A coalition of retailers and industry associations in the United States has voiced opposition to the USTR’s proposal to impose substantial fees on Chinese-built ships entering US ports.
The proposal aims to counter China’s growing influence in the maritime, logistics, and shipbuilding sectors.
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Potential economic impact
The National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA), along with over 30 other organizations, have raised concerns that these fees could lead to increased costs for imports and exports.
A study commissioned by these groups suggests that the higher fees and potential mandates to use more expensive US-built ships could result in a decline in imports and exports, affecting various sectors, including retail.
The study warns that such measures could lead to reduced sales and employment in wholesale and retail trade, from stores to restaurants.
Supply chain disruptions
Retailers are particularly concerned about the port service fee, fearing it will be passed on to cargo owners, significantly increasing costs.
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By GlobalDataThere is also apprehension that carriers might alter their routes to avoid these fees, potentially bypassing smaller ports and overloading larger ones.
This shift could cause congestion and further strain supply chains already dealing with various challenges.
Calls for alternative solutions
David French, NRF’s executive vice president of government relations, acknowledged the importance of revitalizing the US shipbuilding industry but cautioned against measures that burden those who rely on it.
He urged the administration to explore other avenues to support the industry without imposing additional costs on businesses and consumers.
The debate over the proposed shipping fees highlights the complex balance between protecting domestic industries and ensuring the efficiency and affordability of global trade.
As discussions continue, stakeholders from various sectors are closely monitoring developments that could reshape the US maritime landscape.
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