Honolulu Star-Bulletin Business
U.S. slaps
Japan ships with
$100,000-per-visit levy

The move is in retaliation
for restrictions on U.S. shippers

From staff and wire reports

WASHINGTON - Japanese cargo liners will be charged $100,000 every time they make port in the United States to retaliate for restrictive practices against U.S. shippers in Japanese harbors

The Federal Maritime Commission said yesterday it will begin the levies April 14 on three Japanese shipping companies that operate in U.S. ports - Kawasaki Kisen Kaisha Ltd., Mitsui O.S.K. Lines Ltd. and Nippon Yusen K.K.

With those companies' cargo vessels averaging 34 arrivals a month in U.S. ports, the agency estimated the new levies could total $45 million a year.

Hawaii gets four Japanese cargo ship visits a month, all Nippon Yusen Kaisha vessels, plus a few independent unscheduled vessels a year. NYK ships from Japan stop in Honolulu twice a month on the way to Mexico and then twice a month on the way back to Japan.

In Tokyo, Japanese Transport Minister Makoto Koga criticized the sanctions and demanded they be rescinded.

The maritime commission accused the Japanese of discriminating against U.S. carriers who have attempted to run their own operations in Japanese ports.

In a 20-page ruling, the commission said the Japan Harbor Transportation Association, a trade organization of waterfront employers, wields such considerable power that no American carrier can run its own dock operations in Japan.

By not letting new potential entrants on the docks, Japan has kept its harbors purely Japanese, the commission said. It said Japanese companies are allowed to run their own stevedoring and terminal operations in the United States.

The maritime commission said it would increase the levies if the Japanese attempt to retaliate against American carriers.

"These restrictive practices have severely impacted U.S. shipping lines and trade with Japan," Howard Creel, chairman of the FMC said in a statement. "I am disappointed that there has been no measurable progress made on these issues thus far."

Creel held out hope that the situation could still be resolved before the sanctions take force. However, he said if the JHTA follows through on threats to bar U.S. lines from Japanese ports, "the level of fines on Japanese carriers would be increased accordingly."



The Associated Press, Bloomberg News and
Star-Bulletin reporter Russ Lynch contributed to this report.




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