Ports of New York and New Jersey raise fees for ocean carriers as containers pile up at ports

The Ports of New York and New Jersey announced new tariffs on empty containers and export volumes on Aug. 2 to reduce container congestion. Both loaded and empty containers deemed to be long-term residents will be subject to a quarterly “container imbalance fee”. Indirectly increases ocean carriers costs. The tariffs will go into effect on September 1, pending a mandatory federal 30-day notice.

The Ports of New York and New Jersey are the largest ports on the East Coast and the third largest in the country. Products that recently passed customs in July include BMW motorcycles and Davy’s Chinese bridal gowns, parts from Plug Power, gas stoves supplied by tractors, and Target’s “12-day beauty box.”

But like other ports, the Ports of New York and New Jersey handled record numbers of import containers during the pandemic and saw those import containers wait longer at the terminals. These containers clog land capacity and slow port productivity. As a result, more ships were waiting at anchor.

Under the new tariffs, ocean carriers that do not ship empty containers out of port will be charged $100 per container. The port’s new container export level requires that exports must equal or exceed 110% of the ocean carrier’s incoming container volume for the same period. If the benchmark is not met, the ocean carrier will be assessed a fee of $100 per container for failing to meet the benchmark. Both loaded and empty containers are included in the import container count. Does not include rail volume.

Ship delays between Chinese ports and New York City

“The Ports of New York and New Jersey are facing record import volumes, resulting in the accumulation of empty containers in and around port complexes, and are now impacting regional supply chains that are already under pressure from a variety of sources across the country,” said Bethann Rooney, New York and Director of the Port Division of the Port of New Jersey. “We strongly encourage ocean carriers to step up their efforts to evacuate empty containers faster and in greater quantities to free up much-needed capacity for incoming imports to keep trade flowing in ports and in the region.”