By Jamie Martin
The Renewable Fuels Association (RFA), along with many agricultural and export organizations, has asked the U.S. Trade Representative (USTR) to exempt agriculture exports from newly proposed shipping fees and vessel sourcing rules.
The proposal includes higher fees on Chinese ships and requires more U.S.-built, U.S.-flagged vessels. The letter explains that the U.S. does not currently have enough such ships to support global agricultural trade.
In 2023, U.S. agricultural exports totalled $191 billion, with over 70% transported by sea through various U.S. customs districts. Experts say that only 0.2% of the global bulk vessel fleet is U.S.-built, and over half of these are Chinese-made. This shortage could put American agriculture at a competitive disadvantage.
The RFA highlighted that the ethanol industry had a strong export year, shipping renewable fuel and animal feed globally. However, the industry depends on reliable, timely shipping.
“Efficient, reliable, and timely export transportation service is critical to the viability of our industry, and the imposition of these fees would be devastating to our marketplace,” said RFA President and CEO Geoff Cooper.
The letter, while supporting the goal of strengthening U.S. shipping, warns of serious consequences if current policies move forward too quickly. It noted that uncertainty over trade actions has already affected commodity prices and exports.
Shipping companies have also informed exporters that they will pass on the full cost of the proposed port fees.
The letter concludes with a request: “Our organizations would like to work with USTR and the Trump Administration on their development of trade actions to revitalize the U.S. maritime industry without harming export dependent industries such as U.S. agriculture.”
The group asks for agriculture-related exports and key imports to be exempted from these requirements until enough U.S.-built vessels are available.
Photo Credit: usda
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