Trump's shipbuilding plan could upend ocean cargo industry, companies warn

Lisa Baertlein - Reuters - 08/03
The levies could hit virtually every ship calling at U.S. ports, foist up to $30 billion of annual costs on American consumers and double the cost of shipping U.S. exports,
  • Fees could backfire by swamping major U.S. seaports, imperiling exports and sticking everyday Americans with higher prices
  • MSC, the biggest container carrier, says it could skip small U.S. ports to reduce fees
  • World Shipping Council calls on U.S. to reconsider plan
LOS ANGELES, March 7 (Reuters) - President Donald Trump's plan to revitalize the U.S. shipping industry could heap massive costs on ocean transport operators and spawn a new round of supply chain chaos around the world, executives told Reuters.
Trump's administration aims to pay for an American shipbuilding comeback with help from potentially hefty port fees on Chinese-built vessels as well as ships from fleets with China-made vessels, according to a draft executive order seen by Reuters on Thursday.
The levies could hit virtually every ship calling at U.S. ports, foist up to $30 billion of annual costs on American consumers and double the cost of shipping U.S. exports, according to the World Shipping Council (WSC), which represents the liner shipping industry.
"Policymakers must reconsider these damaging proposals and seek alternative solutions that support American industries," WSC CEO Joe Kramek said.
While the stated goal of Trump's plan is to revive the moribund U.S. shipbuilding industry and weaken China's global shipping dominance, the dour outlook from industry executives shows how Trump's pro-U.S. policies can sometimes bring on unintended consequences that run counter to his stated goals.
The plan is a "curve b...
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