United States proposes new shipping fees
The United States redefines its maritime policy with direct implications on global trade, logistics costs and industrial exports.
America’s Maritime Action Plan is a comprehensive strategy put forward by the Donald Trump administration with the goal of regaining the nation’s maritime dominance, revitalizing its shipyards and strengthening national and economic security.
Below we review the plan, focusing on the points we consider most strategic for the amec community.
The strategy is built around four pillars: rebuilding shipbuilding capacity, boosting training, protecting the maritime industrial sector and strengthening national security. Each of them contains specific measures that will directly or indirectly affect international trade and the logistics costs of exporting companies.
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Reconstruction of shipbuilding capacity
This pillar seeks to increase ship production in domestic shipyards. To achieve this, the plan proposes major investments in port infrastructure and shipyards, including the modernization of dry docks and cranes, as well as the creation of Maritime Prosperity Zones to attract private capital to coastal communities and maritime industries.
The most relevant measure from the standpoint of international trade is the establishment of a universal tax on foreign-built commercial vessels docking at U.S. ports. This measure seeks to ensure that vessels benefiting from access to the U.S. market contribute directly to the revitalization of the country’s maritime capacity.
> Identified risks: Sources warn that this measure could raise import costs for consumers and businesses, disrupt global trade routes and provoke trade retaliation from other countries, as has happened in the past with China.
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Maritime Industrial Base Protection
This axis focuses on ensuring that trade and government procurement supports local industry. The goal is to ensure stable demand for U.S.-flagged, U.S.-crewed and U.S.-built vessels, reducing dependence on foreign fleets.
To this end, the plan calls for strengthening cargo preference requirements by requiring that a greater percentage of government and commercial goods be transported on U.S.-flagged vessels.
> U.S. Maritime Preference Requirement: it is proposed to require economies with high export volumes to carry a gradually increasing percentage of their containerized cargo to the U.S. on qualified U.S. vessels.
> Government cargo: the plan seeks to increase the current percentage – which is 50% – of civilian government agency cargo that must be carried on U.S.-flagged vessels.
> Land Port Maintenance Tax to balance the costs between maritime imports and those arriving by land. This initiative arises to correct a competitive disparity between the different routes of entry of goods into the country.
Currently, the lack of a fee at land ports equivalent to the Harbor Maintenance Tax (HMT) paid by seaports incentivizes shippers to divert cargo to land borders, which hurts the competitiveness of U.S. seaports.
As a solution, a 0.125% tax would be levied on the value of goods entering through land ports.
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Implications for the amec community
The risk is not immediate, but it must be monitored now.
The MAP is in the proposal phase and some of its mechanisms (especially the per kilogram rate) have yet to go through regulatory processes. However, the policy direction is clear and the speed of implementation by the Trump administration has proven to be faster than expected. The mistake would be to wait until it is final to react.
Specific risks to be monitored
The most tangible in the short term is the increase in the cost of ocean freight to the U.S. If the rate of $0.01 to $0.25/kg is applied to foreign cargo ships, the impact on the final cost of exporting industrial machinery will be significant.
The second relevant risk is the pressure on local distributors and importers. If the cost of importing from Europe rises, trading partners in the U.S. may look for domestic alternatives.
The third, less immediate but structural, is the possible reconfiguration of logistics routes and hubs. If the land port tax is implemented, companies that used to use Mexico or Canada as an intermediate entry point will see this arbitrage become more expensive or eliminated.
Practical logistical recommendations
The first thing is for each company to quantify its actual exposure: what volume in kilos it exports to the U.S., through which port it enters, and what percentage freight represents of the selling price.
The second is to review current contracts with U.S. customers to see if they include price review clauses for regulatory or tariff variations.
The third thing is to explore whether it makes sense to consolidate shipments with other companies in the same sector or in amec’s environment, to dilute the extra cost per kilogram. The rate penalizes weight, not value, so the value density of the shipment matters a lot.
Resources
THE WHITE HOUSE. RESTORING AMERICA’S MARITIME DOMINANCE.
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Contact us for more information!
- Susana Gonzalez
- Intelligence and Training
- sgonzalez@amec.es
