President and Chief Executive Officer of Tropical Shipping, Mr Tim Martin testified before the U.S Trade Representative (USTR) on Monday, March 24, 2025. Photo: Tropical Shipping

Proposed tariffs include a flat one million dollar port fee on Chinese-built vessels entering U.S ports. Tropical Shipping has nine Chinese-built vessels. Photo: Tropical Shipping

About half of all goods imported to the Caribbean, Central and South America are transported by Tropical. These products range from poultry and agricultural products to medicine, building materials and hurricane relief supplies. Photo: Tropical Shipping

Proposed tariffs include a flast one million dollar port fee on Chinese-built vessels entering U.S ports and Mr Martin in his testimony on Monday, March 24, 2025, said, “The U.S. shipping industry serving the Caribbean cannot absorb the additional costs of the proposed port fees, which would have significant economic consequences,” Martin testified. “Instead of strengthening American competitiveness, these port fees would push American-owned carriers like Tropical out of business.”

USTRA asked to exempt American-owned ships from fees

Through a public announcement on the shipping company’s website on March 26, 2025, the company revealed excerpts from Mr Martin’s testimony. 

Tropical Shipping operates out of the Port of Palm Beach in Florida; nine of the company’s nineteen vessels were built in China up to 25 years ago. Its vessels were built to serve shallow draft ports in the Caribbean.

Mr Martin asked for American-owned and headquartered vessel operators to be exempted from the proposed fees and apply the tariffs on future ships built in China but not on those already in service. 

This, he testified, will “ensure that American-owned shipping companies are not unfairly penalised for decisions made years before these tariffs; thereby ensuring a fair and equitable policy”. 

Proposed fees could force Tropical to double its freight

About half of all goods imported to the Caribbean, Central and South America are transported by Tropical. These products range from poultry and agricultural products to medicine, building materials and hurricane relief supplies. 

Some sixty-five per cent of goods shipped to the Virgin Islands (VI) are shipped via Tropical Shipping. 

If the fees proposed are put in place, it would force Tropical Shipping to double its freight rates hence causing Caribbean customers to buy at a higher cost from outside the U.S. 

Of concern is that the Caribbean Basin could potentially become China’s new Red River- a trading route dominated by Chinese carriers and vessels transporting goods from China and other supply sources outside the U.S. 

The Caribbean market, Tropical said, depends on its on-time, reliable shipping and its 60 years of expertise in the market. 

They also added that American-owned carriers like Tropical are the leading ocean carriers in the Caribbean, unlike most international maritime carriers, which are not American-owned.

Tropical Shipping reiterated its support of each of the 30 ports it serves through donations to education and youth development programs. 

The USTR was also reminded that Tropical Shipping’s vessels have participated in the U.S. Southern Command’s “Tradewinds” exercises, which have been described as “key to maintaining regional security, safety, and prosperity throughout the Caribbean Basin.”