In a formal letter to the United States Trade Representative (USTR), AMCHAMDR expressed its concern regarding service charges for Chinese vessel operators of up to $1 million per port call at U.S. ports, as well as charges for shipping companies using Chinese-built vessels of up to $1.5 million per port call. The union noted that these charges would have a significant impact on trade between the Dominican Republic and the United States and other economies in the region, as the transportation market lacks vessels capable of providing shipping services to replace the vessels impacted by these measures.
Last month, the United States Trade Representative (USTR) proposed various port service charges, of up to $1.4 million to $1.5 million per vessel, for Chinese-built vessels operated by Chinese operators, depending on the composition of their fleets or prospective orders for Chinese vessels. These charges, it said, would help remedy unfair practices used by China to become a dominant player in the shipbuilding and maritime industries. The proposed measures are part of an investigation into those practices launched last year by USTR under Section 301 of the 1974 Trade Act, following a petition filed by several major U.S. labor unions.
The main concern articulated by AMCHAMDR is that smaller economies like the Dominican Republic will be at a competitive disadvantage compared to larger economies with the capacity to be served by larger vessels. Imports arriving on large vessels to the U.S. from Asia with more than 10,000 containers could have an incremental cost of approximately $$100–$$150 per container, while smaller vessels of the type serving the Dominican Republic and other countries in the region (200–1,000 containers) could be impacted by up to an additional $$7,500 per container. In addition to the impact on shipping companies serving the region, these measures would have a counterproductive effect on the competitiveness of U.S. producers who market their goods throughout Central America and the Caribbean.
While we at AMCHAMDR support the long-term goal of strengthening the U.S. shipbuilding industry, in the short term these port service fees would have a very negative impact on many of our members, including shipping lines, ports, U.S. companies operating in the Dominican Republic, and importers of U.S. products such as oil, LNG, coal, machinery, and agricultural products. We hope that USTR will consider short- and long-term alternatives to the proposed service fees and origin-based export thresholds in a manner that does not negatively impact U.S. exports, U.S. shippers, and U.S. companies operating in the Dominican Republic.
