The World Shipping Council has opposed a U.S. proposal to impose port fees on Chinese-made ships, warning that it would lead to inflation, job losses and hurt U.S. exporters.

Citing the economic impact, WSC opposes the United States Trade Representative's proposed imposition of port fees on Chinese-made ships

The World Shipping Council (WSC) has expressed strong opposition to a proposal by the United States Trade Representative (USTR) to impose port charges on Chinese-made ships. The WSC, while supporting the goal of a more robust U.S. maritime industry, warned that the fees could fuel inflation and hurt U.S. businesses, especially affecting exporters, including farmers.

Testifying at a hearing at the Office of the United States Trade Representative, WSC CEO Joe Kramaker stressed the unintended consequences of imposing port entry fees of up to $1.5 million for Chinese-made vessels and up to $1 million for vessels with Chinese-made vessels in their fleet or on their orders. The proposal would also limit the use of U.S.-flagged vessels for exports.

Kramaker warned that the fees would lead to port congestion and reduce service at smaller ports as shipping companies minimize calls to U.S. ports. He noted that higher costs could significantly raise freight rates for U.S. exporters and consumers, especially for price-sensitive commodities.

While WSC supports increasing U.S. Marine and shipbuilding capacity, Kramek noted that the current lack of capacity, order backlogs and labor shortages will make it difficult for U.S. shipyards to absorb additional orders. In addition, a shortage of trained American seafarers limited the ability to refly the flag on foreign-built ships.

Kramaker argued that the proposed fees may exceed what is allowed under Section 301 of the 1974 U.S. Trade Act, which is designed to solve foreign trade problems rather than generate revenue for domestic industries.

He concluded by urging the administration to work with Congress on a forward-looking strategy to revitalize the U.S. maritime industry, and WSC members stand ready to contribute their expertise.