The Office of the U.S. Trade Representative (USTR) has proposed significant fees on Chinese-built cargo ships entering U.S. ports, aiming to reduce China's growing control over the shipbuilding sector. In a probe initiated under President Biden, the USTR found that China's market share in shipbuilding had grown from 5% in 1999 to over 50% in 2023.
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To address this, the USTR has suggested charging port entrance fees up to $1 million for vessels owned by Chinese operators, and $1,000 per net ton of a vessel's cargo capacity. Additionally, the proposal targets non-Chinese shipping companies whose fleets are comprised of at least 50% Chinese-built vessels, with port fees ranging from $1 million to $1.5 million per entry.
Another aspect of the proposal aims to strengthen U.S. shipbuilding by requiring a percentage of U.S. exports to be transported on U.S.-built vessels. This would start at 1% in the first year and rise to 15% by the seventh year. Companies using Chinese-built ships would be eligible for a refund of up to $1 million per entry if they use U.S.-built vessels instead.
LinerLytica, a container trade blog, noted that the potential impact of these policies could lead to disruptions, particularly for Chinese carriers, which account for 17% of U.S. container imports from the Far East. Public comments on the proposals are being accepted until March 24, with a public hearing scheduled for that date.
Source: www.designerstoday.com