Container Volume Hits Record! Imposing Import Demurrage Charges from December 1
Container Volume Hits Record! Imposing Import Demurrage Charges from December 1
The Port of Houston, a major container port in the Eastern United States, has announced the implementation of an import container demurrage charge for shippers from December 1, 2022, to improve the speed of cargo movement and also authorized an optional excess import demurrage charge. This will apply to the Barbours Cut Terminal and the Bayport Container Terminal.
Located on the northwest shore of Galveston on the Gulf of Mexico, the Port of Houston is the largest city in Texas, the second largest energy and commerce port in the United States and the sixth largest in the world. More than 7,000 merchant ships dock at the Port of Houston each year.
According to the Port of Houston, container volumes at the port have reached record levels in recent months. The implementation of this new tariff is aimed at improving the movement of cargo to alleviate the problem of prolonged hold-ups of import containers.
In August, the container throughput at the Port of Houston reached a record 382,842 TEU, a 20 percent increase over the same month last year, making it the busiest month in the port's history, according to the data. In September, container throughput at the Port of Houston increased 26 percent over the same month last year to 353,525 TEU, which was the second highest month ever for the Port of Houston, second only to August 2022. On the whole, the container throughput at the Port of Houston Container Terminal increased by 18% year-on-year to nearly 3 million TEUs.
The Port stated that maintaining efficient loading and unloading at Bayport, Barbours Cut and dwell terminals has become a new challenge due to the increasing volume of containers in preparation for the peak season. On average, duration of stay for import cargo ships have doubled to six days, compared to just two or three days in the past off season.
Roger Guenther, executive director of the Port of Houston, noted that the Port has evaluated several options available to improve the movement of cargo at the Port of Houston and has come to a conclusion. The demurrage charge, which is in the interest of all supply chain stakeholders, will reduce container detention time and ensure efficient port operations.
Amendments to Tariff Nos.14 and 15 regarding the start of free time for export warehousing, import warehousing and rail warehousing were also approved at the Committee Meeting held on October 27. The Port Committee also approved an infrastructure investment of more than $52 million, including up to $42 million in funding to the US Army Corps of Engineers to support the design and construction of the Houston Ship Channel Expansion Project 11 in FY2023. Additionally, it also approved a $7 million contract with Rigid Constructors, LLC for the construction of a 48,560 sq.m. temporary container storage facility expansion to redevelop the west end of the Barbours Cut terminal.
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