L.A. Will Start Fining Shipping Companies Lingering at Marine Terminals Amid Supply Crisis

Two major California ports will begin fining shipping companies for lingering too long as supply chain woes persist.

Los Angeles and Long Beach port officials announced the fines on Monday as a way to encourage shipping companies to keep their containers moving on time, according to NBC Los Angeles. Containers set to be moved by truck will be allowed to stick around for nine days before the charges start accruing, while the ones set to be moved by rail will have three.

Fines for the companies will begin at a rate of $100 per container per day spent past the limit. The policy will go into effect as of November 1. Around 40 percent of all shipping containers that enter the U.S. go through the port of Los Angeles or Long Beach.

"The terminals are running out of space, and this will make room for the containers sitting on those ships at anchor," Port of Long Beach Executive Director Mario Cordero said in the statement.

The traffic jam of shipping vessels and containers at these ports, the largest on the West Coast, have contributed to the country's ongoing supply chain delays. Fines are only the latest in a string of tactics employed to get the traffic moving more smoothly.

President Joe Biden and his administration brokered a deal with the Port of Los Angeles earlier in the month to keep the shipyard running 24/7 while the backlog persists.

"With holidays coming up, you might be wondering if the gifts you plan to buy will arrive on time," Biden said in a statement. "Today we have some good news: We're going to help speed up the delivery of goods all across America.

The Union Pacific Railroad Company also committed to a round-the-clock schedule as of October 17 to keep cargo moving consistently.

"This expands access for customers to move freight in and out of [the Intermodal Container Transfer Facility] early on Sunday mornings and late Sunday evenings into early Monday morning to support the Ports of Los Angeles' and Long Beach's recent move to 24/7 operations," Union Pacific spokesperson Kristen South told Newsweek.

"This commitment from the railroad is just the latest step towards a 24/7 supply chain," White House press secretary Jen Psaki said.

The backlog of shipping vessels and containers at the ports of Los Angeles and Long Beach have gotten so dire that records have recently been broken back-to-back. On October 19, 100 ships were anchored while they waited to enter one of the ports, the most in history. This broke the all-time record of 97 ships, which was set in September. Prior to the pandemic, the ports would only see an average of 17 ships at anchor at any given time.