The U.S. government has proposed some major trade actions targeting China’s dominance in the maritime, logistics and shipbuilding sectors. Both the Biden and Trump administrations have been investigating this issue, and now things are heating up. The United States Trade Representative (USTR) has proposed some hefty fees on Chinese-built vessels entering U.S. ports. They’re also looking at ways to boost the use of U.S.-flagged and U.S.-built ships for our exports.
Why is this happening?
There are a few key reasons behind these proposed actions:
- Unfair Trade Practices: The USTR believes that China has been engaging in unfair practices that give them an edge in the shipbuilding industry.
- National Security: There are concerns about the decline of the U.S. shipbuilding industry and its impact on our national security.
- Revitalizing U.S. Shipbuilding: The goal is to bring more ship manufacturing back to the good ol’ U.S.A.
What are the proposed actions?
Here’s a rundown of what the USTR has proposed:
- Steep Levies on Chinese-Made Ships: These could reach up to $1.5 million per port call for non-Chinese owned carriers using Chinese-built vessels.
- Fees for Chinese-Owned Operators: Up to $1 million per vessel entrance.
- Fees Based on Fleet Composition: Fees for carriers with a large percentage of Chinese-built vessels in their fleet or future orders.
- Service Fee Remission: A refund of up to $1 million per entry of a U.S.-built vessel into a U.S. port.
- Restrictions on U.S. Exports: Gradually increasing the requirement for U.S.-flagged and U.S.-built vessels to carry U.S. goods, starting at 1% and increasing to at least 15% over seven years.
- Addressing China’s Logistics Platform (LOGINK): Measures to address this platform and negotiations with our allies.
Potential Impact on You
Now, I know what you’re thinking: “How is this going to affect my business?” Well, here’s the lowdown:
- Ocean Freight Rates: These proposed fees could lead to increased shipping costs for consumers. Shipping lines might pass these added costs along as a surcharge, potentially adding hundreds of dollars per container for cargo owners like you. Alternatively, if they can’t pass on the costs, liners might reduce services, leading to higher rates due to lower capacity.
- Ocean Ports: We could see disruptions and congestion at major U.S. ports. Ocean carriers might reduce the number of U.S. port calls to avoid the charges, which could lead to congestion at the largest ports. The World Shipping Council also predicts congestion and reduced port traffic.
- Geopolitical Issues: These actions are a significant escalation in the trade war with China. There are also concerns about the legality of the fees under international trade agreements, and the U.S. could face legal challenges from our trading partners.
What’s Next?
The International Housewares Association and the International Housewares Shippers Association, in conjunction with other groups, are actively working to ensure the current administration is aware of the potentially detrimental effects of these fees. We will continue to provide updates as more information becomes available.
In Conclusion
These proposed trade actions are a big deal, folks. While they’re aimed at leveling the playing field and boosting U.S. shipbuilding, there are potential downsides like increased costs, supply chain disruptions, and port congestion. It’s crucial to stay informed and be prepared for potential changes in the shipping landscape.
We’re all in this together, and we’ll continue to keep you updated on any new developments. Stay tuned!
Source Materials:
- “CNBC – Trump trade war targets giant China containerships coming to US ports” (CNBC)
- “Impact of USTR Fees on Container Shipping and US Economy” (USTR Impact Analysis)
- “US Port Fees Target Chinese Ships: Trade War Escalation” (DW)
- “https://ustr.gov/sites/default/files/files/Press/Releases/2025/Ships%20Proposed%20Action%20FRN.pdf” (USTR Proposed Action FRN)
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Craig Akers
Executive Director
