Dole, the largest supplier of bananas to the U.S. market, has warned that banana prices could rise if the proposed port fees on Chinese ships are implemented. 

In an effort to boost the domestic shipbuilding industry, the U.S. Trade Representative's Office (USTR) has proposed charges of up to $1.5 million to Chinese ships docking in U.S. ports and $500,000 for ship operators with only one vessel in their fleet built in China or ordered from a Chinese shipyard. 

However, Jared Gale, Dole's chief legal officer and company secretary, reportedly said during a hearing on the proposal on March 26, "The U.S. fresh fruit trade would be severely impacted by this proposed fee but so would the consumer."

Bloomberg News reports that Gale said bananas are transported from the tropics on small, refrigerated vessels that make frequent trips and unload in the U.S. at multiple small and regional ports, Gale said.

Because bananas are a low-profit-margin food and cannot be grown in the U.S., he said the proposed fees would quickly—and noticeably—increase grocery store prices for U.S. consumers.

Gale indicated that Dole operates its own fleet of specialized ships, four of which were built in China, meaning these would be subject to charges. 

Another attendee at the hearing, Alejandra Castillo, CEO of the North American Export Grain Association, said it would take many years for U.S. shipbuilders to establish a fleet capable of serving exporters. In the meantime, farmers would have to reduce production, leading to billions of dollars in losses.

A common point among all speakers was that this decision would ultimately raise costs for U.S. consumers, who are already struggling with high grocery store prices. 

Related article: U.S. authorities propose charging Chinese ships up to $1.5M to enter ports