Retaliatory Fee Proposal Targets Chinese Shipping Lines, Threatens Higher Import Costs
In a significant retaliatory measure against China, the United States is proposing hefty fees that could impose millions of dollars in additional costs on ocean container lines and other carriers calling at U.S. ports. The proposal, announced by the Office of the United States Trade Representative (USTR) and published in the Federal Register, outlines fees as high as $1.5 million per U.S. port call for ships constructed in China. Additionally, vessel operators with even a single Chinese-built ship in their fleet or on order with a Chinese shipyard would face charges of $500,000 per call.
China-based vessel operators, including Cosco, the world’s fourth-largest container line, would incur a charge of $1 million per port call. This plan is expected to reverberate through the maritime supply chain serving the world’s largest market, where major ocean carriers operate within a complex network of cooperation that includes service routes, berthing arrangements, and vessel sharing.
As a result of these new fees, carriers are likely to pass on the added costs to shippers in the form of surcharges and higher rates, which will ultimately lead to increased prices for imported goods. Currently, about 17% of the container vessels calling at U.S. ports are Chinese-made, accounting for approximately 1.29 million of the total 28.2 million TEUs.
The proposed charges represent a significant escalation in trade tensions and could have far-reaching effects on global shipping dynamics and pricing structures.
