US Adjusts Port Fee Plan for Chinese Vessels

US Considering Softening Proposed Fee on China-Linked Ships

The Trump administration is considering softening its proposed fee on China-linked ships visiting US ports after a flood of negative feedback from industries that said the idea could be economically devastating, according to six sources.

Changes Under Consideration

Among the changes under consideration are delayed implementation and new fee structures designed to reduce the overall cost to visiting Chinese vessels, according to the six sources with knowledge of the matter.

Industry Opposition

Representatives from numerous industries, from coal to agriculture, argued during public hearings that the fee proposal could make it impossible to ship everything from coal to soybeans to market because of the prevalence of Chinese-linked vessels in the existing global shipping fleet, and the time it would take to replace them.

Government Response

The White House and the Office of the US Trade Representative (USTR), the government department involved in the drafting the proposal, did not respond to requests for comment.

Fee Structure Options

The administration is considering charging a fee that is adjusted based on the number of Chinese-built ships in a company’s fleet, one source said. That would mean lower fees for those companies with fewer ships built in China.

The administration is also mulling a charge based on the tonnage of unloaded vessels rather than a flat fee, two of the sources said. This would mean lower fees for smaller ships, rather than flat fees for all vessels.

Impact on Shipping Industry

The USTR had formulated the fee proposal with larger container ships that transport retail goods in mind, the sources said. The impact on commodities flows had not been fully considered, they said.

China’s Response

China’s foreign ministry on Wednesday reiterated its stance on the issue, saying measures such as levying port fees would not revitalise America’s shipbuilding industry but only “harm others and itself”.

Conclusion

The Trump administration is considering softening its proposed fee on China-linked ships visiting US ports due to negative feedback from industries. The administration is considering changes to the fee structure and implementation, including delayed implementation and new fee structures designed to reduce the overall cost to visiting Chinese vessels.

FAQs

Q: What is the proposed fee on China-linked ships?

The proposed fee could top US$3 million per US port call for China-built or linked vessels.

Q: Why is the fee proposal being reconsidered?

The fee proposal has faced opposition from industries that say it could be economically devastating and make it impossible to ship certain goods to market.

Q: What changes is the administration considering?

The administration is considering delayed implementation and new fee structures designed to reduce the overall cost to visiting Chinese vessels, including charging a fee adjusted based on the number of Chinese-built ships in a company’s fleet or the tonnage of unloaded vessels.

Q: What is China’s response to the fee proposal?

China’s foreign ministry has said that measures such as levying port fees would not revitalise America’s shipbuilding industry but only “harm others and itself”.