U.S. Set to Impose Fees on China-Linked Ships: A Bold Move to Rally Allies!

by Jonathan Saul

U.S. Plans to Impose Docking Fees on Chinese-Linked Vessels

LONDON, March 6 (Reuters) – The United States is set to implement docking fees at its ports for any vessel associated with fleets that include ships built in China or flying the Chinese flag. This initiative aims to encourage allied nations to adopt similar measures or face potential repercussions, as outlined in a draft executive order.

Revitalizing Domestic Shipbuilding and Countering China’s Influence

The administration under President Donald Trump is formulating this executive order as part of a strategy to rejuvenate the U.S.shipbuilding industry while simultaneously diminishing China’s influence over global maritime operations.

this concern regarding China’s expanding maritime power and the declining readiness of U.S. naval forces has garnered bipartisan support among lawmakers from both major political parties.

The Shift in Global Shipbuilding Dynamics

According to data from the Center for Strategic and International Studies, Chinese shipbuilders now account for over 50% of global merchant vessel cargo capacity produced annually, a significant increase from just 5% in 1999. This shift has largely come at the expense of Japanese and South Korean shipbuilders, while U.S. shipbuilding has seen a dramatic decline since its peak in the 1970s, now representing only a small fraction of total industry output.

Details of the Proposed Executive Order

The draft executive order dated February 27 proposes that any vessel entering U.S. ports will incur fees if it belongs to a fleet that includes ships constructed or flagged by China (PRC). Notably,this proposal does not specify an exact fee amount nor how these charges woudl be calculated.

Potential Impact on Major Shipping Companies

This plan could impose substantial financial burdens on leading container shipping companies such as COSCO from China,MSC based in Switzerland,Denmark’s Maersk Line,and Taiwan’s Evergreen Marine—along with operators transporting bulk goods like food products and fuel.

Soren Toft, CEO of MSC stated earlier this week that their company might reduce visits to certain U.S. ports as a strategy to mitigate exposure to these new fees.

A Call for Allied Cooperation Against Retaliation Risks

The draft also encourages U.S. officials to collaborate with international allies and partners so they can implement similar policies; otherwise they may face retaliatory actions from Washington.

additonally outlined are plans for tariffs on cargo-handling equipment imported from China according to this draft document.

Navigating Trade Practices Amidst Rising Tensions

“The national security interests and economic well-being of our nation are increasingly threatened by unfair trade practices employed by China within maritime logistics,” states the draft order’s language.

A report released Wednesday highlighted intentions regarding imposing fees on imports arriving via vessels manufactured in China based on information derived from an extensive fact sheet related to this executive order initiative comprising eighteen points overall.

CMA CGM—a prominent French shipping line—announced plans thursday aimed at expanding its American president lines fleet substantially over four years—from ten vessels currently upscaled towards thirty units total.

As one of the largest container shipping firms globally—and partaking within alliances alongside companies including COSCO—it serves major retailers like Walmart among others; last week CMA CGM indicated proposed port charges affecting all shipping entities operating under similar conditions involving Chinese-built vessels.

(Reporting by Jonathan Saul; additional contributions made by Lisa Baertlein; Editing handled by Simon webb)

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