Caribbean Trade at Risk Due to Proposed U.S. Port Fees

Containers at Port of Spain docks.Photo by
Renaldo Matamoro on UnSplash.

Prime Minister of Barbados Intervenes

The Prime Minister of Barbados, Mia Amor Mottley, who also leads CARICOM, has sent a letter to U.S. President Donald Trump.

She asked him not to let the Caribbean be affected by fines on Chinese-made container ships that stop at U.S. ports.

Ms. Mottley spoke about this during the opening of the Courts Welches Superstore in St. Thomas. She warned that these new rules could seriously harm trade—not just in Barbados and the Caribbean—but also in Florida.

Impact on Trade and Economy

She explained that the Caribbean relies on regular shipments every seven days. These include food, vegetables, equipment, and spare parts.

Disrupting this supply with new shipping costs would raise prices and hurt both the Caribbean and Florida businesses that earn money from handling goods.

She said people might start using other trade routes if the cost gets too high. Ms. Mottley is hopeful that President Trump will understand how this affects the Caribbean. She hopes the region can get an break from these rules.

Proposed U.S. Port Fees

What is concerning Mottley is that the U.S. Trade Representative has proposed imposing substantial fees on vessels associated with China.

Specifically, the proposal includes a fee of up to $1 million per U.S. port entry for operators of Chinese-built ships, and up to $1.5 million per entry for vessels constructed in China. These fees are intended to reduce China’s dominance in shipbuilding and promote U.S. maritime interests.

Affect on Caribbean Shipments

Regarding the vessels that supply goods from the U.S. to Caribbean islands, many are indeed Chinese-built. This is largely because China has become a leading builder of small container ships suitable for Caribbean routes. For example, members of the Caribbean Shipowners Association have fleets where approximately 45% of the vessels are constructed in China.

Consequently, the proposed U.S. port fees, if implemented, could significantly impact shipping costs and trade in the Caribbean region making everything more expensive.

Most Caribbean cruise ships are not built in China, at least as of now. The majority of the world’s large cruise ships—including those serving the Caribbean—are built in Europe.

Conclusion

The proposed U.S. port fees on Chinese-made container ships could have a significant impact on trade and economy in the Caribbean region. Prime Minister Mia Amor Mottley’s intervention highlights the need for urgent attention to this matter. The Caribbean region relies heavily on regular shipments, and any disruption could lead to increased prices and harm to businesses.

Frequently Asked Questions

Q: What is the proposed U.S. port fee on Chinese-made container ships?

A: The proposed fee is up to $1 million per U.S. port entry for operators of Chinese-built ships, and up to $1.5 million per entry for vessels constructed in China.

Q: How will the proposed fees affect the Caribbean region?

A: The fees could significantly impact shipping costs and trade in the Caribbean region, making everything more expensive.

Q: Are most Caribbean cruise ships built in China?

A: No, most Caribbean cruise ships are not built in China. The majority of the world’s large cruise ships, including those serving the Caribbean, are built in Europe.

Source: Barbados GIS.