US port fees receive a 6-month reprieve
United States businesses, importers, retailers and farmers are breathing a sigh of relief as President Donald Trump's administration announced a phased-in implementation of port fees on "Chinese" vessels, starting with $0 for the first 180 days, rather than the previously announced $1 million to $1.5 million per port of call.
The fees, which initially had the potential to be cumulative, or more than $3 million for the affected ships for vessels that are made in China — or operated or owned by a company with any Chinese vessels in its fleet or on order — had drawn unprecedented outcry from the people and companies whom it would affect, since they are already facing increased costs because of tariffs.
Had the fees been issued starting Thursday, as was initially expected, experts predicted that most ships would skip smaller ports for larger ones, creating supply chain and labor issues.
“Currently, ships visit an average of three to four U.S. ports, both large and small, to move American cargo,” Nate Herman, senior vice president of policy for American Apparel & Footwear Association testified before the Office of the U.S. Trade Representative in March. "The United States has more than 300 ports — but only 10 major ports."
"If the proposed fees are implemented in every port call, shippers will likely reduce their port visits to just one U.S. port to minimize costs. As a result, calls to secondary ports would largely cease. These secondary ports would face a significant decline in business, leading to potential closures and significant job losses for American longshoremen," Herman told the USTR.
-ABC News' Soo Youn
