- Vehicle Shipping Sector Engages USTR on Revised Port Fee Policy.
- US Port Fee Plan Prompts Discussions with Vehicle Carrier Industry.
- Military-Ready Vehicle Carriers Seek Relief from New US Fees.
On April 17, the U.S. Trade Representative (USTR) revealed new port charges as part of the efforts to finance a revival of domestic ship construction and enhance U.S. maritime competitiveness. The proposal will provide financing for new initiatives while addressing China’s presence in the global shipping industry, reports Reuters.
Impact on Military-Ready Vessels
Under the new port fees, the 20 vehicle carriers that are members of the U.S. Maritime Security Program (MSP), which guarantees the availability of commercial ships for defense purposes in cases of national emergency, would be impacted, two lawyers who know about the case said.
The lawyers, who spoke on condition of anonymity, said the effect would be huge. One of them said, “The fee on the car carriers came from nowhere.”
Scope of the New Port Fees
Unlike other industries that had the opportunity to offer comments after the initial USTR port fee proposal in February, the vehicle carrier industry was not part of the previous draft. Therefore, operators could not make comments before the announcement. Both lawyers explained that the fees exceed the scope of the initial investigation, applying to vessels manufactured in nations beyond the Biden administration’s review focus.
The World Shipping Council (WSC), which has large carriers such as Sweden’s Wallenius Wilhelmsen among its membership, cautioned April 18 that the sweeping imposition of the fees would hit nearly every car carrier and may have unforeseen repercussions. WSC refused to comment beyond that.
Meetings in the Works
Lawyers and industry representatives have asked for meetings with USTR to consider possible changes. USTR has not yet addressed whether any meetings will be arranged, as of yet.
Fee Structure and Possible Consequences
In the plan, USTR will charge a fee of $150 per car that a ship can haul beginning October 14. For a ship with a capacity of 6,000 cars, this would be $900,000 per call. Vehicle carriers play a significant role in U.S. military readiness, offering the capacity to move heavy military equipment like tanks, helicopters, and aircraft.
- Ship operating companies in the MSP are:
- American Roll-On, Roll-Off Carrier Group (ARC), a Florida-based U.S.-flag carrier and
- Wallenius Wilhelmsen Group member.
- Liberty Global Logistics, New York-based.
- Maersk Line Ltd, the U.S. subsidiary of Danish shipping behemoth Maersk.
Spokespeople for ARC and Liberty did not immediately respond to requests for comment. Wallenius Wilhelmsen also declined to comment. A Maersk Line Ltd spokesman stated the company “is reviewing the most recent information from USTR and preparing for a range of scenarios.”
Exemptions for Other Vessels
It is important to note that other vessels in the MSP fleet, including container ships and fuel tankers, are exempt from the new port fees
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Source: Reuters
