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FREE TIME REDUCTIONS AT MAJOR PORTS…

NY – NJ Terminal

Possibilities of Maher Terminals tariff were first announced on Thursday, August 4th, by a Bi-State member. Despite Maher’s management team typically having good communications, recently Maher Terminals discreetly published this new tariff to the website, that will take effect on September 23, 2022. The tariff will count Saturdays, Sundays, and ILA holidays towards Free Time when the terminal is open on those days. Along with no weekend grace period, the new tariff also reduced the grace period for non-working holidays outlined in the International Longshoremen’s Association (ILA) contract. This move is one step towards getting supply chain operators to work outside of the traditional workweek.

Despite the incoming change shippers still have the same actual number of days (four) before containers start accruing demurrage. This change effectively shortens the time a shipper has to move their container before fees start. This tariff will also increase pressure on carriers and warehouses to operate longer hours.

Port of Long Beach

The Port of Long Beach (LGB) will also be implementing changes in regard to free time. Mario Cordero Executive Director announced on July 27th, that he would be taking steps to remove the weekend exemption for free time, to incentivize the use of weekend gates by marine terminal operators and to incentivize shippers to take advantage of these expanded weekend gate hours. Mario Cordero said, “I am announcing today that the Port of Long Beach will be shortening free time by removing the weekend exemption for free time effective September 1, 2022. Beginning September 1, 2022, free time will be inclusive of Saturdays and Sundays (except on legal holidays) when a container terminal in Long Beach is open on either of those days. I have determined that the interests of commerce and navigation require this shortening of free time for the foreseeable future, and I will revisit this matter as circumstances require.” Like Maher Terminals, LGB is taking steps towards getting supply chain operators to work outside of the traditional workweek.

If you have any questions, please contact your local Noatum Logistics representative.