US exporters are facing a doubling of costs should the Trump administration proceed with plans to impose a $1.5m fee per port entry by Chinese built vessels.
After an investigation concluded China’s maritime supply chain received unfair state support, US trade representative (USTR) Jamieson Greer proposed the fees for China-built ships calling at US ports, irrespective of the flag they sail under or operator’s nationality.
World Shipping Council CEO Joe Kramek warned: “The USTR’s proposed port fees could add $600–$800 per container – which would double the cost of US exports. Container vessels servicing the US typically call at three to four US ports on each trip.”
He said the fees would “add millions in costs to each voyage, resulting in fewer US port calls, especially to small and medium-sized ports”.
And he added: “Policymakers must reconsider these damaging proposals and seek alternative solutions that support American industries.”
The proposals also include a $1m per port entry fee for vessels belonging to an operator that has a Chinese-built vessel in its fleet or orderbook, regardless of where the calling vessel was built.
But contrary to its intention, the WCS said, this would not “disincentivise current shipbuilding practices”.
Instead, it warned that 98% of the ships that called at US ports could be affected, and with container fees rising by $600-$800 per movement, it would up the cost of goods for US consumers by $30bn a year.
Noting that China builds half of the world’s box fleet, CMA CGM’s CFO, Ramon Fernandez, said the USTR move “would have a significant effect” on all carriers.
And Mr Fernandez said he had no indication whether the vessel-sharing agreement CMA CGM has with carriers, the Ocean Alliance (which also includes China’s Cosco) would be exposed to potential repercussions from the new US administration’s shifting China policy.
Last week, The Loadstar reported how the million-dollar-plus port charges would also heap further inflationary pressures onto US importers.
While Mr Trump’s government will determine whether to push ahead with proposed levies, the USTR investigation was initiated last April under his predecessor, Joe Biden.
Source: By Alexander Whiteman, The Loadstar
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