As the U.S. begins imposing new tariffs on the global shipping market, many logistics industry stakeholders are still struggling to understand how the tariffs, and other related trade and maritime programs meant to boost U.S. industries – such as fees on “Chinese-owned” vessels or fleets – could affect their businesses.
Amid the confusion, a bipartisan group of U.S. lawmakers have teamed up to reintroduce the SHIPS for America Act, which aims to revitalize the U.S.shipbuilding and commercial maritime industries.
The proposed legislation would use any fees charged at American ports to support the rebuilding of the American maritime industry through the establishment of a Maritime Security Trust Fund.
“The Maritime Security Trust Fund would be financed by funds collected from Customs and Border Protection through duties, fees, and penalties imposed on vessels in international commerce, special tonnage taxes, light money, and penalties levied on foreign-built vessels related to the U.S. Trade Representative's Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors,” a summary of the Act shared by its bipartisan sponsors said.
The Act also said that it would impose a “new penalty on vessels which are owned or operated by a foreign entity of concern or registered to a foreign country of concern (defined as Russia, China, Iran, and North Korea), as well as vessel owners who conduct significant amounts of business with the CCP-owned China State Shipbuilding Corporation (CSSC).”
It’s not clear how or if those tonnage fees would replace the Trump administration’s proposed fees on Chinese vessels, but they would, it seems, impose some kind of new penalties on companies that brought large quantities into the country on Chinese vessels.
The Trump administration initially proposed a USD 1.5 million (EUR 1.3 million) charge for Chinese-built vessels and USD 500,000 (EUR 446,928) for vessels with Chinese-built ships in their fleets to enter American ports, though it later reversed course on the policy.
The proposal stirred confusion and fear in the logistics industry, where the lack of clarity about the policy’s roll out and uncertainty over what constituted a “Chinese-owned” vessel was provoking industry stakeholders to, Reed Smith Partner Leigh Hansson told SeafoodSource, “loo[k] for ways to map their risk now rather than wait for enforcement.”
Hansson, whose firm specializes in global regulatory enforcement, said that she had been fielding a large number of requests from clients about the issue …
