Port Houston announced that it would be imposing an "Import Dwell Fee"  from February 1 in a bid to reduce long-term dwell at one of North America's busiest ports.

The port said the US$45 fee would be charged per unit per day starting on the eighth day after the expiration of free time, as defined in Tariff No. 15 Subrule 095 and Tariff No. 14 Subrule 093.

"A Sustained Import Dwell Fee will go into effect at Port Houston on February 1, 2023, to help maintain fluidity at the Bayport and Barbours Cut Container Terminals and address long-term dwell," Port Houston said.

"This fee is in addition to the demurrage charges for loaded import containers provided for in those subrules and does not replace those charges," it added.

The port noted that containers would be on hold until all terminal fees are reconciled; payment of such fees will be the responsibility of the cargo owner.

Reducing import dwells at the port

"The Sustained Import Dwell Fee is intended to minimize long-term storage of containers on the terminals and promote fluidity of cargo movement," said Roger Guenther, executive director at Port Houston.

"We've seen during the recent increase in demand that containers sitting on terminals for an extended period of time are a challenge. We are implementing this additional tool to help optimize space at our terminals and keep goods moving to the consumers in our region who need them," Guenther added.

Port Houston said in its announcement that the Port Commission approved the new dwell fee structure to help reduce the amount of time containers sit on the terminal last October.

After making the necessary software upgrades, the Sustained Import Dwell Fee will now go into effect beginning February 1.

An Excessive Import Dwell Fee was also approved in October, which can be implemented by Port Houston's Executive Director as needed.

If implemented, it will take effect following thirty days' public notice and remain in effect for at least sixty days. It is not being implemented at this time. 

This is not the first time that an American port has implemented a similar container dwell fee. In October 2021, the Port of Los Angeles and Long Beach in California also approved a similar scheme to help unclog containers at the ports. 

But the Port of LA and Long Beach announced that they would phase out the option to collect a "Container Dwell Fee" on January 24, 2023, as congestion in the two San Pedro Bay ports continues to ease.