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California Ports to Start Fining Companies as Supply Chain Woes Continue

More than 100 ships are stuck at the port, contributing to a supply chain backlog just before the holiday season.

The Los Angeles-Long Beach ports at the center of a critical shipping backlog will begin fining shipping companies that allow their containers to overrun the ports. The harbor commissions for the two cities voted Friday to issue a “container excess dwell fee” to limit the amount of time a company can stay at the terminals. From Nov. 15, companies will be charged an extra $100 a day for each container that does not move. It’s an effort to fulfill the backlog of products stuck at the ports, which include hundreds of millions of dollars worth of toys, clothing, and electronics—all crucial for holiday shopping season. “Our objective with this program is not to generate revenue,” Los Angeles Harbor Commission President Jaime Lee said in a statement, but to instead make room for ships waiting to enter. As of Friday, more than 100 ships were stuck in various positions at the port, with none of them able to get through.