News in English

Leadership Insights Webinar: U.S. Trade Representative Section 301: Proposed Remedies

The International Chamber of Shipping (ICS) hosted a webinar, on Monday 10 March 2025, to discuss the United States Trade Representative’s (USTR) proposed remedies under Section 301, following its investigation into China’s maritime logistics and shipbuilding practices. The session focused on these measures and their potential implications for global shipping, U.S. trade, and the broader maritime industry.
Guy Platten, Secretary General of the International Chamber of Shipping moderated the webinar with Joe Kramek, President and CEO of the World Shipping Council, Rachel Noronha, Head of Shipping Policy at the International Chamber of Shipping, Lars Robert Pedersen, Deputy Secretary General of BIMCO, and Tim Wilkins, Managing Director of INTERTANKO all participating as panellists.
The discussion highlighted several concerns, particularly the lack of clarity surrounding key definitions in the proposed measures. Under the USTR’s remedies, Chinese-operated and Chinese-built vessels calling at U.S. ports would face steep service fees – up to $1 million per vessel for Chinese-operated ships and up to $1.5 million for those built in China. However, significant ambiguity remains regarding how these fees would be calculated, who would be responsible for payment and how shipping fleets would be defined. Without these clarifications, shipping companies are left uncertain about their future operations and potential liabilities.
Beyond administrative concerns, the economic impact of these measures could be substantial. Industry experts warned that freight rates could double, reducing the global competitiveness of key U.S. exports such as oil, gas, soy and grains. The proposed fees would drive up voyage costs, significantly affecting crude and chemical exports. These additional costs would likely be passed on to U.S. consumers and businesses, raising concerns about inflation and potential supply chain disruptions.
Another key concern raised during the discussion was the risk of port congestion and shifting trade patterns. To avoid rising costs, operators might reduce U.S. port calls, concentrating traffic at major ports while smaller ports face a decline in business. Such disruptions could mirror the shipping bottlenecks seen during the COVID-19 pandemic, further straining global supply chains. Additionally, as the cost of trading with the U.S. rises, companies may reroute trade to other regions, ultimately weakening U.S. trade.
To address these concerns, industry representatives are taking proactive steps. ICS and other major shipping organisations are preparing formal submissions to the USTR, outlining the economic, operational and logistical consequences of the proposed measures. The deadline for written comments is March 24, and several organisations – including ICS and WSC and others – have requested to testify at the public hearing to ensure that industry voices are heard. Additionally, there is also a growing effort to coordinate with other affected sectors, such as agriculture, retail, manufacturing and energy, to build a stronger case against the proposals.
Further complicating the situation is the possibility for an Executive Order that could fast-track implementation before the industry has a chance to fully respond. This uncertainty has led many stakeholders to call for a more measured and transparent approach, ensuring that any trade policy changes do not unintentionally harm U.S. businesses, workers and consumers.
The webinar highlighted that the coming weeks will be critical in shaping the outcome of this issue. Shipping companies, trade associations and industry stakeholders are encouraged to submit feedback, engage in discussions and prepare for potential regulatory changes. The consequences of these measures extend far beyond shipping, with far reaching consequences for global trade, economic stability and the long-term competitiveness of U.S. exports.