Massport chief says proposed federal port fees on Chinese ships would hurt Boston

The head of the Massachusetts Port Authority said a new fee proposed by the Trump administration could hurt local business.

The administration may charge cargo ships built by or affiliated with China up to $1.5 million for each port they visit.

Massport operates the Port of Boston’s Conley Terminal, which processes about 2.3 million metric tons of cargo per year. This week, the agency's chief executive, Rich Davey, told business leaders at an Associated Industries of Massachusetts event that to avoid the fees, ships could decide to bypass Boston and head to a larger port.

“We would likely see a number of ships deciding to skip us and probably go right to New York,” Davey said.

If cargo business drops, Davey said, jobs at Conley may be at risk and local businesses that rely on the port would likely have to spend more on ground services to bring goods to the state.

The American Association of Port Authorities has been hearing “the same message” from its 81 port members, according to Ian Gansler, the group's director of government relations.

Ports large and small are raising concerns that “this kind of a fee would just distort market efficiencies, cause a lot of problems,” he said.

The situation would be akin to the experience during the COVID-19 pandemic, he said, when supply chain disruptions led to ships being backed up in harbors, unable to quickly unload or pick up goods.

“ That could happen again if all the ships are forced to go to only the largest ports,” Gansler said.

He also said the cost of goods on cargo ships would increase, because any added shipping costs will get passed on to consumers.

The policy could be “especially devastating for exporters,” he said. According to Massport, top exports at Conley Terminal include wood pulp, wood and paper.

“ Imagine attaching a million-dollar fee to a vessel full of wood pulp,” Gansler said. “You're going to find it cheaper somewhere else.”

Davey, of Massport, said he understands the idea behind the port fees, which is to reignite ship building in the United States.

“But how you’re getting at that, which is with this fee, I think is super concerning for a lot of folks,” he said.