USTR Reduces Fees on Foreign‑Built LNG Tankers and Vehicle Carriers

The Office of the U.S. Trade Representative (USTR) has formally amended its April Section 301 maritime proposals, which targeted non‑U.S.‑built liquefied natural gas (LNG) tankers and roll‑on/roll‑off (RoRo) vehicle carriers. These changes reflect a significant policy shift aimed at preserving U.S. exporter competitiveness while continuing support for domestic shipbuilding.

Key Revisions

  • Removal of LNG Export Penalties
    The revised rule eliminates language allowing the suspension of LNG export licenses for exporters who fail to meet escalating quotas of shipping on U.S.-built vessels. Under the original plan, exporters were expected to transport 1 percent of LNG on American-built ships by April 2029, increasing to 15 percent by April 2047—but without enforcement consequences.

  • Reduced Fees for Vehicle Carriers
    The fee structure for non‑U.S.‑built RoRo vessels has been significantly lowered, from an initial proposal of $150 per car capacity to $14 per net ton. Vessels participating in the Maritime Security Program (MSP) and those carrying U.S. government or military cargo remain exempt.

The April announcement prompted widespread industry concern. LNG exporters and vehicle carrier companies argued that the proposed measures were harsh and risked undermining U.S. export competitiveness and supply chain stability. In response, the USTR reopened the proposal for public comments, with a deadline set for July 7, 2025.

Broader Impacts

  • Global Trade Efficiency
    The reduced fees are expected to maintain the attractiveness of U.S. ports to foreign carriers, helping to prevent trade disruptions and preserve the efficiency of international supply chains.

  • Domestic Shipbuilding Encouragement
    While enforcement has been relaxed, the USTR maintains strategic goals to revive U.S. shipyard output and reduce reliance on foreign maritime manufacturing, especially from China.

  • Geopolitical Considerations
    The updated measures balance countering China’s maritime dominance with preserving trade fairness, avoiding overly punitive actions that could trigger retaliatory measures.

Rob Jennings, vice president of natural gas markets at the American Petroleum Institute, stated the revisions are “a step in the right direction” to maintain U.S. LNG export competitiveness. Trade associations and shipping firms have generally welcomed the adjustments while urging ongoing transparency and procedural fairness.

Maple Harbour Saves 23 Crew from Flooded Run Fu 3
Maple Harbour Saves 23 Crew from Flooded Run Fu 3
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The USTR’s modifications reflect a more balanced approach, maintaining long-term support for U.S. shipbuilding without imposing punitive measures that could impede export operations or disrupt maritime commerce. The public consultation period remains open through July 7, 2025.