The US Trade Representative’s proposed fee structure targeting Chinese-built vessels could create significant imbalances in the competition among major liner operators serving US ports. This proposal suggests imposing fees of up to $1.5 million for each port entry of ships constructed in China, raising concerns over its potential impact on global shipping dynamics.

While the effects of this fee structure may not be felt equally by all carriers, it is expected to have a particularly harsh impact on certain operators. Alphaliner states that Companies like ZIM and CMA CGM, which rely heavily on Chinese-built ships, would face disproportionate costs compared to others that predominantly use vessels from different countries.

Alphaliner examined the potential consequences of these fees by analysing port calls made by container ships over 1,000 TEU at the top 20 US ports in February. In total, 1,002 port calls were made, with 190 involving ships built in China, accounting for 19% of all calls. These 190 calls were made by 488 distinct vessels. Despite China’s dominant position as a global maritime force, the study revealed that the majority of ships calling at US ports were built in South Korea, accounting for 54.5% of the total. China ranked second with 20.9%, followed by Japan with 12.3%.

The impact of the proposed fees would vary significantly depending on the carrier’s fleet composition. For instance, Evergreen made 53 calls to US ports in February, none of which involved Chinese-built vessels. Similarly, HMM, with just 15 calls, exclusively deployed ships built in South Korea. Yang Ming, with 23 calls, had only one ship – the YM Truth, a 12,726 TEU vessel – built in China, specifically by Yangzijiang Shipbuilding.

The proposed fees, aimed at curbing China’s influence in the maritime industry, risk upsetting the delicate balance in global shipping. Carriers that do not rely on Chinese-built vessels may be less affected, but the decision could disproportionately burden those who do, creating unfair competition in one of the most vital sectors of global trade.