The U.S. Trade Representative (USTR) has proposed imposing fees on Chinese-built vessels entering U.S. ports. This move is part of an ongoing investigation into China's increasing influence in the global shipbuilding and logistics sectors. According to a January 16 report, China has expanded its global shipbuilding tonnage share from 5% in 1999 to over 50% in 2023, attributed to state subsidies and preferential treatment of state-owned enterprises.
USTR's proposal includes fees of up to $1 million per vessel for Chinese maritime operators, like China Ocean Shipping Co Ltd. Non-Chinese operators with Chinese-built vessels could face fees of up to $1.5 million per port entry. Fees vary based on the percentage of Chinese-built ships in a fleet, with a maximum of $1.5 million for fleets over 50% Chinese-built, decreasing to $500,000 for fleets under 25%.
The probe, initiated in April 2024 at the request of the United Steelworkers and other unions, aims to revitalize the U.S. shipbuilding industry. USTR suggests a refund of up to $1 million per entry for U.S.-built vessels in international services.
Additionally, the proposal mandates that a portion of U.S. exports be shipped on U.S.-flagged vessels, starting at 1% and increasing to 5% over several years. After seven years, 15% of exports must be on U.S.-flagged vessels, with 5% on American-built ships. USTR also recommends restricting China's access to U.S. shipping data and potentially banning the use of LOGINK software at U.S. port terminals.
Source: Reuters