Mixed Strategies As Shipping Lines Prepare For USTR Fees
From October 14th, the US Trade Representative’s (USTR) 301 penalties on Chinese-built ships will come into effect, though some uncertainty still remains over how importers and exporters will be affected.
Under the new measures, Chinese carriers – registered in China or Hong Kong, but not Taiwan – will face charges of $50 per net ton for any ship calling at a US port.
Vessels constructed in China will instead incur a $120 per teu fee. A Chinese carrier deploying a Chinese-built ship will only be required to pay this one charge.
With the deadline approaching, questions remain over whether carriers will apply surcharges to recover costs.
The Gemini Cooperation has indicated it will not introduce one. Hapag-Lloyd, which operates in partnership with Maersk Line, confirmed that most of its vessels were built in South Korea and that the alliance will mitigate the impact entirely.
The Premier Alliance has been adjusting services to avoid any of their Chinese-built vessels calling at US ports, suggesting that HMM, ONE and Yang Ming are unlikely to impose surcharges, although to be confirmed.
Within the Ocean Alliance, CMA CGM has also stated it has no plans to levy a surcharge. However, two of its partners – Cosco and OOCL – remain exposed as Chinese owned carriers, regardless of where their ships are built.
Analysts suggest they could collectively face an additional $2.1bn in costs next year and their intentions regarding surcharges is unclear. The stance of MSC, the world’s largest carrier, has also yet to be fully revealed.
Overall, with several carriers looking to self-manage the exposure, the impact of the new fees may prove less severe than initially feared when officially announced in April. Atlantic Pacific will continue to monitor developments closely.
