Port fee pause will cover foreign-built vehicle carriers, USTR confirms

Port fee pause will cover foreign-built vehicle carriers, USTR confirms

US port fees will be suspended for ships and operators covered by Annex I, II and III, and duties will be paused for Chinese-built cranes and equipment under Annex V

by Lloyd's List


THE US Trade Representative has confirmed that foreign-built vehicle carriers are included in the one-year suspension of port fees that begins on November 10, in addition to Chinese-owned, -operated and -built tonnage.

 

Foreign-built vehicle carriers have been charged $46 per net tonne since October 14, which can equate to over $1m per call for larger vessels.

 

It had previously been unclear whether these fees would be paused, given that the suspension was part of the US-China trade deal, and most vehicle carriers calling in the US are not Chinese-owned, -operated or -built.

 

Wallenius Wilhelmsen chief executive Lasse Kristoffersen said on a conference call on Wednesday that his company assumed vehicle carriers would continue to be charged.

 

Kristoffersen and other vehicle carrier executives can now breathe a sigh of relief.

 

“During the suspension period, no party would accrue liability for or be required to pay the fees on maritime transport services under Annex I, II or III,” said the USTR on Thursday.

 

Annex I covers fees for Chinese-owned and -operated ships, Annex II covers Chinese-built ships, and Annex III covers foreign-built vehicle carriers.

 

Annex IV requires US liquefied natural gas exporters to transport a portion of their cargoes on US tonnage. It is designed to incentivise US construction of LNG carriers.

 

The USTR did not mention Annex IV in its new notice. However, the first requirement of Annex IV — for 1% of LNG exports to be shipped aboard US-flagged and -operated ships — does not kick in until 2027, after the one-year pause.

 

Annex V applies duties to imports of Chinese-built ship-to-shore cranes, chassis and chassis parts. These will be suspended for one year, the USTR said on Thursday.

 

However, the USTR specifically referred to Annex V part A. It made no mention of suspending duties under Annex V part B.

 

Annex V part B was announced on October 16, and proposes levies on Chinese-built rubber-tyre gantry cranes, rail-mounted gantry cranes, automatic stacking cranes, reach stackers, straddle carriers, terminal tractors, top loaders and components of these equipment types.

 

This proposal has not yet reached a determination of action. The comment period on Annex V part B closes on November 10, implying that the USTR could choose to pause those levies at that time.

 

The new USTR announcements were included in a request for written comments on the proposed one-year suspension of port fees. The industry has a very short window to respond: the comment period opened at noon on Thursday and closes at 5pm on Friday.

Source: Lloyd's List, Lloyd's List