Executive Order allows trade officials to pursue fees on China-built ships; potential impact on Bermuda remains unclear
Photos: Bermuda Container Line’s MV Oleander, built in China (file); US President Donald Trump signs Executive Order (CBS)
Under initial proposals, which sent shockwaves through Bermuda, Chinese-built vessels entering a U.S. Port – which would have included Bermuda’s MV Oleander – might have faced massive new port fees. But a new Executive Order does not make specific reference to fees on Chinese-made ships.
U.S. President Donald Trump has signed an Executive Order to ‘restore America’s maritime dominance’.
The wide-reaching document directs U.S. Government officials to deliver a Maritime Action Plan within 210 days, identify key components for rebuilding and expanding the U.S. maritime industry, enforce the collection of fees for harbour maintenance, and make a proposal to incentivize shipbuilding in the U.S..
The Order also directs the United States Trade Representative to coordinate with appropriate agencies to support and enforce actions, if any are taken, in connection with the USTR’s investigation into China’s targeting of the Maritime, Logistics, and Shipbuilding Sectors.
One of the USTR’s proposed actions is an up-to $1.5-million entry fee for any Chinese-built vessel entering a US Port, which would have included Bermuda’s MV Oleander.
However, Reuters reported this week that such fees may be softened, with lower fees for smaller ships – such as those serving Bermuda.
The Executive Order also directs the USTR to consider tariffs on Chinese-built ship-to-shore cranes and other cargo handling equipment – another manufacturing area dominated by China.
A Bermuda industry insider told Bermuda Broadcasting that the absence of language in the Executive Order that directly targets China-made vessels “gives me hope that the U.S. is pivoting away from the initially proposed fee structure…”
“Either way the can has been kicked 90-180 days, depending on how you read this.”
