Congresswoman Stacey E. Plaskett released a statement Thursday about the proposed imposition of punitive service fees and restrictions on shipping companies, which could skyrocket costs for Americans and exponentially for island locations like the Virgin Islands.
“I am deeply concerned by the Trump Administration’s U.S. Trade Representative (USTR) proposed actions to impose significant port fees on maritime transport operators with fleets comprised of Chinese-built vessels. If implemented, the proposed action will have far reaching economic consequences throughout the United States, including increased shipping costs and shipping delays. I am particularly concerned for coastal and island communities, including the Virgin Islands, where the imposition of these punitive measures will skyrocket costs of food and other everyday items that must be imported by the maritime industry.
“I am working with the Virgin Islands maritime industry to track the implications of USTR’s proposal on ship owners, operators, and builders. Under this proposal, transport operators with fleets comprised of Chinese-built vessels will be charged up to $1.5 million per vessel entrance to an American port, as well as an ‘additional fee’ of up to $1 million per vessel entrance to an American port if the number of foreign-built vessels in the operator’s fleet is equal to or greater than 25 percent. Even vessels under the U.S. flag, operated and owned by a U.S. entity that are Chinese-built would be subject to the fees in USTR’s proposal.
“The impacts will be felt across most industries, given the role ocean transportation plays in virtually all supply chains. American businesses and consumers will be hit with price increases at the grocery store, the gas station, and the hardware store. The Virgin Islands will be disproportionately impacted, given our reliance on the maritime industry to import essential products. The price increases will be directly passed on to consumers in the Virgin Islands and across our nation. If imposed, USTR’s proposal will have drastic consequences on Americans.
“My office has been working with the shipping industry and members of Congress, particularly in those areas that have large shipping industries and primarily rely on maritime commerce. We are urging the Trump Administration to heed the feedback of elected officials, the maritime industry, and stakeholders before imposing these actions that will have radically negative consequences for our corner of the American experience. I will continue to collaborate in a bipartisan manner with my colleagues, stakeholders, and the Virgin Islands community to advance the interests of the Virgin Islands.”
