DESPITE mounting concerns over the disruptive impact of new US reciprocal tariffs on global shipping, Kingston Wharves Limited has emerged unscathed, with CEO Mark Williams revealing that strategic exemptions for short sea routes and smaller vessels have shielded the Jamaican port from any decline in container volumes, even fuelling a surge in its booming motor vehicle trans-shipment business.

Williams, speaking in an interview with the Jamaica Observer Tuesday, explained that Kingston Wharves has so far avoided the fallout from the US tariff regime because of specific carve-outs in the new rules.

“For Kingston Wharves specifically, because the USTR has made some exceptions for [shipping] lines with certain specific conditions, Kingston Wharves is not affected,” Williams said.

The USTR is the United States Trade Representative, an agency of the US Government responsible for developing and promoting US foreign trade policies.

Williams detailed that the USTR denoted vessels operating between the US and Caricom countries within 2,000 nautical miles, such as those departing Miami or Houston, as being exempted, as are vessels carrying less than 55,000 deadweight tonnes, or about 4,000 20-foot equivalent containers.

“Again, generally, vessels calling Kingston Wharves… are within that 4,000 TEUs. So we have not seen any decline in our volumes,” he added.

He pointed out that “there are certain other exceptions” that don’t necessarily apply to Kingston Wharves. “For other terminals in Kingston that have vessels larger than 4,000 TEU, then the tariff will apply,” he said, referencing the Kingston Freeport Terminal Limited (KFTL).

“I suspect that the other terminals that do more trans-shipment movement of containers, you might be seeing some changes in their volumes. And if I have to guess, it’s probably on the positive side, because they may have quite a number of containers, so you may be having some congestion,” Williams added.

KFTL did not respond in time to Business Observer inquiries about the impact of the US tariffs on shipping at its port which deals exclusively in container shipping.

But the tariffs aside, Williams said the charging of port fees of up to US$1 million for Chinese-built or flagged vessels has given it a boost in its trans-shipment business for motor vehicles while its core business remains steady.

“Thus far, we haven’t seen any material change in our container business. And as you know, Kingston does a huge business with motor cars. We have seen an uptick in our motor car business, and that we believe is a result of the tariffs in the US, where lines are bypassing the US and coming into this region, and Kingston Wharves as a major trans-shipment hub for motor cars, we’re benefiting from that, as we speak,” he said.

Williams elaborated on the new shipping patterns, stating, “What you have is that there are vessels that are circumventing the US, come to other trans-shipment hubs, like Kingston Wharves. So a vessel will take up to 4,000 cars, and they would call Kingston Wharves and then they retranship from our network to other destinations. So we’re seeing that as it applies to motor cars. As I said, given the exception with 4,000 or less TEUs, there is no change in the volume coming to Kingston.”

Kingston Wharves’ resilience comes amid broader regional unease. Caribbean leaders and business groups have warned that the new US tariffs and port fees could disrupt fragile economies and vital tourism supply chains, with the Caribbean Hotel and Tourism Association and Caricom urging Washington to exempt the region from the steepest charges. Prime Minister Andrew Holness has assured manufacturers and exporters that the Government is actively seeking clarification and negotiating to protect Jamaica’s interests, noting that “nearly 90 per cent of Jamaican exports” to the United States enter under preferential terms; however, the new US tariff regime, rooted in a broader policy of reciprocal trade balancing, has raised serious concerns about the future of these preferential arrangements”.