Summary
- USTR levying port fees on all foreign-built vehicle carriers
- Fees will hit vessels that support US military, sources say
- Vehicle carrier customers already hit by US auto tariffs
NEW ORLEANS, (Reuters) – Operators of hulking car carriers are seeking relief from the U.S. Trade Representative’s surprise plan to levy port fees on all foreign-built ships in that segment, including 20 vessels that guarantee transport for the U.S. military during a war or national emergency, three sources told Reuters.
USTR announced the fees on April 17 as part of an ongoing effort to hit certain China-linked ships calling at U.S. ports with fees that would fund a domestic shipbuilding revival and counter China’s dominance on the high seas.
The fees sent a shockwave through the vehicle carrier industry, because they went beyond targeting China-built and China-owned ships.
The fees on vehicle carriers are so broad that they would hit the 20 U.S.-flagged and U.S.-crewed vehicle carriers admitted to the U.S. Maritime Security Program that supports Washington’s military readiness, according to two attorneys, who requested anonymity due to fear of reprisal.
The fees also would heap massive costs on vehicle carrier customers, who have been hurt by 25% auto tariffs imposed by U.S. President Donald Trump.
The levies were not mentioned in the original USTR port fee proposal from February, so unlike operators of other vessels, vessel carriers had no opportunity to give feedback.
“The fee on the car carriers came from nowhere,” one of the attorneys said.
Both said the USTR overreached because the fees are levied on ships made in countries that were not part of the Biden administration’s fast-track investigation that found China unfairly dominates the global maritime, logistics and shipbuilding sectors.
The World Shipping Council, whose members include Swedish vehicle transporter Wallenius Wilhelmsen warned on April 18 that the fees would hit almost every car carrier and have unintended consequences.
WSC declined to comment further.
The attorneys and one industry group say they have requested meetings with USTR to discuss their concerns. USTR did not immediately comment on whether the body would meet with vessel carrier representatives.
USTR plans to charge foreign-built vehicle carriers $150 for every car the ship has capacity to carry, beginning on October 14. That fee would be $900,000 for a ship that transports 6,000 cars.
MILITARY RISK?
Vehicle carriers are vital to U.S. military readiness because they can transport large equipment such as tanks, aircraft and helicopters.
Companies with ships in the MSP include Florida-based American Roll-On, Roll-Off Carrier Group, a U.S.-flag operator of vehicle carriers that is part of Wallenius Wilhelmsen Group. New York-based Liberty Global Logistics, is another provider. Spokespeople for ARC and Liberty did not immediately respond to requests for comment, while Wallenius Wilhelmsen declined to comment.
A spokesman for Maersk Line Ltd, the U.S. arm of the Danish container shipping giant which is also part of the MSP, said it is reviewing the most recent information from USTR and preparing for a range of scenarios.
Operators of container ships, fuel tankers and other vessels in the MSP are exempt from port fees.
There are 1,466 vehicle carriers in operation, according to data from Alphaliner.
Just 39 of those ships were built in the United States, Alphaliner said.
Reporting by Lisa Baertlein Editing by Peter Graff and Mark Potter
Source: worldautoforum.com
