The U.S. Trade Representative (USTR) has proposed fees on Chinese-built vessels entering U.S. ports. The plan includes fees up to $1.5 million per port call for Chinese-built ships and $1 million for operators of these vessels. Public comments are open until March 24, after which a decision will be made.
Most ocean-going ships would pay the maximum port fee given their net tonnages, according to analysis by Jeffries. The investment bank noted that container shipping would be the hardest hit since these vessels make multiple port calls.
A $1.5million fee applied to an average 10,000 TEU ship calling in the U.S. would add $150 per TEU or $300 per FEU. Jefferies cited the China-Los Angeles route as an example, where rates could rise from $3,000 to $3,300 per FEU. Meanwhile, Dutch bank ING warned of ripple effects on supply chains, investor confidence, and global trade. There would be increased uncertainty as businesses struggle with unreliable arrivals, potential new disruptions, and rising costs.
China controls two-thirds of the global shipbuilding market, while the U.S. holds 1%. The previous administration had engaged with Korean and Japanese shipbuilders to revive American shipbuilding but the current administration is taking a tougher stance, imposing a 10% tariff on Chinese imports.
A Hartland Shipping report says making “credible forecasts” of supply-demand balances is now nearly impossible, given ongoing geopolitical and economic shifts.
Source: splash247.com
