The World Shipping Council is calling on the US Trade Representative to dispense with retroactive port charges. There are more effective alternatives, it says.
The Trump administration had announced its intention to levy additional port charges on ships that are Chinese-owned or built in China. This would affect a large part of the global fleet.
The World Shipping Council (WSC) expresses understanding for the US government’s plan to boost the domestic maritime sector. However, the international liner shipping association is strictly opposed to the proposed fees.
A hearing on the plan is scheduled for Tuesday (25 March), in Washington. “These proposals will lead to higher costs for US exporters and consumers and inefficiencies in the supply chain without providing effective incentives for China to change its actions, policies and practices,” said Joe Kramek, CEO of the WSC.
WSC represents 90% of global container ship capacity
The US Trade Representative had proposed a port fee of up to $1.5 million for vessels built in China and a port fee of up to $1 million for each vessel in each fleet if they include vessels built or ordered in China.
Kramek warns that the proposed port fees would “lead to congestion at larger ports” while reducing service at smaller ports, as shipping lines could drastically cut back on the number of U.S. port calls. He pointed out that for a medium-sized container ship (6,600 TEU), six port calls in the USA would roughly double the cost of transportation between New York and Rotterdam.
The WSC represents shipping companies with more than 90% of global container ship capacity.
