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Port of NY-NJ readies revised fee plan for long-dwelling empties

The Port of NY & NJ will change the method it will use to determine when to levy a $100-per-container penalty on ocean carriers who leave too many empty containers at the port. The revised tariff is expected to be published in the coming days.

The tariff has technically been in effect since September 1st. However, the PANYNJ has not yet started enforcing the new tariff. The “container imbalance fee” aims to rid the NY-NJ port region of the high number of long-dwelling empties in and around the port. The PANYNJ is hoping that the tariff will have a positive effect on truck efficiency and regional chassis supply.

Originally, ocean carriers were subject to the fee if they didn’t remove empty containers that were equal to at least 110% of the import containers that were dropped off in each calendar quarter.

Now, ocean carriers will have to remove the same number of empties as imports dropped off during each calendar quarter. Any amount of empties that remain at the port above that balance will face rising thresholds for their removal before ocean carriers get hit with the fee on the lingering containers.

The new tariff will require additional information. Ocean carriers must report their quarterly container balances directly to the port. Those numbers now reside solely with the port’s marine terminals.

Carriers have swept up 10.5% of the estimated 200,000 empty containers that have lingered across the port region since August. That has entailed ships making two calls at the NY-NJ port, cross-chartering space with rival carriers, and sending in more sweepers to take empties.

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First post-OSRA shipper invoice complaint snags Flexport

An Indiana-based furniture importer is looking to have $100,000 in detention charges voided. They claim that the invoices provided by Flexport failed to include all the data elements now required by OSRA.

The complaint is the first of its kind under OSRA-22, which was signed into law in mid-June and puts greater scrutiny on how carriers and NVOs handle billing invoices.

The company is seeking reimbursement of $56,117 and the nullification of another $49,643 in detention charges stemming from alleged incomplete invoices from Flexport. OSRA requires detention and demurrage invoices to contain 13 data elements, including the date the container is made available.

Most of the 19 invoices issued were missing several data elements. The missing elements included the date the container was made available, the allowed free time, the start of the free time, and the end of the free time.

The Indiana shipper said it tried several times to contact Flexport directly to understand the charges and resolve the issue. However, by August, Flexport had still “refused to provide further information regarding the charges in invoices 1-11 unless the shipper provided complete payment of all charges.”

The shipper paid the 11 invoices on August 22nd. Two days later, the shipper said it received eight new and incomplete invoices for additional containers for $49,643. The shipper is asking the FMC to nullify the outstanding charges.

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About O’Neill Logistics

O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.

O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.

Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.