American ports to impose hefty fees on Chinese-built ships
The United States is increasing its efforts against China's dominance in the shipbuilding industry. Authorities plan to introduce fees of up to £1.2 million for Chinese ships docking at American ports. According to CNBC, Congress is also considering the SHIPS for America Act to revitalise the national shipbuilding sector and lessen dependence on Beijing.
The Trump administration intends to limit Chinese ships' presence in American ports significantly. Under the new policy, carriers using Chinese vessels may face fees of up to £1.2 million per ship. CNBC reports that this is part of a broader strategy aimed at reducing China's dominance in the shipbuilding industry and revitalising American ship production.
In 2024, China accounted for 81% of the global container ship market and 75% of the bulk carrier sector. Beijing's share in LPG transport increased to 48%, while in the LNG segment, it was 38%.
New regulations and potential impacts on the industry
The United States will introduce special fees on ships built in China that dock at its ports:
- Chinese operators (e.g., COSCO) will pay up to £800,000 per ship.
- Carriers with Chinese vessels in their fleet may be charged up to £1.2 million per ship.
According to the USTR report, additional restrictions might apply to companies with more than 50% of their ship orders placed in China. This would involve imposing additional fees on them.
Soren Toft, CEO of MSC – the world's largest ocean carrier – warns that the new regulations could increase global freight costs by £15 billion and raise container fees by £450-600. Carriers may reduce calls to the United States, shifting transshipments to other ports.
Plan to rebuild the American shipbuilding industry
In response to China's dominance in shipbuilding, a bipartisan initiative, the SHIPS for America Act, has emerged in Congress. The project includes:
- Tax incentives and subsidies for American shipyards.
- The goal is to increase the number of US-flagged ships by 250 vessels.
- This requires a portion of US exports to be carried on American ships, starting from 1% annually and gradually increasing to 15%.
Currently, the United States has fewer than 100 ocean-going ships, while China operates a fleet of 5,500 vessels. Senator Mark Kelly, one of the bill's authors, emphasises that the goal is not to surpass China but to reduce the gap and strengthen national security.
Problems in the American shipbuilding sector
The United States faces significant challenges in rebuilding its maritime fleet. Shipbuilding in the US is significantly more expensive, costing four times more than in China. Philly Shipyard produces container ships that are five times costlier than their Chinese counterparts.
Additionally, the cost of maintaining US-flagged ships is twice as much as those from China or South Korea. Despite these challenges, the US Congress is planning actions to restore the competitiveness of the American shipbuilding industry and reduce dependency on China.
