AAPA Fights Against Proposed Fees on Chinese-Built Ships and Cranes

The American Association of Port Authorities (AAPA) has been at the forefront of advocating for ports in response to the U.S. Trade Representative’s proposal to add fees on Chinese-built ships, car carriers, and Chinese-manufactured port cranes. During AAPA’s testimony on May 19, CEO Cary Davis strongly opposed the idea of imposing tariffs on cranes, emphasizing that such actions would not revive the American crane manufacturing industry.

Davis highlighted the serious concerns of the industry regarding the economic consequences of the revised USTR proposal, which aims to penalize China for its control over the shipping industry through subsidies to shipbuilders and crane manufacturers. AAPA estimates that the proposed fees could cost ports nearly $7 billion.

The trade group expressed its opposition to the additional fees on Chinese-manufactured port cranes, labeling them as a tax on port development. With ZPMC dominating the market with over 70% share, port operators have limited options for sourcing cranes. AAPA called on USTR to refrain from making the fees retroactive, as it would significantly impact ongoing projects like the ones at the Port of Houston.

In addition to the crane tariffs, AAPA also voiced its concerns about the proposed fees on cars carried on foreign-built vessels, stating that such actions would harm port communities specializing in the automotive trade. The trade group questioned the authority of USTR to impose such fees and highlighted the challenges in distinguishing imports from exports on car carriers.

AAPA supported the idea of reshoring to the U.S. but emphasized the need for a more strategic approach to avoid negative impacts on ports, American industry, and consumers. The trade group also raised issues regarding the quota of exported LNG on U.S.-built vessels, deeming it infeasible and likely to cause instability.

As USTR moves closer to finalizing the fee proposal, AAPA continues to advocate for the interests of port operators and the industry as a whole. Stay tuned for further developments on this issue.