World Shipping Council calls for constructive resolution following USTR port charges announcement

The World Shipping Council (WSC) on April 18, 2025 in Washington expressed deep concerns about the new port charge policy announced by the Office of the United States Trade Representative (USTR), warning that the measures could undermine U.S. trade, harm domestic manufacturers, and undermine efforts to strengthen the nation's maritime industry.

“Revitalizing America’s maritime sector is an important and widely shared goal — one that requires a long-term, legislative and industrial strategy. We welcomed the vision outlined in the President’s Executive Order, which proposes targeted initiatives to strengthen U.S. shipbuilding, ports, and supply chain resilience. Unfortunately, the fee regime announced by USTR is a step in the wrong direction as it will raise prices for consumers, weaken U.S. trade and do little to revitalize the U.S. maritime industry,” said Joe Kramek, President and CEO of WSC.

Key Concerns About USTR’s Port Charges Policy

The WSC identified several serious problems with the new policy:

• Retroactive port charges: Imposing charges on vessels already at sea does nothing to help the U.S. shipbuilding industry and instead hurts U.S. exporters — especially farmers — at a time when global trade is under pressure. These retroactive charges disrupt long-term investment plans, add costs, and create uncertainty for U.S. businesses and consumers.

• Net Tonnage (NT) Charges: Charging based on ship size would impose higher charges on large, efficient vessels — which are essential for transporting goods, including components for domestic production chains. Nearly half of all container ship imports into the U.S. go directly to domestic production. The increase in shipping costs will have a ripple effect throughout the supply chain, raising product prices and causing difficulties for businesses and consumers. At the same time, US seaports – which have invested heavily to accommodate large container ships – will also be negatively affected.

• Car carrier fees: The new USTR policy also includes a “Car Equivalent Unit – CEU” fee applied to most car carriers in the world – an arbitrary action that targets all foreign ships. This measure will slow US economic growth, increase car prices, while not actually promoting domestic maritime investment.

• Legal and strategic concerns: WSC also points out that the proposed fees may exceed the authority granted under current US trade law.

Calling for Constructive Solutions

WSC reaffirms its commitment to working closely with government and industry stakeholders to develop real solutions that strengthen the U.S. maritime industry. Constructive approaches such as targeted investment incentives, infrastructure upgrades, and regulatory simplification can deliver long-term benefits without disrupting commerce or increasing costs for U.S. manufacturers and consumers.

It is also important to note that the U.S. domestic shipbuilding industry currently faces significant barriers including a defense backlog, a skilled labor shortage, and limited capacity to operate U.S.-flagged vessels — even with an improved regulatory environment.

WSC members are proud to be important contributors to the U.S. economy and maritime community. Liner shipping accounts for 65 percent of all U.S. seaborne trade, contributing more than $2 trillion to the economy each year and supporting 6.4 million jobs with a combined payroll of more than $420 billion. Additionally, WSC members own 75 percent of the vessels participating in the U.S. Maritime Security Program and have significant shipbuilding experience.

“The World Shipping Council remains fully committed to supporting U.S. efforts to revitalize the American maritime industry,” Kramek concluded. “We urge policymakers to pursue strategies that encourage growth, strengthen supply chain resilience, and avoid actions that risk harming American exporters, producers, and consumers at a time when global trade is already under pressure.”

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Source: Phaata.com (According to AllAboutShipping.co.uk)

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