SIMIC

"We think the (demurrage) rates need to be higher to encourage cargo owners to move their cargo faster," said Port of Oakland executive director Danny Wan.

The late fees are charged by the shipping lines and the marine terminals when a container is not moved out of the port within the time allowed.

"Our belief is that the rates are still low because customers are still using the terminals as storage facilities," said Mr Wan.

The ports of Los Angeles and Long Beach announced surcharges in October 2021, but have delayed the penalty due to progress in the reduction of containers.

Meanwhile, the Port of Oakland's Central Valley pop-up yards are currently experiencing a shortage of container-handling equipment.

"The average dwell in Oakland terminal is now 9-12 days," said Mr Wan.

"It used to be 3-4 days. The 9-12 days incorporates rail dwell time because all rail cargo needs to be moved off the terminal to a near-dock rail facility."

Port of Los Angeles executive director Gene Seroka expressed his frustration about the matter.

"Sixty per cent of the aging containers are designated as rail cargo," said Mr Seroka.

"This needs improvement. Containers that move out by truck are doing well. Aggregate, long dwell numbers at the POLA are higher than we saw in February, but not close to last fall."