The now-paused fees on Chinese ships docking at US ports risk making American farmers less competitive without reviving US shipbuilding, reports American Shipper.
Peter Friedmann, executive director of the Agriculture Transportation Coalition, said the US Trade Representative's fees on China-built and -owned ships raised costs for carriers such as Cosco and OOCL, which paid about US$42 million in the first week after the charges began October 14. Analysts estimated the lines could face as much as $1.5 billion in fees in 2026.
Beijing and Washington suspended the reciprocal fees for one year under a trade agreement reached after the late October meeting of US President Donald Trump and Chinese leader Xi Jinping in South Korea.
Mr Friedmann said the fees would have made US exports more expensive than competitors' shipments, hurting farmers while failing to create demand for US-built cargo vessels. He welcomed the suspension but warned against their return.
The tariffs followed a USTR investigation that found China used unfair practices to dominate shipping and shipbuilding. The Trump administration granted exemptions for empty vessels loading US agricultural exports after complaints from growers.
Exporters remain concerned about China's soybean purchases. Brazil supplied 42 million tons this year compared with 16.57 million tons from the US between January and July. Beijing pledged to buy 12 million tons in November and December but has committed to only 840,000 tons for December and January.
Mr Friedmann said shipyard modernisation through the SHIPS Act could help build competitive US vessels. Hanwha has pledged $5 billion to expand its Philadelphia yard, CMA CGM plans $20 billion in US maritime investment, and MSC has re-registered one container ship under the US flag.
https://www.shippingazette.com/news?news_id=9251100000849
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