AD/CV Duties on Intermodal Containers Could Increase Shipping Times, Costs, Say Trade Groups
The imposition of antidumping and countervailing duties on intermodal shipping containers would lead to container shortages, longer shipping times, and increased costs, said a group of 22 industry associations in a letter to the International Trade Commission dated April 8 (here). The trade groups, including six regional customs broker associations, the American Apparel and Footwear Association, the U.S. Fashion Industry Association and the Retail Industry Leaders Association, urged the commission to end its AD/CVD investigations on 53-foot domestic dry containers from China with a finding of no injury to domestic industry and no duties imposed.
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The 53-foot containers covered by the investigations are the “standard” for intermodal shipping by truck and rail in North America, according to the letter. Wisconsin-based Stoughton Trailers, the domestic company that requested AD/CV duties on 53-foot containers, says it can replace imports from China with its own product, but prototype containers provided by Stoughton fail to meet the specifications of intermodal service providers, including protection from damage due to crushing and water leakage.
The imposition of duties would result in a container shortage causing increased costs and lead times if duties are finalized, said the letter. “An affirmative final determination, in which significant AD/CVD duties are imposed, will stymie the ability of the intermodal industry to source additional containers and weaken the infrastructure, safety, and reliability of the intermodal industry,” said the trade groups. “Simply put, shortages of 53-foot containers will result in considerably longer shipping time for goods and increased costs. These freight inefficiencies will have a significant negative impact on consumers, the retail, manufacturing and agriculture sectors, and the overall economy.”
No real alternative exists for shippers faced with a shortage of intermodal containers, said the letter. Over-the-road trucking would be an alternative, but the current shortage of truck drivers means the trucking industry would not be able to meet demand, it said. The switch to over-the-road trucking would also lead to increased highway congestion, causing infrastructure and safety issues as well as increased greenhouse gas emissions, said the trade groups.
The ITC and the Commerce Department began the AD/CVD investigations in May 2014 (see 14051610). Commerce imposed CV duty cash deposit requirements ranging from 7.13% to 10.46% in September, and AD duty cash deposit requirements at 98.92% to 104.59% in November (see 1411250006 and 1412310044), following an ITC determination that there is a “reasonable indication” of injury to domestic manufacturers of 53-foot containers (see 14060624).