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The World Shipping Council is against the proposed fee on port calls for Chinese-built vessels
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The WSC said this would only worsen inflation for US consumers and businesses, threaten jobs, and have a negative impact on American farmers
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The Trump administration was advised to work with Congress on a forward-looking strategy that is constructively designed to revitalize the US maritime industry
The World Shipping Council (WSC) is against the proposed fee on port calls for Chinese-built vessels as well as requirements to use US-flagged or US-built vessels, saying these would result in higher costs for US consumers and businesses, threaten jobs, and have a negative impact on American farmers and other exporters.
In a statement, WSC said the proposals would cause supply chain inefficiencies at the same time fail to provide China with effective incentives “to alter its acts, policies, and practices.”
In a testimony before the United States Trade Representative (USTR), WSC CEO Joe Kramek said the “WSC supports the goal of building a strong and vibrant US shipbuilding and maritime sector” but that the economic impacts of the proposals “would reverberate throughout the economy, adversely impacting businesses, consumers, and especially farmers who export price-sensitive commodities.”
He advised the Trump administration to work with Congress on a forward-looking strategy that is constructively designed to revitalize the US maritime industry.
The USTR proposes a per-port-entry fee of up to $1.5 million on Chinese-built vessels, and up to $1 million per-port-entry fee on any vessel, whether Chinese built or not, for operators that have Chinese-built ships in their fleet or orderbook.
The USTR has also proposed restricting carriage of exports from the US to a very small number of US-flagged or built vessels.
If adopted, the proposed port fees would generate congestion at larger ports while cutting service at smaller ports as vessel operators minimize the number of US port calls their vessels make on each route, Kramek warned.
While the WSC supports the goal of heightened shipbuilding and maritime capacity, order backlogs – especially from the military – and labor shortages hamper the ability of US shipyards to take more orders, he added.
A shortage of trained and certified US mariners also blocks the ability to reflag foreign-built vessels in the US.
Kramek said the proposed port fees go beyond what the law allows.
He said generating demand for domestic products and raising government revenue to support a domestic industry “are not permissible bases for actions” under Section 301 of the US Trade Act of 1974.
He said WSC’s members have substantial expertise to contribute in solving the port fees issue.
The WSC represents operators of more than 90% of the world’s container-ship capacity.
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