Shipping Fee Hike May Threaten American Ag Exports

Proposed port fees for China-built vessels have implications for American agriculture. “One proposal by the Office of the U.S. Trade Representative relates to fees that would be imposed on any kind of shipment coming into the United States, whether the ship was built in China or whether it’s a company that has a significant portion of their ships that were manufactured in China,” said Mike Steenhoek, executive director, Soy Transportation Coalition. “These fees can range from as little as $500,000 upwards to $1.5 million, but that entire range is really a significant cost increase on products coming into the United States and then those costs would certainly be passed on to exports as well.” The second proposed USTR action calls for the use of U.S. ships with U.S.-based crews. Steenhoek said the intent may be right, but he wonders just how practical and timely this stipulation could be.