Relief for Jamaican shipping in USTR fee ruling

JAMAICAN SHIPPING and trade stakeholders are breathing a sigh of relief following the United States Trade Representative’s (USTR) decision to exempt Caribbean shipping from steep port call fees proposed under a new Section 301 action targeting Chinese dominance in the global maritime and logistics sectors.

The outcome, announced on April 17, is being welcomed by local industry leaders who feared the imposition of new charges, reportedly as high as US$1 million per port call, would have delivered a serious blow to trade between Jamaica and the United States.

The result followed coordinated advocacy led by the Caribbean Private Sector Organization (CPSO), working alongside regional governments, industry stakeholders, and diplomatic partners. The CPSO played a central role in articulating the potential economic fallout for the Caribbean, submitting formal responses to the USTR, and rallying support across the region to protect critical trade flows.

Following extraordinary private-sector mobilisation, the CPSO led a record-setting response to the USTR’s proposal, convening over 700 stakeholders from shipping, logistics, manufacturing, and trade across the region on a single coordination call in March. The turnout marked one of the largest such efforts in recent Caribbean advocacy, culminating in two high-level consultations that produced the region’s formal submission.

Among the most affected had the fees been implemented was Seaboard Marine, a major US-owned shipping line that operates across the Caribbean and Latin America, including extensive service into Jamaica. The company confirmed that its vessels, though Chinese-built, will not be subject to the proposed US port charges due to its American ownership and its recognised role in ensuring uninterrupted trade links.

Describing itself as a “dependable bridge between the US and its trading partners in Latin America and the Caribbean”, Seaboard Marine said the exemption is a “victory for our customers”, stating it will continue to work with officials and stakeholders to support policies that promote US industrial priorities and the economic vitality of the Western Hemisphere”.

President of the Shipping Association of Jamaica, Corah Ann Robertson-Sylvester, said the announcement is a much-needed reprieve for Jamaica’s trade community.

“We are immensely relieved that this resolution came before any impact was felt on our operations and those of our partners across the Caribbean,” Robertson-Sylvester said. “The exemption provides essential stability for our supply chains and helps safeguard affordability and reliability for those who depend on our services.”

The USTR’s action stems from a lengthy investigation under Section 301 of the US Trade Act of 1974, prompted by a petition filed by five US labour unions in March 2024. The investigation found that China’s state-backed dominance in shipbuilding and logistics was distorting global competition, creating dependencies, and weakening supply chain resilience. In response, the US introduced phased measures to impose service fees and restrictions on Chinese-built and operated vessels calling at American ports.

“The concern was not only about the fees themselves, but the ripple effect they would have had on trade volume, delivery schedules, and ultimately the cost of goods for Jamaicans,” Robertson-Sylvester added. “We are thankful that the voices of our regional partners and stakeholders were heard. It demonstrates the power of collective action and timely diplomacy.

Jennifer Nugent-Hill, senior director of Tropical Shipping, concurred with Roberston-Sylvester’s comments that stakeholders from the business community and the leaders of regional governments contributed to this positive outcome. The various shipping and maritime industry associations also made the difference in the final actions from the United States government. She commended Tropical Shipping USA President and CEO Tim Martin and Seaboard USA’ President Eddie Gonzalez for their extreme due diligence and active advocacy with the US exporters and US Congressional officials to gain the exemptions for their companies.

While the initial phase of the USTR’s measures includes a 180-day grace period before any fees are applied, the exemption means that all Chinese-made vessels operating in the Caribbean will remain unaffected even after that period. The decision is expected to maintain continuity of service between Jamaica and US ports.

The SAJ remains committed to playing its part in the continued advocacy and pursuit of resolutions to the benefit of its membership.