US, China roll out tit-for-tat port fees, threatening more turmoil at sea
Source: Latest News
China hit back last week, saying it would impose its own port fees on US-linked vessels from the same day the US fees took effect.
Analysts expect China-owned container carrier COSCO to be the most affected, shouldering nearly half of that segment’s expected US$3.2 billion cost from those fees in 2026.
Its commerce ministry on Tuesday urged the US to “rectify its erroneous practices” and pursue dialogue and consultation instead.
“If the US chooses confrontation, China will see it through to the end; if it chooses dialogue, China’s door remains open,” it said.
In a related move, Beijing also imposed sanctions on Tuesday against five US-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, which it said had “assisted and supported” a US probe into Chinese trade practices.
Hanwha said in a message to Reuters that it is aware of the announcement and is closely reviewing the potential business impact on the company. Hanwha Ocean’s shares sank nearly 6 per cent.
China also launched an investigation into how the US probe affected its shipping and shipbuilding industries.
FREIGHT FRIGHT
“This tit-for-tat symmetry locks both economies into a spiral of maritime taxation that risks distorting global freight flows,” Athens-based Xclusiv Shipbrokers Inc said in a research note.
A Shanghai-based consultant who advises global companies on trade with China said the new fees may not be very disruptive to the industry, and any rising costs probably would be captured in higher prices.
“What are we going to do? Stop shipping? Trade is already pretty disrupted with the US, but companies are finding a way,” the consultant said, asking to remain anonymous as he was not authorised to speak with the media.
The US announced last Friday a carve-out for long-term charterers of China-operated vessels carrying US ethane and LPG, deferring the port fees for them through Dec 10.
But ship-tracking company Vortexa identified 45 LPG-carrying VLGCs – 11 per cent of the total fleet – that would still be subject to China’s port fee, its Americas analyst Samantha Hartke said.
Clarksons Research said in a report that the new port fees could affect oil tankers, accounting for 15 per cent of global capacity. Jefferies analyst Omar Nokta estimated that 13 per cent of crude tankers and 11 per cent of container ships in the global fleet would be affected.
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