California docks see 'significant progress' with supply chain backlog, port chief says

4 days ago

Container cargo ships beryllium disconnected enactment from the Long Beach/Los Angeles larboard analyzable successful Long Beach, CA, connected Wednesday, October 6, 2021.

Jeff Gritchen | MediaNews Group | Getty Images

WASHINGTON – The enforcement manager of the Port of Long Beach said Wednesday that the duplicate ports successful California are making "significant progress" successful addressing the backlog of cargo ships and containers.

"I deliberation we're moving guardant with immoderate advancement and hopefully, arsenic we determination into the adjacent six months we're going to proceed to mitigate the script that we're seeing here," Mario Cordero, enforcement manager of the Port of Long Beach told CNBC's Becky Quick connected "Squawk Box."

Cordero said that the duplicate ports of Long Beach and Los Angeles, which relationship for 40% of oversea freight entering the United States, are moving astir the timepiece to offload containers.

In bid to code the backlog of instrumentality ships, congestion caused successful portion by a planetary shutdown pursuing the coronavirus outbreak, the duplicate California ports announced unprecedented fees connected shipping carriers.

The fines, which were announced successful a associated connection from some larboard directors connected Oct. 25, complaint carriers $100 a time per instrumentality near connected the dock. Carriers would person a maximum of 9 days to determination containers by motortruck earlier fines commencement accruing and six days if transporting by rail.

Since the announcement of the caller fees, which person yet to beryllium imposed, some ports person seen lingering cargo containers reduced by 33%. Cordero says determination are inactive astir 61 cargo ships disconnected the California seashore waiting to unload. That compares to a grounds 111 ships conscionable 2 weeks ago, according to information from the Marine Exchange.

The fines, referred to arsenic "Container Dwell Fees," came connected the heels of the Biden administration's plan to tally operations 24/7 astatine the ports of Los Angeles and Long Beach. Cordero says that portion ramping up operations has helped relieve the logjam astatine the nation's busiest larboard complex, determination are inactive different issues to code successful the proviso chain.

"There are truckers, marine terminal operators, warehouses, railroads and larboard authorities," explained Cordero, adding that a lasting solution would entail "a existent collaborative effort" from each parties.

"That volition instrumentality clip but the bully quality is there's a precise robust speech with respect to the request to person a transformational change."