Dole Warns: Increased Port Charges for Chinese Vessels Could Drive Up Banana Costs
U.S.Trade Representative Claims Fees Could Revitalize local Shipbuilding
Dole bananas on display at an H Mart in Fairfax, Virginia. (Al Drago/Bloomberg News)
A recent proposal aimed at reducing China’s grip on the global shipping sector could substantially affect banana prices and further burden consumers already feeling the pinch at checkout, warns Dole Plc’s chief legal officer Jared Gale.
“This fee would hit the U.S. fresh fruit market hard and ultimately hurt shoppers,” Gale stated during a hearing in Washington on March 26 regarding a plan to impose hefty fees on Chinese-built cargo vessels each time they dock at American ports.
Bananas are shipped from tropical regions using smaller refrigerated ships that frequently visit various U.S. ports. As bananas have slim profit margins and can’t be cultivated domestically, these proposed fees would lead to noticeable price hikes for consumers across grocery stores, he explained.
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Dole operates its own fleet of specialized vessels; four were sourced from China due to a lack of alternatives available domestically or even second-hand when they were acquired.
Other experts who spoke during this hearing expressed concerns that larger shipping companies might easily absorb these costs compared to smaller operators who rely on multiple port calls for their business model.
Alejandra Castillo, head of the North American Export Grain Association, pointed out that building up a U.S.-based fleet capable of meeting exporter needs could take years—forcing farmers to cut back production and resulting in billions lost.
Peter Friedmann from the Agriculture Transportation Coalition cautioned that increased transport expenses could render U.S.goods uncompetitive globally—potentially pushing them out of international markets altogether.
“It seems like someone didn’t do their homework,” Friedmann remarked about the proposal’s implications.
The Consumer Technology Association’s Ed Brzytwa suggested collaborating with allies instead of taking unilateral actions against China’s practices since such measures would likely inflate consumer costs further.
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