United States reverses course on proposed port fees for Chinese ships

US trade representative cites opposition by stakeholders

The container ship Cosco Auckland at Port Houston. (Photo: Jim Allen/FreightWaves)

Key Takeaways:

  • Proposed high port fees on Chinese ships using US ports will not be fully implemented.
  • The fees, intended to boost US shipbuilding, faced significant industry opposition due to potential negative impacts on shipping costs and services.
  • The US Trade Representative stated that the fees won't be cumulative.
  • Further study of the port charges is planned before a final decision by November.

The United States won’t charge Chinese ships the full slate of proposed port fees for using American ports, and those fees won’t be cumulative.

United States Trade Representative Jamieson Greer at a hearing of the Senate Finance Committee Tuesday told lawmakers that the fees, which are supposed to help jumpstart a revival of U.S. shipbuilding, prompted overwhelming opposition from across the shipping industry.

Stakeholders said port charges as high as $1.5 million per ship per call could raise container rates, snarl services and lead to ocean lines eliminating services to smaller ports. Greer said he had met with some stakeholders, Reuters reported.

“They’re not all going to be implemented. They’re not all going to be stacked,” Greer said.

The fees were proposed in February after an investigation by the USTR found China pressed unfair trade practices as it sought to dominate global container shipping and shipbuilding. 

Port charges could still be implemented by November after further study, the news service reported, quoting unidentified sources.

Find more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.