The initial proposal for $1.5m fees per port call for China-built ships faced backlash from industry leaders.
The US government has announced a revision of port fees applicable to vessels built in China, following opposition from the shipping industry.
The updated policy, released by the US Trade Representative (USTR), aims to support domestic exporters and vessel owners operating in the Great Lakes, Caribbean, and US territories.
The initial proposal, which suggested fees of up to $1.5m per port call for China-built ships, faced backlash from industry leaders concerned about the potential impact on US export prices and possibleannual import costs of $30bn on American consumers, reported Reuters.
The revised fees will be phased in over time, addressing concerns raised by various stakeholders, including domestic port operators and US shippers.
The United States Trade Representative (USTR) has exempted certain categories of vessels from the fees, including those transporting goods between domestic ports and those operating between US ports and Caribbean islands.
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American and Canadian vessels calling at Great Lakes ports will not be subject to these fees.
Crucially, empty ships arriving to load US exports, such as wheat and soybeans, are also exempt.
The new fee structure will apply to Chinese-built and owned ships, which will incur a charge of $50 per net tonne starting October 14, with annual increases of $30 for the next three years.
Non-Chinese firms operating Chinese-built vessels will face a lower fee of $18 per net tonne, with annual increases of $5.
The USTR has opted for a fee system based on net tonnage or the number of containers unloaded, rather than a flat fee, which was a concern for smaller operators.
The USTR has set a timeline for liquefied natural gas (LNG) carriers, requiring them to transport a percentage of US LNG exports on US-built vessels, with gradual increases planned through 2047.
The agency will implement the new fees within 180 days and has decided against imposing fees based on the percentage of Chinese-built ships in a fleet.
The announcement coincides with the one-year anniversary of the USTR’s investigation into China’s maritime practices, which concluded that China employs unfair policies to dominate global shipping.
Unions representing workers in the shipbuilding sector have expressed support for the revised plan, while the American Apparel & Footwear Association has raised concerns that these fees could lead to increased prices for consumers.
