Lower fees for smaller cargo ships are being considered
Photos: US President Donald Trump (CBS); the previous Oleander vessel at Hamilton Docks in 2018 (Polaris)
Proposed US port fees may be softened, with lower fees for smaller ships – which would include Bermuda’s cargo ships.
The original proposed US trade policies under Donald Trump would have added an up-to $1.5-million entry fee for any Chinese-built vessel entering a US Port, such as Bermuda’s MV Oleander.
Today, Reuters is reporting that according to their sources, the Trump administration is considering softening its proposed fees, after a flood of negative feedback from industries that said the idea could be economically devastating.
A charge based on the tonnage of unloaded vessels rather than a flat fee is being considered, sources told Reuters, which could ease the burden on ship owners with smaller vessels.
The original proposals from the United States Trade Representative followed an investigation that determined China had unreasonably targeted the maritime, logistics and shipbuilding sectors. Million-dollar fees on Chinese shipping companies and China-built ships were then proposed.
Sources told Reuters that the USTR had formulated the fee proposal with larger container ships in mind. The impact on commodities flows had not been fully considered, they said.
John Wight, Chairman of Bermuda Container Line, was among global industry stakeholders who attended public hearings in the US in March.
He told told USTR officials that BCL would be forced to terminate business operations if the port fees were implemented as written, and it would triple current shipping costs for their customers.
Following today’s report that the proposed fees may be softened, a BCL spokesperson told us, “While we are very encouraged by the possibility of the softening of the proposed port fees, we continue to explore all possible contingency options in preparation for the final outcome, which we hope will have minimal impact on our service.”
Delayed Implementation?
On Tuesday, U.S. Trade Representative Jamieson Greer told a U.S. Senate Finance Committee hearing that not all of the agency’s proposed fees for Chinese-built ships to dock at U.S. ports will be implemented, and they may not be cumulative.
Sources also told Reuters that the implementation of the new fee structures may be delayed.
Reuters state that the White House and the USTR did not respond to requests for comment.
