Report: Trump Fee On Chinese Ships Could Cut U.S. Coal Exports

A plan by the Trump administration to charge a fee on Chinese ships and Chinese shipping companies to dock at U.S. ports could lower coal exports, a group says.

In an effort to end China’s dominance in international shipping, the Trump administration wants to charge fees from $1 million to $1.5 million for Chinese ships and Chinese companies to dock at U.S. ports. 

The policy would mandate exporters to use U.S.-flagged, U.S. made ships, but they could get an exception for using non-U.S. vessels provided the exporter uses U.S.-built ships for at least 20% of the products it exports.

A combination of all of these, according to a report from an ad-hoc coalition of farmers, manufacturers and retailers, and logistics and transportation providers, could reduce U.S. coal exports alone by nearly 25%.

The ports of Norfolk and Baltimore are the top two coal-export terminals in the country, and a significant portion of the coal they export is mined in West Virginia.

About half the coal mined in West Virginia is exported, according to the West Virginia Coal Association.

The Friends of Coal opposes the fees and urged its members to submit comments to the U.S. Trade Representative by March 25.

Most of the coal West Virginia exports is transported by rail. The Association of American Railroads, the industry’s principal trade group, is named in the report.

The proposed fees, the report concludes, could reduce U.S. GDP and worsen the trade deficit.

The report also says the policy could affect agricultural commodities and other industrial products, including automobiles.

It has the potential to divert container ship traffic from U.S. ports to Canada and Mexico, the report says.