OMSA Suggests Daily Charge for Chinese-Built Offshore Vessels Operating in U.S. Waters

Offshore vessel operators in the U.S. are buzzing about the White House’s recent proposal to impose hefty fees on ships from China. However, they’re hoping for an even bolder move: a daily tax on Chinese-built vessels that operate within American waters.

Even with the Jones Act safeguarding American shipping interests,the offshore services sector still faces stiff competition from cheaper foreign alternatives for specific tasks. Depending on various factors, some foreign offshore service vessels might slip through the cracks of Jones act protections while working in U.S. waters. Specialty vessels like crane ships and those used for installing wind turbines can often compete as long as they don’t transport cargo between U.S. locations—a definition that’s frequently debated but allows foreign operators to snag contracts in these waters.

Recently,the Office of the U.S. Trade Representative (USTR) unveiled plans to levy significant charges—potentially running into millions—on Chinese-owned and built vessels docking at American ports. Though, this fee only applies once per visit and solely while in port; thus, a Chinese-made vessel could still operate freely in U.S.waters without incurring any costs if it avoids port calls altogether.

The Offshore Marine Services Association (OMSA) is advocating for changes to this fee structure by suggesting that offshore work should also be included under these proposed charges against Chinese-built ships.

“We believe it’s crucial that these fees accumulate daily for any Chinese-built vessel engaged in projects within our sovereign waters,” stated OMSA president Aaron Smith. “This adjustment would help address the competitive disadvantages faced by our shipyards and mariners due to these foreign entities.”

Smith pointed out that tracking data from AIS systems or Coast Guard documentation could easily facilitate implementing such daily fees based on how long these vessels remain active in U.S. territory—impacting at least ten notable foreign competitors currently involved with offshore wind