In a significant move ahead of anticipated trade discussions, China has implemented new port fees targeting U.S.-owned vessels entering its waters. This decision arises in response to similar port fees planned by the United States for Chinese ships. Both countries are escalating their trade tensions before a scheduled meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Details of China’s Retaliatory Port Fees
The Ministry of Transport announced that U.S. vessels, regardless of ownership or flag, will incur a fee of 400 yuan (approximately $56) per net ton for each voyage to China. This fee will be applicable for a maximum of five trips per year. Starting in 2028, the charges will increase to 1,120 yuan (about $157) per net ton.
Implementation Timeline
These new fees will take effect on October 14, coinciding with the onset of U.S. port fees on Chinese ships. China’s government described the fees as “countermeasures” against what it deems “wrongful” practices by the United States. The Ministry highlighted concerns that the U.S. fees could harm China’s shipping industry’s legitimate interests.
Additions to Trade Measures
Amid escalating trade disputes, China has recently imposed additional restrictions on the export of rare earth elements and related technologies. Such measures reflect an ongoing commitment to counteract U.S. trade policies and protect its economic interests.
Comparison of U.S. and Chinese Port Fees
China’s new port fees mirror those proposed by the United States for incoming Chinese vessels. Under the U.S. plan, vessels will incur a fee of $50 per net ton, with an annual increase of $30 per ton until 2028. Each ship will also be capped at five charges per year.
Impact on Shipping Industries
The new fees are expected to have a significant impact on U.S.-owned vessels, which account for about 5% of the global fleet owned by nationality. Despite this, the U.S. holds a mere 0.1% of the commercial shipbuilding market, having constructed fewer than ten commercial ships in the previous year.
Industry Analysis
- Kun Cao, deputy chief executive at Reddal, emphasized that the fees specifically target vessels with substantial U.S. connections.
- Shipping analysts predict limited effects on trade and freight rates, as companies adapt by changing operational routes.
- However, a report from Alphaliner indicated potential costs of up to $3.2 billion for major shipping companies due to U.S. fees next year.
The evolving dynamics between the U.S. and China are set to influence global shipping patterns and trade agreements significantly, with both nations preparing to negotiate their differences at the Asia-Pacific Economic Cooperation forum later this month.
