USTR eases proposed penalties, fees for non-US LNG tankers, vehicle carriers

Reuters

3 hours ago

LOS ANGELES, June 9 (Reuters) - The U.S. Trade Representative softened fee proposals for non-U.S.-built LNG tankers and car carriers amid its ongoing effort to counter China's dominance on the high seas and revive domestic shipbuilding.
The revised proposal, unveiled by USTR on Friday, would remove LNG-related penalties for failing to export a percentage of fuel on U.S.-owned ships. It also would reduce fees when foreign-built car carriers visit domestic ports and exempt those vessels when they are serving the U.S. military.
USTR previously exempted ships carrying U.S. exports as well as operators of smaller ships from port fees originally aimed at China-linked vessels. The agency also exempted vessels that service the Great Lakes, Caribbean and U.S. territories.
"This is a step in the right direction, and we look forward to working with USTR on a solution that ensures U.S. LNG remains competitive on the global stage," Rob Jennings, vice president of natural gas markets for the American Petroleum Institute, said on Monday.
USTR caught the liquified natural gas industry off guard in April with new rules for outbound shipments of that fuel, sparking an outcry.
It also surprised the vehicle carrier industry with a plan to impose port fees on all non-U.S.-built vessels in that segment - including U.S.-flagged and U.S.-crewed ships admitted to the U.S. Maritime Security Program (MSP) that supports Washington's military readiness.
USTR on Friday removed language saying it could suspend LNG export licenses until its rules for moving a percentage of outgoing shipments on U.S.-built and operated vessels were met.
On April 17, USTR said LNG producers would have to transport 1% of their exports on U.S.-built ships starting in April 2029. That percentage would escalate to 15% in April 2047 and beyond.
The World Shipping Council, whose members vehicle carriers such as Norway's Wallenius Wilhelmsen (WAWI.OL), opens new tab, did not immediately comment on the revisions.
The vehicle carrier fee effective October 14 was to be $150 per car capacity of a non-U.S.-built ship known as roll-on/roll-offs, or RoRos. Typical RoRos have capacity to carry nearly 5,000 vehicles.
In the revision, USTR lowered that fee to $14 per net ton. It also exempted vessels in the MSP, as well as U.S. government cargo - matching previous exemptions made for other vessel segments.
Companies with ships in the MSP include Florida-based American Roll-On, Roll-Off Carrier Group, a U.S.-flag operator of vehicle carriers that is part of Wallenius Wilhelmsen Group, which did not immediately comment.
The RoRo fees come on top of steep, 25% fees on auto imports imposed by Trump. These affect mainly European vehicles. U.S. exporters also use RoRos to export U.S.-made BMW SUVs, John Deere (DE.N), opens new tab tractors and other goods.
Shipping industry groups and attorneys have said USTR overreached by levying fees on RoRos made in countries that were not part of the Biden administration's fast-track investigation into China.
The USTR's revisions continued to reference "non-U.S. built" vehicle carriers.
Interested parties, which were not previously given the opportunity to comment on rules for RoRos or LNG tankers, have until July 7 to submit feedback on the revisions.