Short sea routes and smaller vessels are expected to be exempt from the Trump Administration’s proposed shipping fees, which were feared would mean increases in the cost of essentials such as food and medicine imported to the island from the United States.

The news was welcomed by politicians and the board chairman of a shipping company.

David Burt, the Premier, said that the outcome was a result of engagement with the United States and work with Caricom.

A Federal Register notice posted by the Office of the US Trade Representative on Thursday provided the latest action and proposed action in relation to fees on the maritime transport services of Chinese operators and shipowners, as well as operators using Chinese-built vessels.

The possibility of heavy fees on fleets with Chinese-made vessels docking in US ports raised red flags last month for the Bermuda Container Line, whose Chinese-made container ship, the MV Oleander, would be significantly affected.

The USTR notice said that in response to comments about the potential for disproportionate economic impact on certain US interests or industries, vessels not subject to the scope of the fee would include smaller vessels and those engaged in short sea shipping.

A statement from the Bermuda Government highlighted that the decision confirmed routes and cargo vessels that supply the island would be covered by the exemptions.

It added: “This outcome means there is not expected to be any impact on Bermuda’s shipping operations or import costs from this new US rule.”

Mr Burt said: “This is a welcome and important outcome for Bermuda and the region, which is the result of direct engagement with the US and collaboration with Caricom.

“It shows that when we raise our collective voices through co-ordinated diplomacy, they can be heard and acted on.

“The Government is grateful for the work of our public officers, the Government of Bermuda’s Washington DC office, Government House, our Caricom partners and representatives of Bermuda’s shipping industry.

“We appreciate the responsiveness of the United States Government on this important issue and we will continue to work with them on matters of shared interest.”

The Premier added: “This decision is a positive step as the Government continues its broader work to ease the cost of living for families and the cost of doing business in Bermuda.“

John Wight, the chairman of BCL, said that not only was the latest announcement welcome news to the company, “but more broadly and more importantly to all residents of Bermuda“.

He explained: “When I presented in Washington last month on behalf of BCL it was important to advise the USTR that 90 per cent of goods that arrive in Bermuda arrive on one of Bermuda’s three container lines, with BCL’s Oleander ship being the largest of the three.

“The proposed fees by the USTR would have caused extreme disruption to Bermuda’s supply chain, whether for essentials like food and medicine or supplies of any sort that sustain Bermuda’s economy.

“The notice posted by the USTR is being reviewed by the company’s counsel but we believe this to be very good news for Bermuda.

“While Bermuda’s shipping lines took the lead on addressing this serious matter on behalf of our customers and our island’s residents, Bermuda’s many stakeholders both resident in Bermuda and abroad worked tremendously hard for this positive outcome that we believe Bermuda has achieved.”

Michael Fahy, the Shadow Minister of Home Affairs, and Douglas DeCouto, the Shadow Minister of Finance, also appreciated the news.

“When the port fees were first proposed by the Trump Administration there was immediate concern due to the massive costs that this would have added to an already unsustainable cost of living for all Bermudians,” Mr Fahy said.

“We are aware that many parties were involved in lobbying the US Government to roll back the proposals.

“The OBA is grateful for the advocacy of all partners in these efforts and the discussions we had with some of those partners to help all Bermudians.”

Dr DeCouto added: “We proposed that any budget surplus and sums to be realised from the corporate income tax be diverted to offsetting the proposed punitive tariffs to ensure Bermudians would not be hit.

“This idea is not taken off the table since, as we have seen with other matters emanating from the US Government, nothing is certain.

“We hope that this fund is never required but we will keep proposing helpful solutions to assist all Bermudians.”