High Seas Showdown: U.S. Port Fees Prompt Industry Uproar

The U.S. Trade Representative's sudden implementation of port fees on foreign-built car carriers has ignited controversy among operators, affecting ships crucial to military operations. Originally aimed at China-linked vessels, the broad fees also impact U.S.-flagged carriers. The unexpected levies create financial burdens on vehicle carriers and their customers.

The U.S. Trade Representative's abrupt decision to impose port fees on all foreign-built car carriers has caused a stir across the industry, according to sources familiar with the matter. This plan includes 20 vessels vital for U.S. military transport during emergencies, reflecting broader actions against China-linked ships.

Vehicle carriers were shocked by the fees, as they extend beyond the intended scope targeting Chinese ships. The tariffs have significant implications for the 20 U.S.-flagged carriers under the Maritime Security Program (MSP), integral to military logistics, as stated by legal experts speaking under anonymity.

Unforeseen by the industry, the fees are set to significantly increase the operational costs for carriers, already burdened by previous auto tariffs. Efforts to engage with the USTR for dialogue are underway, as stakeholders seek clarity and potential revisions to the policy before it takes effect on October 14.

(With inputs from agencies.)