Montserrat to Benefit from U.S. Shipping Fee Exemption on China-Built Vessels

Montserrat’s import-reliant economy is set to benefit from a major trade decision by the United States Trade Representative (USTR), which exempts Caribbean shipping routes from proposed million-dollar port fees on China-built vessels. The announcement, made on April 17, 2025, follows a coordinated campaign by the CARICOM Private Sector Organisation (CPSO) and regional leaders.

The exemption averts what many feared would have been a catastrophic blow to trade in the region, including soaring shipping costs, widespread delays, and increased inflation. With Montserrat importing more than XCD $3 million in food annually, Premier Reuben T. Meade had previously warned of the pressure rising shipping costs would place on consumers and called for the island to explore alternative sources for essential goods.

The original USTR proposal included steep port fees, reportedly exceeding US $1 million per U.S. port call, on vessels built in China. These vessels which make up a significant portion of those servicing the Caribbean. The new exemption removes these fees for ships operating within 2,000 nautical miles of the U.S. and Caribbean, ships under 55,000 deadweight tons and fewer than 4,000 TEUs, and specialised bulk or liquid cargo vessels up to 80,000 deadweight tons.

The CPSO, in a public statement, thanked regional Heads of Government for their decisive intervention, particularly Barbados Prime Minister Mia Amor Mottley, who led outreach efforts to U.S. Secretary of State Marco Rubio and President Donald Trump. The organisation also praised the work of Dr. Patrick Antoine and his team at the CPSO Secretariat for crafting compelling technical submissions and testimony.

“This tremendously beneficial outcome is the product of leadership and collaboration among several key private sector stakeholders and the governments of the CARICOM states,” said CPSO Chairman Gervase Warner. He added that over 700 stakeholders joined the initial CPSO coordination call in March, followed by regional consultations that unified the Caribbean’s private sector response.

The exemption is seen as critical to preserving supply chain stability across the region. The CPSO also acknowledged the contributions of Tropical Shipping, Seaboard Marine, the Caribbean Shipping Association, and the Port Management Association of the Caribbean, among others, for their efforts in making the case to the USTR.

Additionally, U.S. Congresswoman Stacey Plaskett of the U.S. Virgin Islands played a pivotal role during U.S. congressional hearings, further strengthening the Caribbean’s advocacy push.

“The campaign by the regional private sector and the Community, would have been far more challenging without the overwhelming support of the regional print and electronic media. As Chairman of the CPSO, I convey heartfelt thanks on behalf of the Executive Committee and the 5,500 plus members of the Organisation. We at the CPSO anticipate your continued support, even as we direct our focus to other matters critical to the Community, such as the impact of US tariffs on CARICOM trade. Dr. Antoine and his team at the CPSO are also playing an important strategic role with the CARICOM Secretariat on this issue.,” said Warner.

For Montserrat, the exemption provides much-needed breathing room for businesses and residents already grappling with rising costs and limited shipping options.