US’ port-fee proposals targeting China make waves in shipping sector
If US wants to ‘increase costs for US importers and make US exports uncompetitive, this proposal is likely to do the job’, warns maritime consultancy CEO
Tensions between the world’s two largest economies escalated at the weekend as China slammed a “self-damaging” proposal by the Office of the US Trade Representative (USTR) to impose steep port fees on Chinese-built vessels and related operators, a move that industry insiders warn could disrupt global shipping and hurt US trade instead.
Lars Jensen, CEO of maritime consultancy Vespucci Maritime, said he was “somewhat speechless” at the proposal.
“If the intention is to drastically increase costs for US importers and make US exports uncompetitive, this proposal is likely to do the job,” he said in an online post.
The USTR’s most powerful measure targets a broad group of operators – anyone could face a new US port fee determined by the percentage of Chinese-built vessels in its fleet, up to US$1.5 million per US port call.
The proposal also targets China-based vessel operators, such as Cosco, which could be charged up to US$1 million per US port call.
The US measures will not only fail to revitalise its shipbuilding industry but will also raise shipping costs on related routes
The USTR’s action even puts Chinese shipyards’ newbuilding orders in the crosshairs, by proposing port fees on any operators with ships built at Chinese yards that are ordered or expected to be delivered “within the next 24 months”.
Operators with more than 50 per cent of their newbuilding orders at Chinese yards will face up to US$1 million port fee per US port call, while those with a smaller percentage will incur fees up to US$750,000 per call.
A statement from China’s Ministry of Commerce on Sunday called Washington’s proposed measures “self-damaging”, adding that China was closely monitoring US actions and would “take necessary measures”.