The tariffs on goods traveling in containers between China and the United States have now “gone to sea” following the retaliatory measures implemented by China, which raised the trade war escalation one more notch.
Last week, several ships bound for China turned back after a measure adopted by Beijing against tonnage linked to the United States. In fact, China will begin to charge an additional 400 RMB (56 dollars) per net ton to ships built, operated, flagged, or even listed in the United States.
This fee, which coincides with the US plans to charge higher port fees on Chinese tonnage, adds greater instability to the sensitive shipping industry.
Potential impact on 16% of the world fleet
Although the number of ships flagged or headquartered in the United States is not very relevant, the number of affected ships becomes significant when including companies listed on the US stock exchange.
According to the investment bank Jefferies, the most affected by this measure are:
These figures, according to the financial institution, are “high enough to generate considerable disruption in the global market”. Furthermore, the initial Chinese fees of 400 RMB are expected to increase each year until 2028, when they will reach 1120 RMB.
Condemnation of Washington’s “unilateralism”
The China Shipowners’ Association (CSA) strongly condemned the actions of the United States, describing them as violations of the WTO’s non-discrimination principles and examples of “hegemonic practices”.
The CSA described Beijing’s response as “a vital legal weapon to defend fair competition, safeguard maritime security, and maintain global trade order,” warning that Washington’s unilateralism “will only end up lifting a rock to drop it on its own feet”.
Of course, the response of the industry’s systems and procedures is not immediate, so it is to be expected that delays will once again be at the center of the logistics scene because, on the other hand, these measures come lacking clear information, instructions, or regulations, so port authorities will have no choice but to take the necessary time to process the new developments.
Last-minute adjustments in the US
As China announced its fees, the US administration made last-minute adjustments to its own port fee plan, revising the basis for calculating service fees for operators of foreign-built vehicle carriers (car carriers), tripling the costs.
On the other hand, it eased the restrictions that would be imposed on LNG export cargo licenses if ships not built in the United States were deployed.
The US Department of Commerce added that it will also impose 100% tariffs on gantry cranes and intermodal chassis and parts, a measure directly targeting port equipment manufactured in China.
