Caribbean Nations Unite Against Proposed US Fees on Chinese-Built Ships Amid Economic Concerns

The anticipated US policy regarding Chinese-built ships poses a significant threat to Antigua and Barbuda, as well as the broader Caribbean region.

As leaders from various Caribbean nations gather in Jamaica this week for discussions with US Secretary of State Marco Rubio, they face the challenge of formulating a united response to a proposal that could impose a US$1.5 million fee on all ships manufactured in China or on shipping lines that utilize Chinese vessels at US ports.

Darwin Telemaque, the Port Manager, voiced his concerns during a state television broadcast from Singapore, where he is attending a shipping conference.

He highlighted that if the policy takes effect, it would have dire repercussions for the economy and supply chain in Antigua and Barbuda.

Currently, a substantial portion—approximately 40%—of the vessels serving the St. John’s Harbour from Miami are built in China, including key shipping lines like Tropical Shipping, Seaborne, King Ocean, and CMA CGM.
Telemaque warned that the implications extend beyond just rising freight costs. If shipping companies alter their operations to avoid penalties, it may disrupt the reliable service currently enjoyed by the Caribbean.

Moreover, the freight rates could skyrocket, potentially doubling the costs. He illustrated this by noting that a freight rate of US$9,000 could escalate to between US$18,000 and US$20,000.

Such an increase would drastically impact consumers and businesses in the region.

In response, CARICOM is pursuing a special exemption under the Caribbean Basin Initiative (CBI) in its discussions with Secretary Rubio.

Additionally, representatives from regional shipping agencies have recently engaged with US officials to advocate for concessions for Caribbean nations.

Telemaque emphasized that if these negotiations do not yield favorable outcomes, the Caribbean could face significant challenges and economic strain in the future.