27 APR 2025
The USTR fees for China-built shipping threaten a “complete destabilisation” of the ocean alliances, as the carriers with box ships exempt from the penalties attempt to insulate themselves.
According to Nick Evans business development manager at AFS Global, any shipping lines with links to China “will become unattractive” to freight forwarders who will prioritise alternatives “to bypass the heavy penalties being levied across their customer’s cargo”.
And he predicted “an influx of requests from producers to focus on operators not of Chinese origin” that, in turn, would lead to “major supply chain disruption”.
This, he warned, could cause the “complete destabilisation” of the container shipping alliances.
Indeed, Alphaliner reported today that the Chinese Cosco group would be particularly hit by the new regulations. As the world’s fourth-largest liner group, Cosco has a major presence in the Asia-US trades, with its sister company, OOCL.
“Both are members of the Ocean Alliance, with CMA CGM and Evergreen. Trump’s ‘anti-China tax’ is expected to cause a major headache for the group,” said the shipping analyst.
“The knock-on effect is the huge loss of business to shipping lines with a Chinese lineage, with alliances beginning to fall apart as shipping lines exempt from these penalties attempt to insulate themselves,” Mr Evans told The Loadstar.
According to Alphaliner, Cosco’s best mitigation strategy would rely on finding an arrangement with its alliance partners to increase its transpacific slot allocations on CMA CGM and Evergreen vessels.Otherwise, the China-based carriers’ “best chances” would be to deploy ships smaller than 4,000 teu to the US.
Alphaliner explained: “If all major carriers were equally affected by the cost increase, shipping lines might take a ‘wait and see’ approach, and just pass on the additional cost to the cargo owners and – ultimately – consumers.
“This is, however, not the case since Chinese carriers have been targeted in a way that leaves them with limited options, while others could try and move Korean- and Japanese-built tonnage to US-related services.”
Mr Evans added: “The proposed USTR fees present a frightening reality for freight forwarders like us and our customers who we work hard to advise on best service options for their freight while working to insulate them from rate increases.
“At a time when the world is under such immense financial pressure, instead of restriction, the US should be trying to focus on strengthening supply chain resilience for producers and consumers.”
He noted that over 56% of all general cargo imports and some 90% of project cargo into America traditionally arrived on China-built vessels.
The USTR 301 action announced on Thursday means that, from October, Chinese-built ships calling at US ports will be charged $18 per net vessel tonnage, or $120 per container discharged, whichever is higher. By April 2028, the charge will have risen incrementally to either $33 per net tonnage of the vessel, or $250 per container discharged.
And, from October, Chinese vessel operators must pay an additional $50 per net tonnage, regardless of where its ships were built, which will gradually increase to $140 by April 2028.