China has announced new port fees targeting American shipping companies and vessels in response to the fees previously imposed by the U.S. Trade Representative (USTR) on Chinese tonnage.
According to analyst Lars Jensen from Vespucci Maritime, this is a direct “tit-for-tat” reaction, where the Chinese rules in practice copy the American ones.
The new fees thus apply to vessels under the American flag, vessels built in the USA, vessels owned by American companies, and vessels operated by American companies
The last two criteria apply if more than 25 percent of the ownership, voting rights, or board positions in the company are US-based, writes Lars Jensen in a post on LinkedIn.
The Chinese fees come into effect simultaneously with the American ones and are levied in RMB per net ton when vessels call at Chinese ports. The levels of the fees roughly correspond to those that Chinese vessels will be subject to in the USA.
The fee is only applicable on the first port call in China on a journey with multiple port calls and a maximum of five times per year – exactly like the American rules.
Possible consequences for shipping companies
According to Lars Jensen, the fees will hit companies such as Matson, Maersk Line Limited, and APL, all of which are US-owned.
But the consequences could extend further. Lars Jensen points out that the Israeli shipping company Zim could also potentially be affected, as more than 25 percent of the company’s shares are apparently owned by American investors.
Furthermore, Seaspan could be impacted. The Canadian-based company has more than 100 container ships, which are chartered out to major shipping companies worldwide – and since the parent company Poseidon has slightly over 25 percent American ownership, the Chinese rules could also affect this fleet.
“This means that over 100 Seaspan ships now risk being subject to fees in China – on top of the American fees already applicable to their Chinese-built ships,” writes Lars Jensen.
With the new measures, the maritime dimension of the US-China trade conflict is intensified. The fees could have significant economic consequences for shipping companies operating between the world’s two largest economies and create additional pressure on freight rates and capacity in the container segment.
-emte
