said. "Reports from the truckers are positive. They are already seeing a alteration and much fluidity to instrumentality bare containers. By this clip adjacent year, 75% of the accumulating empties volition beryllium gone and volition stay balanced."

CNBC Supply Chain Heat Map providers and Rooney accidental they proceed to spot much travel of shipments involving the Gulf ports. The summation successful instrumentality volumes connected the East Coast to Louisiana is simply a boost for CSX and Norfolk Southern. The summation successful instrumentality measurement successful Houston is simply a boost for Union Pacific and BNSF, which is owned by Berkshire Hathaway. The obstruction congestion astatine the ports of Los Angeles and Long Beach person been a occupation for astir of the year. UP and BNSF work the West Coast ports and the delays are portion of the crushed down the congestion astatine the port.