U.S. ports still ponder security-related fees
The American port industry may have to impose security fees on the shipping industry to offset an insufficient federal budget for maritime security measures.
There is “casual conversation” among the ports to impose security fees, said Gary P. LaGrange, executive director and chief executive officer of the Port of New Orleans, to members of the Senate Commerce Committee Wednesday.
LaGrange said the federal budget for port security programs is woefully inadequate to meet the basic measures required of them by the Congress. For example, the Port of New Orleans has only received $8 million of about $60 million required in federal funds to pay for complete implementation of its security program. He said the federal budget levels were “like receiving a tube of toothpaste with no tooth brush.”
Some industry analysts believe port security fees are ultimately needed to get port security programs more quickly and effectively in place.
James Carafano, senior research fellow at the Heritage Foundation, told the Senate committee that the Coast Guard could conduct audits to make sure that the fees collected are used to complete security programs to “make people realize there’s a value in security.”
Carafano warned that economic losses from a terrorist attack in a major seaport would far outweigh the price the shipping industry would pay in security fees.
Still concerns remain that differing security fee assessments among the ports could lead to “port shopping” by carriers and shippers.