NASSAU, BAHAMAS- Tropical Shipping and other shipping companies have been spared from $1 million tariffs that threatened to double freight costs to The Bahamas, its CEO hailing the move as “a huge victory for the entire Caribbean region” after an aggressive advocacy campaign helped secure a presidential exemption.
The proposed tariffs, part of a broader U.S. effort to revive domestic shipbuilding and reduce reliance on Chinese manufacturing, would have levied a flat $1 million fee on every Chinese-built vessel entering a U.S. port. For Tropical Shipping, one of the biggest cargo movers between Florida and The Bahamas which relies on a fleet of 19 boats—nine of which were built in China—the surcharge could have pushed freight costs up by as much as $2,500 per 40-foot container.
“This would have placed an unbearable burden on Bahamian consumers and businesses,” said Tropical Shipping President and CEO Tim Martin. “The region would have been forced to look elsewhere for goods, at greater cost and uncertainty. We’re grateful our voices were heard.”
Martin credited the exemption to months of coordinated pressure from Caribbean governments, business groups, and advocacy organizations that warned U.S. trade officials of the devastating economic consequences the fee could bring. Letters and testimonies poured in from Caribbean leaders and U.S. lawmakers, including Congresswoman Stacey Plaskett and the Prime Minister of Barbados, Mia Mottley, who chairs CARICOM.
Tropical, headquartered in Riviera Beach, Florida, and operating out of the Port of Palm Beach, argued that the proposed tariff would effectively punish American carriers for shipbuilding decisions made decades ago, long before tensions with China led to current trade policies.
“The U.S. shipping industry serving the Caribbean cannot absorb the additional costs of the proposed port fees, which would have significant economic consequences,” Martin testified earlier this year before the United States Trade Representative (USTR).
He warned that applying the same $1 million tariff to Tropical’s smaller vessels, which typically carry 1,100 TEUs or less, would be disproportionately damaging compared to mega-ships transporting 16,000 TEUs directly from China. For larger ships, the per-container impact would be as low as $125. For Tropical, the cost could spike to over $2,000 per container.
Roberts, owner of the Super Value food store chain, warned that such an increase would have sent grocery prices “through the roof,” further straining Bahamian households already grappling with inflation.
“This is what happens when the Caribbean speaks with one voice,” Martin said. “We avoided a disaster, but we also showed that our economies cannot be treated as an afterthought in U.S. policy.”
The exemption only applies to existing Chinese-built vessels, not future ship acquisitions—something Martin says Tropical will carefully consider in long-term planning as the U.S. doubles down on domestic shipbuilding.
Tropical Shipping plans to remain active in Washington to ensure Caribbean trade remains a priority in future trade negotiations.
Sweetwater, Florida-based King Ocean released a similar statement regarding the development. King Ocean Services, last year, announced its partnership with Betty K Agency Limited, with the launch of a new service from Port Everglades to Nassau, Bahamas. As part of that arrangement, Ocean Services acts as Betty K’s U.S. agency and commercial representation and is also responsible for managing Betty K’s South Florida operations, including terminal, warehousing, and trucking.
“We are relieved to see language protecting King Ocean and the interests of the South Florida regional shipping community, as well as providing clauses and fee exemptions for our client base and our trade lanes at large. Based on the type and size of vessels that King Ocean operates, and our absolute focus on the markets of the region, our trade and our fleet has been exempted from all fees, immediate and proposed. We are confident that with this news, we are well-positioned to continue serving all our customers and industry partners with the same level of service and dedication that you have come to depend on us for,
and we are so proud of our efforts that have contributed to this outcome,” the company noted.
