WASHINGTON, March 24, 2025–The World Shipping Council (WSC) today expressed its support for the United States Trade Representative’s goal of building a vibrant U.S. maritime sector, while expressing its strong opposition to the proposed fee on port calls for Chinese-built vessels, and fleets that contain Chinese-built vessels or have vessels on order from China, saying it would aggravate inflation for U.S. consumers and businesses, threaten jobs, and have especially negative impacts on U.S. farmers and other exporters.
In prepared testimony for today’s USTR hearing on the proposal, WSC CEO Joe Kramek said: “WSC supports the goal of building a strong and vibrant U.S. shipbuilding and maritime sector. A strong U.S. maritime sector will have positive ripple effects across the entire maritime industry. However, WSC strongly opposes the proposals in this proceeding for port fees and for requirements to use U.S.-flagged or U.S.-built vessels.’’
“These proposals will result in increased costs for U.S. exporters and consumers as well as supply chain inefficiencies, while failing to provide China with effective incentives to alter its acts, policies, and practices,’’ Kramek added. “Economic impacts would reverberate throughout the economy, adversely impacting businesses, consumers, and especially farmers who export price-sensitive commodities.’’
The USTR has proposed a per-port-entry fee of up to $1.5 million on Chinese-built vessels, and up to $1 million per-port-entry fee on any vessel (Chinese built or non-Chinese-built) for operators that have any Chinese-built vessels in their fleet or orderbook. USTR has also proposed restricting carriage of exports from the U.S. to very small number of U.S.-flagged/U.S.-built vessels.
Kramek warned that the proposed port fees, if adopted, would “generate congestion at larger ports while reducing service at smaller ports as vessel operators minimize the number of U.S. port calls their vessels make on each route”. He noted that an average-sized (6,600 TEU) container ship whose route now includes six port calls in the U.S. would incur fees that would approximately double the combined inbound and outbound spot rates for shipping between New York and Rotterdam. WSC represents operators of more than 90 percent of the world’s container-ship capacity.
While WSC strongly supports the goal of increasing U.S. shipbuilding and maritime capacity, Kramek noted that now and for years to come, “order backlogs–especially from the military–and labor shortages constrain the ability of U.S. shipyards to take on additional orders. Likewise, a shortage of trained and certified U.S. mariners constrains the ability to reflag foreign-built vessels in the United States.’’
Kramek also noted that the port fees appear to go well beyond what the law authorizes: “Generating demand for domestic products and raising government revenue–whether to support a domestic industry or for other purposes–are not permissible bases for actions under Section 301” of the U.S. Trade Act of 1974, which was enacted for the purpose of “inducing elimination of the foreign acts, policies, and practices at issue.’’
“The Administration should work with Congress on a forward-looking strategy that is constructively designed to revitalize the U.S. maritime industry,’’ Kramek concluded. “WSC’s members have lots of expertise they are eager to contribute.’’
More information, including Kramek’s prepared testimony and other background information developed by the WSC, may be found at https://www.worldshipping.org/ustr-proposals
