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Chinese ship fees disproportionally impact agriculture

The Agriculture Transportation Coalition’s Executive Director says a proposal by the U.S. Trade Representative’s Office would be devastating for exports.

Peter Friedman calls proposed penalties under the Trade Act an effort by labor unions to resurrect U.S. shipbuilding, which he says has been obsolete for three decades.

“The proposal under 301 would be to impose a fine of up to a million and a half dollars for each port call by a ship that was built in China or which is just owned by a Chinese company,” he says.

The fees would also be applied to any ship that’s owned by a fleet which also includes Chinese-owned ships. And, Friedmann says….

“It states that effective in a couple, three years, certain percentages of US exports must be carried on U.S. manned or U.S. flagship and U.S. built ships, of which today there are none that serve international commerce.”

Chinese firms control 95 percent of global maritime container inventory production today.

The American Farm Bureau Federation estimates bulk ag exporters could face up to $930 million in additional annual transportation costs if imposed.

The National Feed and Grain Association, the Andersons, and other ag groups are asking USTR to exempt vessels calling on ports for ag exports.

Friedmann spoke during a webinar hosted by the National Agricultural Law Center and Agri-Pulse as part of National Agriculture Trade Day.