- LNG Export License Restrictions Eliminated Retroactively from April 17.
- Ethane and LPG Carriers Granted Fee Exemptions Under Long-Term Charters.
- Revised Measures Follow Industry Pushback on Punitive Shipbuilding Rules.
The United States Trade Representative (USTR) shared some important news on Friday about changes to maritime fees for foreign-built vehicle carriers and liquefied natural gas (LNG) vessels. Starting October 14, the fee for operators of foreign-built vehicle carriers will drop to $46 per net ton. This is a big cut from the $150 per net ton fee that was proposed back in April, which many in the industry found too steep. However, it’s still higher than the $14 per net ton that was suggested in June, reports Reuters.
Changes for LNG and LPG Vessels
In another update, USTR has removed a provision that allowed for the suspension of LNG export licenses if certain conditions regarding foreign-built vessels weren’t met, and this change is retroactive to April 17. They also introduced an exemption for ethane and liquefied petroleum gas (LPG) carriers that are under long-term charter agreements, meaning they won’t have to pay the new fees.
Background: Response to China’s Maritime Dominance
These fee adjustments are part of a strategy that was first proposed in February to tackle China’s increasing maritime power and to bolster U.S. shipbuilding. However, after facing pushback from the industry, the original proposals were softened, as they were seen as too harsh and potentially harmful to U.S. competitiveness. This revision comes on the heels of Beijing announcing retaliatory tariffs on U.S.-built, -flagged, or -owned vessels, following the U.S. port fees set to kick in on October 15.
New Tariffs on Cranes and Cargo Equipment
Additionally, USTR announced it will impose 100% tariffs on certain ship-to-shore cranes from China, along with other cargo-handling equipment, including intermodal chassis used for transporting containers. However, cranes that were ordered before April 17 will be exempt from these tariffs.
Exemptions for Shipping Containers
Lastly, USTR confirmed that there will be no tariffs on intermodal shipping containers, as imposing them could negatively impact domestic carriers.
Further Modifications Proposed
The agency also proposed further tariff actions, including additional duties of up to 150% on selected cargo-handling machinery such as rubber-tire gantry cranes and their components, expanding on measures introduced in April.
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Source: Reuters
