The U.S. Trade Representative, Jamieson Greer, announced that the U.S. Trade Representative’s Office (USTR) will listen to feedback and make reasonable adjustments to the fee plan for Chinese-made ships docking at U.S. ports.
On Tuesday, April 8th, Greer stated during a trade hearing in the U.S. Senate that the purpose of the port fee plan is to incentivize the development of the U.S. shipbuilding industry in response to the expansion of the Chinese Communist Party in this sector.
Greer mentioned that for the benefit of the domestic economy, “the fee plan will not be fully implemented, and these fees may also not be cumulative.”
Several dozen stakeholders in the shipping industry have submitted public opinions on the plan. Greer mentioned that he personally met with some of them.
He revealed that the USTR is carefully examining this feedback as well as the testimonies from the public hearing at the end of March.
Greer stated that the agency aims to “ensure that we have enough time and appropriate incentives to bring the shipbuilding industry back to the United States without affecting our economy,” but he did not provide further details on the adjustments to the plan.
Three anonymous sources told Reuters that due to the feedback received, the implementation of the USTR port fee plan may be delayed until November.
U.S. steel manufacturers and industry unions have praised the fee plan, but there are also significant opponents.
During the hearing, farmers, energy producers, chemical and construction companies, as well as domestic shipping operators testified that the plan will impose costs that could lead to bankruptcy.
Louisiana Republican Senator Bill Cassidy expressed concerns that these fees could affect the transportation of goods in the state and along the Mississippi River. He particularly mentioned that he was told if a Korean company’s fleet of 50 ships includes only 5 made in China, all 50 ships would still have to pay fees.
At the same time, domestic port operators in the U.S. cautioned that these costs could disrupt supply chains.
The World Shipping Council is a major trade association in international shipping. The council stated that these fees could impact almost all ships docking at U.S. ports, resulting in consumers bearing up to $30 billion annually in costs and potentially doubling transportation expenses for U.S. export goods.
Nevertheless, even before the implementation of the port fee plan, it has begun to affect the market, as shipping companies have nearly stopped purchasing Chinese-made bulk carriers.
According to a Bloomberg report on April 2nd, based on data from Clarkson Research Services Ltd., only 4 Chinese-made bulk carriers were sold in the second-hand market in March, the lowest sales volume since at least 2022 and about one-fifth of the monthly level from the previous year.