US Port of Long Beach and terminal operator Total Terminals International (TTI) plan to bring in a container ship to remove up to 4,300 empties in an effort to clear a backlog of empty Hanjin Shipping cargo containers from Southern California.
The parties would secure an empty vessel to reposition the containers, a solution that will help move empty containers back to Asia.
The empty container ship is expected to arrive in Long Beach in the coming week; however, the benefit will be felt throughout the region immediately.
“We expect that as many as 3,000 containers will literally be taken off the street and shipped back to Asia, with another 1,300 being removed from the Port, putting thousands of chassis back to work,” Noel Hacegaba, Managing Director of Commercial Operations and Chief Commercial Officer for the Port of Long Beach, said.
TTI is loading the ship at cost while the Port of Long Beach will waive its fee for access to the port’s terminal.
The South Korean shipping company’ filing for court receivership in late August resulted in a significant buildup of empty containers across Southern California, tying up the chassis they rest on.
“The Port of Long Beach recognized the urgency to alleviate the shortage created by the estimated 6,000 Hanjin-leased containers sitting on chassis which are needed throughout Southern California to move goods in and out of the region,” Lori Ann Guzmán, President of the Board of Harbor Commissioners, said, adding that the port and TTI have been working with other supply chain partners “to find creative solutions to solve the chassis shortage.”
The parties said that TTI Long Beach will be receiving specific Hanjin-leased empty containers authorized by leasing companies Triton, Textainer, Seacube and Florens.