Davids Pushes Back on Proposed Shipping Fees That Would Hurt Kansas Businesses, Farmers
Recently, Representative Sharice Davids urged U.S. Trade Representative (USTR) Jamieson Greer to amend a new shipping policy that would hurt Kansas businesses, farmers, and U.S. national security. The plan would impose massive fees on American shipping companies that rely on foreign-built ships — costs so high that Merriam-based Seaboard Corporation warns that its Marine Division could be forced out of business.
“While I support strengthening America’s shipbuilding industry and the American workers employed by the sector, I am concerned that the Proposed Action, as currently written, will have unintended consequences that would be devastating for United States-owned international ocean carriers and employment at dozens of ports around the country,” wrote Davids. “I urge you to consider the broader impacts on the U.S. shipping and agriculture industries as USTR moves ahead with the Section 301 process.”
The initial policy — outlined in Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance — is meant to boost American shipbuilding, but Davids and industry experts warn it could backfire, leaving fewer shipping options for U.S. exporters, driving up costs, disrupting supply chains, and giving Chinese companies an advantage. Davids is urging the USTR to amend the policy to protect U.S.-owned shipping companies while also encouraging the long-term growth of American shipbuilding.
“Kansas Farm Bureau fully supports Rep. Sharice Davids’ efforts to ensure U.S.-owned shipping companies and their customers, which include farmers and ranchers, aren’t caught in the crosshairs of misguided policy,” said Joe Newland, President, Kansas Farm Bureau. “We support efforts to increase America’s competitiveness in shipbuilding, but the USTR’s existing plan would raise shipping costs, destroy jobs and make Kansas agricultural products less competitive in global markets.”
Seaboard Corporation, a Fortune 500 company based in Merriam, Kansas, owns Seaboard Marine, the largest U.S.-owned international shipping carrier. The company says that under the proposed policy, they and other U.S.-owned shipping companies would be forced to pay enormous fees — up to $1.5 million every time a foreign-built ship docks at a U.S. port, even if the ship was bought when no such rule existed. Additional penalties would apply to companies that have already ordered new ships from foreign shipyards, further squeezing U.S. businesses.
The impact wouldn’t just be felt in the shipping industry. Kansas farmers rely on global shipping to export crops and import necessary supplies like fertilizer and seed. In 2022, Kansas exported $7.2 billion in agricultural products. If shipping options shrink or costs rise, farmers could be left paying more or struggling to sell their goods abroad.
Right now, the U.S. does not have enough shipbuilding capacity to meet the demand for new commercial vessels. Only ten container ships were built in the U.S. between 2010 and 2023. Davids argues that without a reasonable transition period, U.S. shipping companies will be forced out of business while foreign competitors gain even more market control. She continues to advocate for policies that protect Kansas businesses, create good jobs, and strengthen America’s position in global trade.
Read a full copy of Davids’ letter here.