Leaders of several Caribbean countries are meeting in Jamaica this week ahead of talks with US Secretary of State Marco Rubio next week. This as the region scrambles to arrive at a common approach to the Administration’s announced intention of implementing a US$1.5 million on all ships that are made in China or shipping lines which utilize Chinese vessels that call at US ports.
Speaking on state television on Monday night from Singapore where he is attending a shipping meeting, Port Manager, Darwin Telemaque said the move, if implemented, would be devastating to Antigua and Barbuda and the region.
He explained that of the cargo lines that make weekly calls at the St. John’s Harbour from Miami, all have an average of forty percent of their vessels built in China. “We have Tropical Shipping, Seaborne, King Ocean and CMA CGM serving us weekly out of South Florida, Miami. King Ocean has approximately 25 percent of their fleet built in China; Tropical has somewhere between 48 and 52 percent of their fleet built in China; Seaborne has pretty much the same about 48 percent and 41 percent for CMA CGM,” he disclosed.
According to Telemaque the impact is likely to go far beyond the anticipated increase in freight rates; it could impact the type of service that the Caribbean gets should this policy go into effect. “For example, we have weekly service coming out of Miami, and that’s because the ships are able to use all he tonnage they have to execute the services. If the ships are forced to make changes in order to reduce their exposure to those fines, then there are likely to be interruptions in the quality of service that we get from those shipping companies.
“Secondly, the freight rates would be astronomical; the increases we saw during COVID-19 would look like child’s play. That’s because during COVID, the regional lines serving us from Miami implemented minimal increases during that time. However, the analysis is that we could see rates increase of between 90 and 100 percent,” he disclosed.
This means that a US$9,000.00 freight rate could go as high as US$18,000.00 to US$20,000.00. This has to be coupled with the type of service that the region gets should the policy go into effect and shipping companies pass on the increased costs to consumers.
Telemaque noted CARICOM is seeking a special ‘carve out’ under the Caribbean Basin Initiative (CBI) in the meeting with Secretary Rubio, but additionally, a senior official of the shipping agency that serves the region has had meetings with US officials in recent days to get special accommodations for Caribbean states. If these do not work, Telemaque noted, the Caribbean can expect ‘some very painful time ahead if this policy goes through without allowances for the region’.
