USTR Relaxes Port Fees On Non-US LNG Tankers & Car Carriers

The U.S. Trade Representative (USTR) has relaxed its proposed penalties and port fees targeting non-U.S.-built liquefied natural gas (LNG) tankers and car carriers.

In its revised proposal, USTR dropped a key LNG-related rule that would have penalised exporters for not transporting a portion of LNG on U.S.-built and U.S.-operated ships.

It also reduced port fees for foreign-built roll-on/roll-off (RoRo) car carriers and exempted vessels that are part of the U.S. Maritime Security Program (MSP) or that serve the U.S. military.

The earlier proposal had required LNG producers to ship at least 1% of their exports on U.S.-built vessels starting April 2029. The share was set to increase gradually to 15% by April 2047. The new version removes language suggesting that LNG export licenses could be suspended for not meeting these requirements.

The American Petroleum Institute approved of the revisions. Its Vice President of Natural Gas Markets, Rob Jennings, was quoted in media reports calling the update “a step in the right direction” to help U.S. LNG remain competitive in the global market.

Car carriers were also targeted by the original plan, which included a new port fee of $150 per car capacity for RoRo vessels not built in the U.S. These ships, although not built domestically, often fly the U.S. flag and are crewed by Americans. Some of them are part of the MSP, a program designed to ensure military cargo can move during emergencies.

In the revised policy, USTR reduced the car carrier fee to $14 per net ton. The agency also confirmed that MSP vessels and ships carrying U.S. government cargo would now be exempt.

One of the companies expected to benefit from the exemption is the Florida-based shipping line, American Roll-On Roll-Off Carrier Group (ARC). It operates under the U.S. flag and is part of the Norway-based Wallenius Wilhelmsen Group, though neither company provided a comment on the revisions.

The original port fee plan had raised concern because it also applied to ships built in countries that were not involved in the Biden administration’s fast-track investigation into China’s maritime practices. USTR had introduced the fees to reduce reliance on Chinese-built vessels and support the revival of U.S. shipbuilding.

However, shipping industry groups and legal experts argued that the policy overstepped, especially since it did not provide stakeholders an opportunity to submit feedback. The revised proposal now opens a comment window, giving all interested parties until July 7 to submit their input.

USTR previously exempted ships carrying U.S. exports and those operating in specific regions like the Great Lakes, Caribbean, and U.S. territories. These exemptions remain in place under the revised plan.

Reference: Reuters

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