US port fees meant to target the Chinese maritime industry finalized by the US Trade Representative (USTR) in April are still facing backlash from market participants, even in what are supposed to be unrelated USTR proceedings.
In public comments due by 19 May that were meant to be focused on new USTR proposals for tariffs on portside cranes, many shipping firms chose instead to continue voicing concerns about the port fees, which are aimed at penalizing owners and operators of Chinese-built vessels.
Groups like the World Shipping Council (WSC) and the Chamber of Shipping of America (CSA) are asking the USTR to consider more feedback from industry before imposing the fees this fall, citing both the damage they could do to US commerce and confusion about the measures.
"The [port] fees will increase costs for US consumers and exporters and introduce supply chain inefficiencies, all while failing to incentivize China to alter its acts, policies and practices," the WSC said in comments filed with USTR on 19 May, echoing many of the concerns raised by groups earlier this year to draft versions of the port fees.
The finalized port fee plan is also unclear to many and has generated confusion in the international trade community, WSC said. The timing of the implementation for the fees is also unclear and needs to be clarified, said the CSA.
Before Monday's hearing USTR said it would not address any aspect of the new fees — just the proposed crane tariffs. There were comments filed on the crane tariff proposal, including from the operators of the Port of Freeport, Texas, who noted the US needs significant time to develop its own domestic crane manufacturing industry.
But many of the comments continued to address what appear to be finalized fees, set to go into effect in October.
In one comment, food industry trade group The Meat Institute, said the finalized fees were an improvement over the earlier proposals, but they would still be costly to US businesses and consumers.
The new fees "... would still impose punitive fees that will be passed directly to the American companies exporting perishable meat and poultry products, and ultimately spread across actors along the supply chain, including American consumers who will see prices on food to finished goods increase at a time when the Administration is working diligently to combat stubborn inflation," the Meat Institute said in its comments.
