Trump's Proposed Port Fees on Chinese Ships 'Threaten US Maritime Industry'

President Donald Trump's plan to revitalize the US shipbuilding industry is likely to backfire because it relies on proposed fees on China-linked vessels that will hurt domestic ship operators, seaports, exporters and jobs, industry executives said at US Trade Representative (USTR) hearings on March 24.

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LOS ANGELES/WASHINGTON - US President Donald Trump's plan to revitalize the US shipbuilding industry is likely to backfire because it relies on proposed fees on China-linked vessels that will hurt domestic ship operators, seaports, exporters and jobs, industry executives said at US Trade Representative (USTR) hearings on March 24.

At issue are proposed stacking fees on China-built vessels that could top US$3 million (S$4 million) per US port call.

The Trump administration says the fees would curb China's growing commercial and military dominance on the high seas and promote domestically built vessels. US steelworker unions, US steel producers and Democratic lawmakers support the effort, saying it will boost domestic industry.

But the idea has sent a shockwave through the domestic maritime industry because it threatens the survival of the same shipping companies and customers that would drive demand for orders from the US shipyards Mr. Trump wants to rebuild.

"National interest will not be served if the effort to boost American shipbuilding unintentionally destroys American-owned carriers," Mr. Edward Gonzalez, CEO of Florida-based Seaboard Marine, the largest US-owned international ocean cargo carrier, testified on March 24.

Like many US operators, Seaboard relies on vessels made in China. It has 16 China-built ships in its fleet of 24 vessels, said maritime data provider Alphaliner.