08 Apr US To Hit Chinese Ships With Hefty Port Fees
The US has proposed charging up to US$1.5 million for Chinese-built vessels entering the country’s ports, starting at $500,000 for a vessel operator whose fleet consists of even just one Chinese-built ship, or that has an existing order with a China shipyard. In addition, a charge of $1 million per call would be assessed on vessel operators based in China.
These fees signify a substantial escalation in Washington’s trade war against Beijing as they target China’s increasing dominance in the global shipbuilding, maritime and logistics sectors and has the potential to significantly impact all companies across the container shipping industry.
According to the US, China controls 95% of global shipping container construction and in 2023 had a market share of over 50% of the shipbuilding market – up from less than 5% in 1999.
In response, the US wants to charge non-Chinese maritime transport operators operating Chinese-built ships these fees, the range of which pends upon what percentage of their fleet is Chinese-built. Conversely, there is also new preference rules in the US calling for their export cargo to be transported using US-flagged and crewed ships.
Taking into consideration the fact that over half of all container ships around the globe are built in China, as well as the reality that China is a key player in vessel ownership, these additional fees would have far-reaching consequences across a multitude of sectors and countries with the costs reverberating across all levels of the supply chain.
There is widespread speculation that carriers will pass on these fees to shipping organisations in the form of surcharges and higher rates, who will then forward them via higher prices for imported goods.
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