An ocean carrier is crying foul after it was hit with an estimated annual tariff bill of $34 million, CNBC reported.
Atlantic Container Lane was affected by last minute changes to new port fees put in place by the Trump administration's Office of the United States Trade Representative, CNBC said.
The company transports mainly shipping containers, but also tractors, construction equipment, passenger cars, and aircraft wings.
On Tuesday, Oct. 14, Atlantic Container Line paid a $1.4 million tariff for those goods.
But the company was recently reclassified under new Section 301 program terms, which include a new fee structure for vehicle carriers.
As CNBC reported, a fee will be charged based on the vessel's net tonnage capacity instead of the number of vehicles being carried.
Shippers must also pay new port fees, which went into effect Tuesday, Oct. 21. The company, which travels a transatlantic route, is now charged five times per year per vessel.
"That's 25 vessels being charged $1.4 million a year," Andrew Abbott, CEO of Atlantic Container Line, told CNBC. "We are looking at a tariff total of $34 million a year."
Abbott says they should be classified by the majority of freight moved, instead of being penalized for transporting passenger cars, which make up only a very small percentage of its fleet.
If the company has to continue shelling out for tariffs, Abbott said they might have to relocate operations.
"A lot of the freight we bring in is going to American manufacturers as well as for export," Abbott said to CNBC. "They're terrified that they're now going to lose their main carrier for bringing that product in.
"So, there's a lot of shaking of heads, and what I'll call just shock," Abbott said.
Abbott said if Atlantic Container Line left the market, it would force importers and exporters to find a charter service that would cost more money and not provide a weekly service.
Abbott said clients are "incredulous" about the new tariff costs being passed on.
A statement from Office of the United States Trade Representative to CNBC suggested no change in the application of the program rules and fees is currently being considered.
Sam Barron ✉
Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.
© 2025 Newsmax. All rights reserved.