The Trump administration plans to impose port fees on Chinese ships in order to revive the US shipbuilding industry and challenge China’s dominance in the field. The United States Trade Representative (USTR) announced that the fees will be implemented within 180 days and will gradually increase over the coming years.
These fees will be charged based on the weight of the cargo, the number of containers, and the number of vehicles on the ships. The fees for carrying bulk cargo will be $50 per ton, while container ships will be charged based on the number of containers they carry. Fees on Chinese-built ships will start at $18 per ton or $120 per container and will also increase over the next three years. Non-US built ships carrying cars will be charged $150 per vehicle. The fees will only be applied once per voyage and not more than six times a year.
The USTR also decided not to impose fees based on the number of Chinese-built ships in a fleet or based on future orders of Chinese ships. Empty vessels arriving at US ports to carry bulk exports like coal or grain are exempt from the fees. A second phase of actions will start in three years to favour US-built ships carrying liquified natural gas (LNG), with restrictions increasing incrementally over the following 22 years.
The announcement comes at a time when global trade is already being disrupted by President Trump’s trade tariffs. Cargoes originally destined for US ports from China are being redirected to European ports, which could raise prices for US consumers. This disruption has also led to significant congestion at UK ports and increased imports from China to the UK and EU.
Logistics firm Flexport stated that both tariffs and strikes at ports in the Netherlands, Germany, and Belgium have caused congestion. The UK’s Felixstowe port is experiencing particularly severe congestion, while Rotterdam and Barcelona in Europe are also affected. If more cargo is routed to Europe, it could lead to further congestion. Shippers are seeking new markets, and there may be a surge of goods to the US to take advantage of a 90-day window for certain countries. Consumers in the US would pay for the tariffs, but European consumers would not be significantly impacted. Companies may also start redesigning their supply chains.
Source: https://www.bbc.com/news/articles/cly517p1zgqo
