At the twin ports of Los Angeles and Long Beach — America's busiest trade gateways — mountains of shipping containers await truck transport to destinations nationwide. The congestion not only delays deliveries but strains the entire supply chain. To break the deadlock, government agencies and industry stakeholders are implementing incentive programs to boost trucking efficiency and accelerate cargo turnover.
FMC Adjusts Fee Structure to Encourage Off-Peak Operations
The Federal Maritime Commission (FMC) has temporarily modified the Traffic Mitigation Fee schedule at both ports. From December 1, 2021 through January 31, 2022, fees will only apply between 7:00 AM and 5:59 PM Monday through Friday. This pricing adjustment aims to incentivize trucking companies to retrieve containers during nights and weekends, thereby distributing traffic flow and improving operational efficiency.
CMA CGM Offers Cash Incentives for Faster Turnaround
French shipping giant CMA CGM has launched a financial incentive program offering $100 per container for daytime pickups and $200 for nighttime or weekend retrievals. The initiative seeks to reduce container dwell times and alleviate port congestion by accelerating cargo movement.
Root Causes: Empty Container Returns and Chassis Shortages
Despite these measures, systemic issues persist. Matt Schrap, CEO of the Harbor Trucking Association, identifies inefficient empty container returns and chassis shortages as primary bottlenecks. "Truckers frequently face denied access during scheduled appointments because empty containers can't be returned," Schrap explains. The prolonged use of chassis for storage compounds the problem.
Dwell Times Spike as Congestion Worsens
Pacific Merchant Shipping Association data reveals a dramatic increase in cargo stagnation. The percentage of containers lingering over five days jumped from 5.7% in July 2020 to 32.8% by September 2021 — clear evidence of worsening congestion.
White House Task Force Coordinates Response
The Biden administration has established the Supply Chain Disruptions Task Force to streamline trucking operations rather than simply adding drivers. Officials report a 40% reduction in docked containers over the past month following interventions by the FMC, Federal Motor Carrier Safety Administration, and private sector initiatives like CMA CGM's program.
Mixed Signals in Latest Port Data
The Marine Exchange of Southern California reports 132 vessels currently at the twin ports (74 anchored/loitering, 58 docked) — suggesting possible improvement but requiring continued monitoring.
FMC Commissioner Calls for System Overhaul
FMC Commissioner Carl W. Bentzel emphasizes that achieving 24/7 operations requires coordinated supply chain cooperation. He criticizes the fragmented appointment systems run by individual terminals, stating they undermine scheduling reliability. "We must explore how to strengthen these systems for greater efficiency," Bentzel asserts.
As multiple stakeholders implement congestion relief measures, their collective effectiveness remains to be seen. What's certain is that sustained, collaborative effort will be essential to restore fluid supply chain operations and support economic stability.