Attention! This Port Announces an Additional Fee, Effective September 1 Recently, the Port Authority of New York-New Jersey announced that the Port of New York-New Jersey will implement a Container Imbalance Fee (CIF) to proactively respond to record cargo volumes resulting from the peak freight season and the shift of freight from the West Coast. The implementation of the new fee will reduce congestion caused by empty containers in the port, and for the loading of imported goods containers to free up much-needed storage space, the fee will come into effect on September 1 this year. It has been reported that too many containers are currently piling up at the port's terminals, taking up storage space and reducing productivity and mobility at the port, with the result that more and more container ships are waiting at anchor outside the port. The Port of New York-New Jersey is facing record import volumes, resulting in a buildup of empty containers in and around the port, which is now impacting the region's already stressed supply chain," said Bethann Rooney, Port Authority of New York-New Jersey Commissioner. We strongly encourage ocean carriers to step up their efforts to move empty containers faster and in larger quantities to free up space for arriving imports, thereby keeping trade flowing through the port and the region." In addition, the port has set a mandatory number of containers to be exported. Incoming and outgoing containers for which an imbalance fee is charged include loaded and empty containers, but not containers delivered by rail. The new rules are simple: the number of containers exported by a shipping company in a quarter needs to be greater than or equal to 110 percent of the number of containers imported (including empties), or else an imbalance fee of $100 per container will be charged. And the new regulations have similar "mandatory" requirements for the implementation of the fee, if the shipping company does not pay the fee for two consecutive quarters, it will be regarded as a breach of contract, which will also have an impact on its business in the port. Therefore, the new regulation will have a direct impact on the collection strategy of shipping companies. If a shipping company does not want to pay the fee, it will either reduce imports or increase exports. It is reported that the Port of New York-New Jersey is the Z-largest port on the U.S. East Coast and the preferred port to bypass congestion in U.S. West ports. From April to June, about 6.5% of cargo is shifted from the West Coast. So far, container throughput at the Port of New York-New Jersey is up about 12 percent year-over-year and 34 percent higher than in 2019 before the outbreak. Delays from China to the Port of New York-New Jersey are also increasing as more containers pile up at the terminals. The port is currently preparing for the onset of U.S. Z's busy holiday shopping season and needs to clear the port's backlog of empty containers as soon as possible in order to aggressively next respond to record cargo volumes due to the peak shipping season and the shift of cargo from the West Coast. In addition to the fees, the Port Authority has taken other steps to manage empty containers, including dedicating 12 acres of land within the Port of Newark and Elizabeth Port Authority Marine Terminal for temporary warehousing for empty and long-stalled containers, and is negotiating and investigating additional storage space. Port officials told American Shipper that the fees will be reassessed once the container congestion woes ease. A review by the agency's commission is needed no later than September 2023.
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