China’s Port Fee Retaliation Lands Lightly on U.S. Carriers

By Alison Koo (The Loadstar) – The impact of Chinese port fees on US-owned and operated ships has proved milder than expected.

Linerlytica said in its report today that, although Beijing widened the fees to ships owned or operated by companies that are at least 25% owned by US citizens from 14 October, there has been no fallout.

Gemini partners Maersk and Hapag-Lloyd diverted two of their US-flagged ships on the transpacific TP7/WC5 service to avoid the port fees, and only US liner operator Matson’s ships have been hit by the retaliation against the US Trade Representative’s fees on Chinese-built, owned and operated vessels calling at US ports.

And Linerlytica noted that US-flagged vessels operated by CMA CGM’s US subsidiary, APL, were exempt as the French line is building many vessels in China.

Linerlytica said: “The situation remains fluid with the final determination of the ownership threshold still to be announced.”

But these disruptions saw transpacific freight rates rising sharply: on Friday, the Shanghai Containerised Freight Index recorded a 32% jump (from 10 October) in Shanghai-US West Coast prices to $1,936 per 40ft and Shanghai-US East Coast gained 16%, to $2,853 per 40ft.

The analyst added: “Further momentum is expected next week as carriers take advantage of the surge in bookings ahead of a potential tariff hike on Chinese imports.”

Meanwhile, US President Donald Trump is threatening an additional 100% tariff on Chinese imports from 1 November in response to China restricting its rare earth exports, and Linerlytica noted that operators were pushing ahead with a general rate increase on 1 November to bring rates to the USWC to $3,000 per 40ft, but there may insufficient cargo support to sustain any hike.

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