US Port Fees on China-Bound Vessels May Shift Trade Flows, Analysts Say
18 April 2025 路 Uncategorized 路
Source: 路 https://technews.tw/2025/04/18/2603-2609-2615-benefit/
The U.S. Trade Representative (USTR) has announced a plan to impose higher port fees on ships owned or operated by China, while offering lower rates for non-Chinese operators of vessels built in China. This move aims to counter Chinese dominance over maritime shipping and promote domestic shipbuilding within the United States.
According to *The Wall Street Journal*, U.S.-bound voyages will be charged a fee based either per net tonnage or container quantity; an initial rate of $50 per net ton has been set for vessels built in China owned by Chinese operators, with annual increases expected over three years at $30 increments.
For ships constructed but not operated by the Chinese, fees are calculated as follows: initially a charge of either $18 per net ton or $120 per container, increasing annually by five dollars each subsequent year.
Analysts have noted that this revised plan lowers both criteria and costs compared to USTR鈥檚 previous announcement due to significant opposition received. The new scheme will levy fees only upon ships docking in American ports rather than charging based on a company's fleet composition.
Shipping companies can mitigate the impact through route adjustments; therefore, long-term rates for routes to America could rise as a result of these USTR fee impositions. Taiwanese shipping giants Evergreen (闀锋Ξ), Yang Ming Marine Transport Corporation (闄芥槑), and Wan Hai Lines Ltd. (钀捣)鈥攚hich currently operate no or minimal Chinese-built vessels in the US market鈥攁re anticipated to benefit from this policy.
The new plan is expected to adversely impact China Ocean Shipping Company Group while benefiting Taiwanese and South Korean shipping companies due to their smaller proportion of ships built in China. Analysts predict that operating costs for Chinese carriers using domestically manufactured fleets will rise, potentially leading to higher freight rates, supply chain disruptions, and a shift toward non-Chinese shipbuilding.
In the short term, importers may face increased expenses causing fluctuations in freight prices. However, overcapacity issues are expected to persist long-term unless demand shifts favorably towards ships built outside China.
Additionally, Trump鈥檚 90-day suspension of high tariffs has not led to immediate price hikes or capacity shortages as shippers await policy changes before making new bookings.
(Writer: Jiang Mingyan; Image Source: Port of NY & NJ)
According to *The Wall Street Journal*, U.S.-bound voyages will be charged a fee based either per net tonnage or container quantity; an initial rate of $50 per net ton has been set for vessels built in China owned by Chinese operators, with annual increases expected over three years at $30 increments.
For ships constructed but not operated by the Chinese, fees are calculated as follows: initially a charge of either $18 per net ton or $120 per container, increasing annually by five dollars each subsequent year.
Analysts have noted that this revised plan lowers both criteria and costs compared to USTR鈥檚 previous announcement due to significant opposition received. The new scheme will levy fees only upon ships docking in American ports rather than charging based on a company's fleet composition.
Shipping companies can mitigate the impact through route adjustments; therefore, long-term rates for routes to America could rise as a result of these USTR fee impositions. Taiwanese shipping giants Evergreen (闀锋Ξ), Yang Ming Marine Transport Corporation (闄芥槑), and Wan Hai Lines Ltd. (钀捣)鈥攚hich currently operate no or minimal Chinese-built vessels in the US market鈥攁re anticipated to benefit from this policy.
The new plan is expected to adversely impact China Ocean Shipping Company Group while benefiting Taiwanese and South Korean shipping companies due to their smaller proportion of ships built in China. Analysts predict that operating costs for Chinese carriers using domestically manufactured fleets will rise, potentially leading to higher freight rates, supply chain disruptions, and a shift toward non-Chinese shipbuilding.
In the short term, importers may face increased expenses causing fluctuations in freight prices. However, overcapacity issues are expected to persist long-term unless demand shifts favorably towards ships built outside China.
Additionally, Trump鈥檚 90-day suspension of high tariffs has not led to immediate price hikes or capacity shortages as shippers await policy changes before making new bookings.
(Writer: Jiang Mingyan; Image Source: Port of NY & NJ)