WSC Urges Constructive Alternatives to USTR's Port Fee Plan

WSC says port fees on Chinese vessels could undermine US trade interests. File Image / Pixabay

Shipping association World Shipping Council (WSC) has raised concerns about the US Trade Representative's (USTR) newly announced port fees targeting Chinese-built and Chinese-operated vessels calling at US ports. 

These measures, announced last week, aim to counter Chinese subsidies in shipbuilding and maritime logistics.

WSC argues that these measures could do more harm than good, especially for US trade, industry and consumers, it said in an email statement on Friday.

"Unfortunately, the fee regime announced by USTR is a step in the wrong direction as it will raise prices for consumers, weaken U.S. trade and do little to revitalize the U.S. maritime industry," Joe Kramek, president and CEO of WSC, said.

A key concern is that the fees are retroactive, applying to ships already built and currently operating.

WSC asserts that this backwards-looking approach offers no incentive to build ships in the US and instead imposes unexpected costs on American exporters, including agricultural producers who depend on affordable bulk shipping.

It also undermines long-term investment planning in an industry where vessel lifespans are measured in decades.

Larger Ships Hit Hardest by USTR Port Fees

The structure of the fees, calculated based on net tonnage (NT), disproportionately penalises larger and more efficient container vessels.

These ships are vital for delivering high volumes of cargo, including components used in the US manufacturing sector.

WSC warns that increasing the cost of these shipments will ripple through supply chains, raising input costs for American businesses and prices for consumers. Ports that have invested heavily in infrastructure to handle these larger vessels could also be negatively impacted.

The shipping group adds the USTR's new fee on car carriers, based on car equivalent unit (CEU) capacity, targets mostly foreign-built vessels and could result in higher automobile prices for US buyers.

Finally, WSC has flagged legal concerns over whether the USTR's fee measures exceed the authority granted under current trade laws.

The group is urging the US administration to pursue constructive, forward-looking solutions, which include measures such as targeted incentives, streamlined regulations and infrastructure upgrades that strengthen the US maritime sector without disrupting global trade or harming domestic industries.