Ro / Ro Shipping

Special Report

USTR adapts planned port fees for ro / ro ships

By Keith Wallis

Wallenius Wilhelmsen had previously said a levy based on CEU capacity would make it liable for about $ 300 million a year in additional voyage fees, assuming 300 to 350 voyages to the US per year. Höegh estimated its potential exposure to the USTR’ s original plan at between $ 60 million and $ 70 million a year.

Both ro / ro operators said they would seek to pass the fees to customers, although they acknowledged they could absorb the extra costs if necessary.

Other major carriers with extensive US vehicle import business affected by the USTR measure include Japanese operators“ K” Line, Mitsui OSK Lines and NYK Line and South Korea’ s Hyundai Glovis.

Vehicle carrier operators, including Wallenius Wilhelmsen and Höegh Autoliners, face changes in the way the United States Trade Representative( USTR) plans to impose levies on ships entering US waters beginning in October.

In a 10-page notice published June 6, the USTR proposed a fee of $ 14 per net ton on foreign-built vehicle carriers, including roll-on / roll-off( ro / ro) vessels, arriving in US waters.

That would replace an earlier proposal announced by USTR on April 17 charging vessel operators $ 150 per car equivalent unit( CEU) for non-US-built vessels entering US waters. Despite the change, vessel operators still face millions in extra voyage costs.

Jennifer Thornton, USTR general counsel, indicated the change was made partly because it was easier to apply.

The change from CEUs to net tonnage is“ to address administrability and in light of the potential for fee evasion,” Thornton said in the notice, which also opened a public comment period on the planned change. The comment period closed July 7.

Net tonnage is the volume of the cargo-carrying space within a ship while CEU is a measure of carrying capacity.

Pass-through costs

Executives at Wallenius Wilhelmsen and Höegh in Norway and the US either declined to comment or did not respond to requests for comment on the impact of the revised USTR charge.

The change from CEUs to net tonnage is“ to address administrability and in light of the potential for fee evasion.”

Thornton said the fees would not apply to US government cargo or vessels operated directly for the US government by an agent or contractor. That potentially includes ships operated by Wallenius Wilhelmsen’ s US ro / ro subsidiary, American Roll-on Roll-off Carrier( ARC), which handles military and diplomatic-related shipments of equipment, vehicles and household belongings. Revenues from its government business accounted for 11 %($ 107 million) of Wallenius’ total revenues of $ 970 million in the first quarter.

During their respective first-quarter results presentations, both Wallenius Wilhelmsen and Höegh said they would lobby US authorities to seek adjustments to the levies, which were announced as part of a wider package of measures by USTR that will impose fees on all China-built or-operated vessels calling at US ports from Oct. 14.

email: keithwallis @ hotmail. com

USTR’ s proposed fee of $ 14 per net ton on foreignbuilt vehicle carriers replaces a $ 150 per CEU proposal. Shutterstock. com

36 Journal of Commerce | July 7, 2025 www. joc. com