By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian businesses were yesterday anxiously awaiting “more clarity” after the top US trade negotiator promised the up to $1m per port call fee on Chinese-made ships will not be implemented as proposed.

While some hailed the position unveiled to Congress by Jamieson Greer, the US Trade Representative, as “excellent news”, others said they are taking nothing for granted and are “on pins and needles” waiting to see all the details that the Trump administration intends to unveil on Thursday as part of its strategy to drive ship-building back to the US.

Mr Greer, under questioning by Senator Bill Cassidy during a Senate Finance Committee hearing, confirmed that “not all fees” contained in the original Chinese-made ship proposal will be implemented following strong opposition and push back from the shipping industry, US exporters and others. He also promised that not all would be “stacked”, which seemed to suggest that fees will not be layered on fees.

After Mr Cassidy pointed out that the proposal would negatively impact the ports in his Louisiana constituency, Mr Greer replied: “To address the lack of ship building in the US, the US Trade Representative’s Office proposed actions to do just this. They are proposed actions. They are series of potential remedies that could be used to incentivise ship building in the US.

“They [the fees] are not all going to implemented. They are not all going to be stacked. We’ve asked for a lot of input on that. We’ve had a hearing on that, we’ve collected comments, we’re reviewed it, I’ve met personally with certain stakeholders during that time period, and I think the president is looking very carefully to make sure that we have the right amount of time and right incentives to create ship building here without impeding our commodities exports.”

While Mr Greer’s comments have raised hopes and expectations that The Bahamas, its import-dependent economy, citizens and businesses may escape the worst or full effects of the Trump administration’s Chinese-made ship fees, they also confirm that some fees will likely be implemented although on who, and the how and when, are presently unknown.

Tim Martin, Tropical Shipping’s chief executive, in a messaged reply to Tribune Business wrote yesterday: “We will know on April 17.” The freight operator, one of the biggest cargo movers between Florida and The Bahamas, would be among those taking the greatest hit given the number of Chinese-made vessels in its existing fleet. Such increased costs would inevitably be passed on to Bahamian companies and consumers.

Tropical Shipping, in its last submission to the US Trade Representative’s Office on April 2, 2025, had warned that if implemented in its original form the Chinese-made ship fee would increase its cargo rates by $2,500 per 40-foot container and make The Bahamas and wider Caribbean “altogether economically infeasible for carriers to serve’.

And Dr Patrick Antoine, chief executive and technical director for the Caribbean Private Sector Organisation (CPSO), added that the $1m per port call fee would increase freight costs by between 50 percent to 60 percent for companies in The Bahamas and wider region.

“As proposed, the US Trade Representative’s Office’s measures will result in unintended consequences for CARICOM economies, private sector business and consumers as maritime transport accounts for more than 90% of CARICOM’s trade in goods,” Dr Antoine wrote.

“Estimates of the additional freight cost resulting from the implementation of the proposed US Trade Representative’s Office’s measures among CARICOM businesses suggest increases ranging from 50 percent to 6 60 percent based on the US $1m fee.”

Bahamian businesses yesterday reacted to Mr Greer’s comments with cautious but nervous optimism. Sir Franklyn Wilson, the Arawak Homes and Sunshine Insurance chairman, told this newspaper: “Let me put it this way. All the persons to whom I have spoken think it’s very, very good news. The point of the matter is that we have to go through this thing one step at a time. That is good news.”

Mark A Turnquest, founder of the 242 Small Business Association and Resource Centre, as well as a consultant to many companies of that size, agreed that the US Trade Representative’s remarks were “excellent news” but added that “more clarity” is required before the Bahamian private sector can celebrate.

“That’s excellent news because we cannot afford any hike in prices related to shipping or any hike in prices related to actual product costs,” Mr Turnquest told Tribune Business. “That would be detrimental to our well-being, and we will most definitely lose business and some of us might go out of business eventually because it will become too competitive to stay in business.”

However, with the US Trade Representative’s Office yet to reveal the specifics of what it now plans to implement, he added: “We are on pins and needles. We don’t know what Donald Trump is about in terms of strategy.... The shipping cost proposal is excessive. The problem with it is we need more substantive policies.

“We need clearly identified information as to whether, and by what percentage, shipping costs will increase, how and when it will be executed, and how Tropical and other carriers that ship to The Bahamas will be affected.

“It’s going to affect the level of prices; that’s what we have to be concerned about. At the end of the day, a rise in shipping costs is a rise in prices to the customer and a rise in prices to business and, of course, a decline in profit margins for us. A rise in prices clearly leads to a decrease in sales; it always happens,” Mr Turnquest said.

“It’s a challenge every morning now. You wake up, you cannot plan, you cannot grow at the level you want to, you cannot invest... We need more clarity; how it affects us directly. We don’t want it to be applied to our jurisdiction, and need to know more from Tropical to determine how it affects us. It’s chaos. It’s really chaotic. I’ve never seen such a chaotic policy from the US. No Republican or Democrat signed up for this.”

Tropical Shipping, in its final submissions to the US Trade Representative’s Office, urged that the Chinese-made ship fee not be imposed if those vessels are owned and operated by an American carrier. And, alternatively, it also called for a waiver or exemption for vessels weighing below 55,000 dead weight tonnes which are typically those that service The Bahamas and the Caribbean.

Dr Antoine and the CPSO, meanwhile, also urged that The Bahamas, wider Caribbean and shipping serving the region be exempted from the Chinese-made ship port fee. They suggested ‘grandfathering’ in existing Chinese-made ships and creating a waiver for regional transshipment hubs.

The Bahamas, according to the US’ very own investment climate statement, currently has a $4.5bn trade deficit with the US. This means it imports far more physical goods from the US than it exports to it, raising immediate questions about why the country has been caught up in Mr Trump’s tariff war.

“There has been significant consolidation of liner services in CARICOM over the past two decades - a reduction from over 15 to the five consistent lines currently,” Dr Antoine said. “Several CARICOM member states are serviced by only two liners, largely from ports in Florida.

“The relatively small markets of CARICOM member states, port depths and ‘short sea’ shipping models require smaller shallow drafts which are more difficult to procure. The five liners operate at least one China-built vessel. Many of these vessels have been ‘purpose built’ with the capability to supplement deficient port infrastructure such as gantry cranes.

“The reduction of ‘vessel’ service - a distinct possibility if the US Trade Representative’s Office’s measures are implemented in their present form - will result in major supply side challenges to US and CARICOM businesses and consumers, the erosion of lucrative markets for the US and CARICOM farmers, manufacturers, distributors, shipping and logistics services, among others.”