Container Fees Threaten U.S. Ag Exports

By Scott C. Lucas|7 April 2008

The U.S. National Cotton Council (NCC) is monitoring per-container fee increases, because most cotton exports are delivered in containers when water transit is involved. In recent years, containers have provided a secure and efficient means for exporting cotton, cottonseed, and cottonseed products.

Agricultural exporters have expressed opposition to the proliferation of fees at ports across the country. However, many prefer a fee that is based on the value of the contents in the container, if they must participate in funding infrastructure and environmental initiatives.

The model for a value-based fee is proposed in national legislation by Rep. Calvert (R-CA). The intent of Calvert’s proposed legislation is to ensure that low-margin products, such as agricultural exports, would not be priced out of the global marketplace.

In a related development, an e-mail to trade associations from Erik Autor, vice president of the international trade counsel, National Retail Federation, urged the associations to circulate a letter among their members concerning the fees and join a litigation effort opposing the fees. That letter is in the Technical area of the NCC’s web site at www.cotton.org.