On October 10, the United States Trade Representative's office announced that it will change some fees related to ships built outside the country. This update comes ahead of new port fees for vessels linked to China, which are set to start next week.
The USTR stated that starting October 14, the fee for foreign-built vehicle carriers will be $46 per net ton. This is a significant decrease from the initially proposed fee of $150 per net ton in April, which many in the industry considered too high. However, it's higher than the adjusted fee of $14 per net ton that was suggested in June.
Additionally, USTR will remove a rule that allowed the suspension of liquefied natural gas (LNG) export licenses if certain requirements regarding foreign-built vessels were not met. The office also exempted some ethane and liquefied petroleum gas (LPG) carriers from these fees if they are under long-term charter contracts.
These actions were proposed back in February to address China’s growing control over maritime activities and to support U.S. shipbuilding. However, the original proposals faced strong pushback from the industry, which claimed they were overly harsh and could hinder a revival in U.S. shipbuilding.
This announcement coincided with China's response to U.S. port fees that will take effect for ships built, owned, or operated by Chinese entities. China plans to implement fees on U.S.-built or flagged ships, as well as those owned by companies with significant U.S. investment.
Regarding crane and cargo equipment tariffs, the USTR announced it will impose 100% tariffs on specific ship-to-shore cranes from China and cargo-handling equipment, including intermodal chassis used for truck transport. However, they clarified that no tariffs will be imposed on ship-to-shore cranes ordered before April 17.
Furthermore, the USTR decided against imposing duties on intermodal shipping containers due to concerns about their effect on domestic carriers. There are also plans for additional tariffs of up to 150% on certain cargo-handling equipment, including rubber-tire gantry cranes and their components.
(Reporting by Lisa Baertlein in Los Angeles and David Lawder in Washington; Editing by Tom Hogue)