USTR Port Fee Proposal to Increase Ag Shipping Costs by Over $2 Billion
A new study finds that proposed port fees––set to go into effect in October and phase in through 2028––for Chinese-operated and Chinese-built ships will increase shipping costs for ag exporters by $2.3 billion a year, rising to $6.2 billion in 2028.
The analysis from North Dakota State University finds that grain exports, particularly corn and soybeans, will be disproportionately impacted by new fees imposed by the Office of the U.S. Trade Representative because of their use of dry bulk carriers and lower export values. Depending on the crop and route, the shipping costs could amount to five to seven cents per bushel. The authors note that although the final version of the proposed provisions softened the impacts on ag exporters, “they do not fully offset the impact on agricultural exporters.”
The analysis from North Dakota State University finds that grain exports, particularly corn and soybeans, will be disproportionately impacted by new fees imposed by the Office of the U.S. Trade Representative because of their use of dry bulk carriers and lower export values. Depending on the crop and route, the shipping costs could amount to five to seven cents per bushel. The authors note that although the final version of the proposed provisions softened the impacts on ag exporters, “they do not fully offset the impact on agricultural exporters.”