The Office of the United States Trade Representative (USTR) recently launched a public consultation process on proposed changes to maritime regulations. According to documents released by the agency, these proposed changes relax scrutiny and fee requirements for foreign vessels, a move seen as a significant boon by the shipping and energy industries.
The new amendments not only reduce fees for liquefied natural gas (LNG) and vehicle transport ships produced outside the U.S., but also eliminate penalty provisions for LNG carriers that do not meet the requirement of a percentage of American vessels.
Rob Jennings, Vice President of Gas Markets at the American Petroleum Institute, stated to the media on Monday that this is a step in the right direction, and he looks forward to continuing collaboration with the USTR to ensure the competitiveness of American LNG in the global market.
According to documents released by the USTR in April, U.S. LNG transport vessels need to increase the total volume of U.S. LNG exports carried by vessels flying the U.S. flag or operated by U.S. companies to 1% by 2028. By April 2031, this percentage will further increase to 2%, and by April 2047, it will rise to 15%.
If LNG transport companies fail to meet this requirement, the USTR will revoke their export licenses until compliance is achieved.
This requirement has faced criticism from several shipping and energy companies as the U.S. is unlikely to produce a sufficient number of vessels meeting transportation conditions by 2028.
In the new amendments, the USTR has removed penalties for non-compliance but still requires operators to report the percentage of non-U.S. vessels.
Additionally, adjustments have been made to the berthing fees that were initially set to take effect on October 14th. The office had planned to charge $150 per ton for each non-U.S.-made vessel, including roll-on/roll-off ships transporting vehicles, but this has now been adjusted to $14 per ton.
While the fees have been significantly reduced, the charges for roll-on/roll-off ships are based on the 25% tariff the U.S. imposes on cars, meaning increased costs for overseas imported vehicles sold in the U.S. A typical roll-on/roll-off ship can carry nearly 5000 vehicles.
Currently, this proposed amendment is open for public feedback, with stakeholders required to submit comments on the revised rules by July 7th. Overall, the direction of the amendments aligns with the expectations of global shipping companies, although shipping industry groups may still seek further relaxation or exemptions.