November 7, 2011

Contact:               Charla Skaggs, 206.787.3235 or skaggs.c@portseattle.org

                                Peter McGraw, 206.787.3446 or mcgraw.p@portseattle.org

West Coast ports applaud FMC inquiry into tax loophole
Maritime Commission researching how harbor tax could cost U.S. jobs

SEATTLE – The Port of Seattle, along with the five other major West Coast ports, sent a letter today thanking Richard Lidinsky, Chairman of the Federal Maritime Commission.  Chairman Lidinsky recently launched an inquiry into how much cargo bound for U.S. markets is being diverted to Canadian and Mexican ports to avoid paying the Harbor Maintenance Tax.  Cargo sent through non-U.S. ports can be sent by rail or trucks to U.S. markets in the Midwest; sending cargo this way avoids a fee of up to $200 per container.

“Through our own policy, we’ve tilted the playing field against ourselves,” said Port of Seattle CEO Tay Yoshitani. “By leveling that field, we can protect the nearly 300,000 jobs generated by ports on the West Coast and the revenues that our communities need for economic recovery.”

Funds collected through the Harbor Maintenance Tax pay for maintenance dredging in federal waterways across the United States.  Members of the Canadian port industry use this loophole to recruit shippers, noting that goods coming through their ports can avoid the fee while still reaching lucrative US markets.

“American ports compete with the best of them in terms of service and productivity,” noted Yoshitani.  “The first step is determining how this unfair policy affects our ports and how many jobs may be lost because of it.  We thank Chairman Lidinsky for his leadership.”

For more information about how the Port of Seattle has generated jobs and economic growth for 100 years, visit www.portseattle.org.