USTR asks comments on suspension of port fees

The Office of the U.S. Trade Representative (USTR) on Tuesday announced a public comment process on the proposed suspension of port fees on Chinese vessels.

The action first announced in April followed the results of a federal investigation that found China leveraged unfair advantages to build a dominant position in global shipping and shipbuilding. The fees went into effect Oct. 14 at the rate of approximately $50 per net ton of capacity per ship per U.S. voyage.

China retaliated with port fees on U.S.-registered ships and shipping companies that had substantial U.S. investment.

The fees — part of an initiative by the Trump administration to blunt China’s maritime dominance and revive U.S. shipbuilding — set off a scramble by carriers to shift China-built ships away from U.S. services, or to re-register vessels in other countries such as Singapore and India. Atlantic Container Line, owned by the Grimaldi Group of Italy, re-registered a vessel under the U.S. flag. Washington earlier made an exception to the fees for empty ships loading American agricultural and other bulk exports.