During a seminar held in Singapore hosted by the Association of Maritime International Commercial Interests & Expertise (AMICIE), panelists discussed the challenges of navigating geopolitical risks in international trade and shipping. 

SeaLead Singapore’s Chief Operations Officer, Chow Kitwei, was asked about the potential impact of the United States Trade Representative’s (USTR) proposal to levy tariffs up to $1.5 million on China-made ships entering U.S. ports.

Chow highlighted that the measures would have a disproportionate impact on smaller U.S. ports. While major hubs like New York, New Jersey, and Long Beach could absorb the cost, smaller ports like Jacksonville, where carriers handle smaller volumes of cargo, would face significantly higher costs per container. The financial pressures could compel carriers to rethink their service structures, possibly leading to fewer ship calls at these smaller ports.

“I think this will definitely influence the way liners structure our services. And of course with that change in structuring we will deploy different sizes or different number of ships into the U.S. trade,” Chow said. He also predicted a short term surge in trade before the tariffs take effect. In the long term, Chow expected reduced efficiency and lower overall volumes.

Source: SeaTrade Maritime