Fines Against Japanese Ships Begin Today

Japanese container ships pulling into the ports of Seattle, Houston and New York today faced penalties of $100,000 apiece as negotiators for the U.S. and Japan continued efforts to resolve the shipping dispute that triggered the huge fines.

But Japanese shipping executives voiced confidence Thursday that U.S. and Japanese trade officials would reach an agreement soon because of the huge stake both countries have in the bilateral trade relationship.

Dodd Fiori, a senior vice president at NYK Line in Secaucus, N.J., said his company is bracing for a $200,000 levy today, since it has vessels calling on New York and Seattle. He said the fines, which are imposed on the Japanese container ships at their first port of call in the United States, could cost NYK more than $1 million a month.

Today “will be a bad day,” he said.

Kawasaki Kisen Kaisha Ltd. also has a ship headed for Tacoma, Wash., today, and Mitsui OSK Lines Ltd.’s next arrivals are scheduled for Saturday in Houston, Sunday in Seattle and Monday in Los Angeles.

The penalties, levied by the Federal Maritime Commission, stem from complaints by U.S. shippers that their access to Japanese ports is unfairly restricted. They want the Japanese to remove those obstacles.

The penalties went into effect after the two sides were unable to reach an agreement before a deadline of 9 p.m. PDT on Wednesday.

“In view of the ongoing and extensive efforts of the parties in Japan, we feel optimistic the issues in question will be resolved shortly,” said a Mitsui spokeswoman at the company’s Concord, Calif., office.

Despite earlier threats, all three shipping lines said the U.S. penalties would not affect their prices or service. That would include not diverting shipments to non-U.S. ports or moving cargo to non-Japanese ships.

“It will be business as usual,” said a Kawasaki spokesperson in the firm’s East Coast headquarters.