China will impose port fees on vessels that are owned, operated, built, or flagged by the U. S. starting on Tuesday, as a response to U. S. port fees on China-linked ships, according to China’s transport ministry. On the same day, U. S. President Donald Trump announced he would raise tariffs on Chinese exports to the U. S. to 100%, and impose export controls on critical software in retaliation for China’s restrictions on rare earth minerals.
Although there are few U. S.-built or U. S.-flagged vessels in international trade, China plans to target more ships by applying fees to companies tied to U. S. investment funds holding at least 25% of shares or board seats. Analysts noted this broad approach could impact many public shipping companies listed on U. S. stock exchanges, leading to significant consequences. Ships built in China, or those operated or owned by Chinese entities, will also incur fees upon reaching their first U. S. port.
U. S.-based shipping company Matson confirmed it would comply with the new fees from China without changing its service schedule. Other affected companies likely include CMA-CGM’s American President Lines and Zim, which reportedly have substantial U. S. investment ties. The new fees will be applicable to a fleet of 100 vessels owned by Poseidon’s Seaspan.
The Chinese port fees could also affect oil tanker operators based outside the U. S., as many are listed in the country. For instance, Scorpio Tankers, which has a significant fleet and is U. S.-listed, could face repercussions from the fees. Market analyst Erik Broekhuizen warned the fees have created uncertainty in the tanker market, with many vessels potentially disrupted. Estimates indicate that various segments of the tanker fleet will be affected, including a considerable portion of liquefied petroleum gas-carrying super tankers.
China will charge a fee of $50 per net tonnage for vessels owned or operated by Chinese entities calling at U. S. ports. For U. S-linked vessels at Chinese ports, the port fee will start at 400 yuan ($56.13) per net metric ton, gradually increasing in subsequent years. The situation is exacerbating existing tensions between the U. S. and China, which have been escalating since September, highlighting the ongoing trade war that has already diminished Chinese imports of U. S. agricultural and energy products.
With information from Reuters