The World Shipping Council (WSC) strongly opposes the USTR’s proposal to impose fees on port calls for Chinese-built vessels, as well as vessels containing Chinese-built ships or those with orders from China, according to WSC's release.
WSC argues that such fees would raise inflation, threaten U.S. jobs, and negatively impact U.S. exporters, especially farmers.
In prepared testimony, WSC CEO Joe Kramek stated, “A strong U.S. maritime sector will have positive ripple effects across the entire maritime industry. However, WSC strongly opposes the proposals in this proceeding for port fees and for requirements to use U.S.-flagged or U.S.-built vessels.”
Kramek emphasized that the port fees could drive up costs for U.S. consumers and exporters, as well as create inefficiencies in the supply chain.
The proposed port fees could reach up to $1.5 million per port entry for Chinese-built vessels and $1 million for any vessel with Chinese-built vessels in its fleet or order book.
Additionally, the USTR has suggested limiting exports to only a few U.S.-flagged or U.S.-built vessels. WSC warns that these changes would cause congestion at larger ports and reduce service at smaller ports.
A typical 6,600 TEU container ship could face doubled shipping rates between New York and Rotterdam due to these fees.
While the WSC supports efforts to boost U.S. shipbuilding, it points out that current shipyard backlogs and labor shortages will limit the U.S. industry’s ability to meet such demands.
Furthermore, WSC argues that the proposed port fees may exceed what is permissible under Section 301 of the U.S. Trade Act of 1974, which aims to eliminate foreign trade practices, not generate revenue.
Kramek concluded that the administration should work with Congress on a strategy to revitalize U.S. maritime capacity, leveraging the expertise of WSC members.
World Shipping Council (WSC) is a non-profit trade association representing liner shipping operators, WSC is involved in shaping policies for a sustainable, secure, and safe maritime industry. Members operate 75% of the U.S. Maritime Security Program Fleet and two-thirds of the active U.S.-built liner vessels. They are also responsible for all liner vessels on order in U.S. shipyards.