As China and the United States begin charging additional port fees on Tuesday, analysts warn the global shipping industry faces growing uncertainty and turmoil – though Beijing’s exemption of domestically built vessels is expected to limit the impact.
China announced retaliatory port fees last Friday and released implementation details in the first hour of Tuesday – the same day the Chinese and US measures took effect. Fees will be waived for vessels built in China and for empty vessels arriving for repairs.
Analysts note that as China is a major importer of energy and grain, its fees will mainly affect tankers and dry bulk carriers, prompting cargo owners and carriers to rethink deployments.
This could increase volatility in shipping rates over the short term, while US port fees are more likely to impact container cargo shipping, they added.
China’s port fee policy targets US-built, flagged, owned or operated vessels, as well as those owned or operated by any entity in which US individuals or businesses hold 25 per cent or more of the equity, voting rights or board seats.
If the US cancels the port fee, China’s fee will also be withdrawn “It is this latter stipulation that is the real kicker,” Roar Adland, global head of research at brokerage SSY, wrote in an online post, adding that the share of the worldwide fleet potentially ensnared by the additional fees is substantial.
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