Supply chain crisis: Ports to start issuing fines

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(NewsNation Now) — Two of the nation’s busiest ports are now issuing fines for cargo containers that sit around too long.

The ports of Los Angeles and Long Beach announced the plan Monday in an effort to ease congestion as major issues continue to plague the nation’s supply chain.

The twin ports said in a statement that arriving containers scheduled to be moved by trucks will be allowed to stay for nine days before fines start accruing. Containers set to move by rail can stay at the ports for three days.

After that, ocean carriers will be charged $100 per container, increasing in $100 increments per container per day, the statement said.

The new rules will go into effect Nov. 1.

The announcement of fines was made following the Biden administration opening up the port complex 24 hours a day trying to relieve the logjam of massive cargo ships that has interrupted the global supply chain.

“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.

About 40% of all shipping containers entering the U.S. come through the Los Angeles and Long Beach ports.

There may be other ports, including New Orleans and Jacksonville, Florida, that can ease the pressure from the Southern California ports, but distance is a factor.

“It comes down to a waiting game,” NewsNation’s Aaron Nolan said on “Morning in America.” “At the end of the day, it all comes down to time.”

The Associated Press contributed to this report.

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