The latest change to the new tariffs imposed by the United States Trade Representative (Ustr) on ships of Chinese production could be fatal for Acl – Atlantic Container Lines, the US company of the Grimaldi Group of Naples.
Acl’s ships, built in China between 2015 and 2016, are con-ro of particular design with a capacity of 3,800 TEU and about 6,400 linear meters of garage, which according to the company carry – on transatlantic routes – 80% containers, 10% out-of-gauge cargo such as aircraft wings and transformers for power plants and data center machinery, and 10% rolling stock, of which only 1% consists of cars (the rest being tractors and other construction equipment).
Nevertheless, US customs (Customs and Border Protection) would have classified them as ro-ro, with the consequence that, given the recent imposition for this type of ship of a tariff based on the vessel’s net tonnage capacity rather than the number of vehicles transported, “the five ships would be charged a tariff of $1.4 million five times a year, totaling about $34 million” according to what was stated to CNBC by Andrew Abbott, CEO of Atlantic Container Line.
“Traditional Ro/Ros look like floating parking lots; we are not. Much of the cargo we carry is for both American manufacturers and for export. These customers are now terrified at the prospect of losing their main carrier for transporting those products. So there is a lot of dismay, a real shock,” Abbott said, warning that a potential exit of Acl from the market would force US exporters and importers to find a charter service that would cost more and would not provide a weekly service.
“We only have 1% of our ships with cars, yet we are being charged tariffs as if it were 100%. And moreover, we are the only company based in the United States. I thought the Ustr wanted to encourage people to stay in the United States, not drive them away. But they are simply showing us the door. If the situation remains unchanged, we will have to start seriously evaluating the possibility of re-deploying the ships differently next year. It is something we should do, even if we don’t want to. It would end a very, very long history for a company that offers a unique service that no one else offers on the Atlantic trade route.”
SIGN UP FOR THE FREE SHIPPING ITALY DAILY NEWSLETTER
SHIPPING ITALY IS ALSO ON WHATSAPP: JUST CLICK HERE TO SUBSCRIBE TO THE CHANNEL AND ALWAYS BE UPDATED
