Cosco Shipping says it will not alter its transpacific services or rates despite new US port fees targeting Chinese-built and operated vessels, reported New York's Journal of Commerce.

In a customer advisory issued Wednesday September 17, Cosco said it will "continue to serve the US market" after the US Trade Representative begins collecting fees on Chinese ships calling US ports from October 14.

The fees stem from findings that China used unfair trade practices to support its shipbuilders and carriers. Cosco received US$167 million in Chinese government subsidies last year.

While acknowledging "operational challenges," Cosco said it will not reduce ship deployment or impose surcharges, and pledged to maintain "stable capacity" and "competitive rates."

Rival carriers CMA CGM and Mediterranean Shipping Co have rotated most of their China-built ships out of US services to avoid the penalties, but Cosco, as a China-based operator, cannot do so.

Cosco and its OOCL subsidiary face a $50 per net ton fee for each vessel's first US port call, up to five times annually. The fee will rise to $140 by 2028.

By comparison, non-China domiciled carriers operating Chinese-built ships will pay $18 per net ton in the first year, increasing to US$33 by 2028.

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