US announces shipping fee plan to counter China's maritime dominance

Following a year-long Section 301 investigation, the USTR will implement the measures in two phases.

For the first 180 days the applicable fees will be set at $0. In the first phase, after 180 days, fees will be imposed on vessel owners and operators of China based on net tonnage per US voyage, increasing incrementally over the following years, and fees will be imposed on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years.

The second phase actions will not take place for three years. To incentivise US-built liquified natural gas vessels, limited restrictions on transporting LNG via foreign vessels will be imposed. These restrictions will increase incrementally over 22 years.

In addition, USTR is seeking public comments on the proposed tariffs on ship-to-shore cranes and other cargo handling equipment, in line with the President’s Maritime Executive Order.

"The administration’s response to China's unfair maritime industry practices will not revitalise the American shipbuilding industry; it will, however, impose serious new costs on American businesses and consumers,” US Chamber of Commerce executive vice president and chief policy officer Neil Bradley said in a statement.

“Successfully addressing China’s increasing maritime influence, a goal we share with the administration, requires a comprehensive approach that includes Congressional action to support domestic shipbuilding as well as coordination with our allies. What won’t solve this problem is new tariffs that only increase prices for Americans,” he added.

Fibre2Fashion News Desk (DS)