A U.S. Trade Representative proposal to impose million-dollar fees on Chinese-built cargo ships visiting U.S. ports is drawing attention, particularly concerning its impact on the banana trade, as highlighted by Dole Plc. Jared Gale, Dole's chief legal officer, stated at a Washington hearing that the U.S. fresh fruit trade, especially bananas, would face challenges due to this proposal. Bananas, transported on small, refrigerated vessels, rely on frequent trips to multiple U.S. ports. Gale emphasized that the proposed fees could quickly increase grocery prices since bananas are low-margin products not grown domestically.
Gale noted that Dole operates a fleet of specialized ships, including four built in China, due to a lack of alternatives in the U.S. or the second-hand market. Other witnesses at the hearing indicated that larger container lines might manage the costs better, but smaller vessels and industries dealing with lower-margin exports could face economic strain.
Alejandra Castillo from the North American Export Grain Association pointed out the lengthy process required to establish a U.S. fleet for exporters, which could force farmers to cut production, leading to substantial financial losses. Peter Friedmann, of the Agriculture Transportation Coalition warned of potential uncompetitive pricing for U.S. products globally due to increased transport costs.
Ed Brzytwa from the Consumer Technology Association suggested the USTR collaborate with allies to address China's anticompetitive practices, cautioning that the measure could elevate consumer costs.
Source: Transport Popics