The proposed levy on Chinese ships calling at US ports could trigger moves to switch out Chinese built ships from US trades that would cause widespread disruptions over the coming months. Chinese carriers would be most affected by the levies and their potential exodus would create a void in the market as they account for 17% of US container imports from the Far East. These uncertainties add to the current challenges that carriers are facing, with freight rates continuing to slide and carriers unable to maintain capacity discipline in the midst the roll-out of new Alliance services.
Forward schedules show capacity increases across the board in March and unless carriers reverse course soon, freight rate hikes will continue to prove elusive.
Johnson Leung
US levies on Chinese ships will benefit Taiwan and Korean carriers
The USTR has proposed punitive levies for ships calling at US ports on Chinese shipping companies as well as other companies operating Chinese built ships of up to $1.5m per vessel call at US ports, with an additional charge of up to $1m per call for companies with ships on order at Chinese shipyards. The proposed trade action would hit COSCO especially hard, while Taiwanese and Korean carriers would benefit from the move as only a small proportion of their fleet are Chinese built, allowing for actions to circumvent the levies.
(See page 2 for full fleet breakdown for all main carriers & page 3 for breakdown of ships currently calling at US ports)
Register Free Trial
Weekly/Monthly Market Pulse: US$1,500/US$1,800 per year