13.1 C
Vancouver
Saturday, May 15, 2021

California Ports charging higher surcharges

 

Shippers are paying higher surcharges for truckers’ wait times at the Ports of Los Angeles and Long Beach because congestions are threatening shipments. Port trucking companies are charging before $50-100 per hour of wait time, sometimes after just one hour, because of lost productivity, and desperate shippers are paying up.

Carrier executives have said that drivers who usually make four trips per day have been cut down to fewer than two due to the congestion. After spending an hour in line, a truck driver will contact the shipper and present two options, according to Fred Johring, president of Golden State Express and chairman of the Harbor Trucking Association of Southern California. The shipper can either pay the carrier’s surcharge or the trucker will leave and go after another load. Along with the congestion has come a reduction in truck capacity.

Port carriers report that they are regularly turning down requests from new customers because they are struggling to keep up with current demands.