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US PORT FEES TO HAVE MINIMAL IMPACT ON TRANSPACIFIC NICHE CARRIERS
May 1, 2025

The U.S. port fees on Chinese vessels, set to take effect in October, are expected to have minimal impact on niche vessel operators along the Transpacific route.

 

Sea-Intelligence, in its latest report, analysed the impact of the revised proposal by the US Trade Representative (USTR) to penalise Chinese shipping lines and non-Chinese shipping lines operating vessels built in China. 

 

It looked specifically at small independent niche carriers on the Transpacific, as the global carriers might have a larger exposure to this proposal, but their extensive and diverse fleet of vessels gives them a greater degree of flexibility to substitute Chinese-built vessels across their networks.

 

The Danish maritime consultancy company analyzed the impact on American shipping line Matson, South Korean SM Line, Taiwan-based TS Lines, and Chinese Hede Shipping and Swire.

 

"The new USTR proposal will impact 1 vessel operated by Matson, and 1 operated by SM Line, representing 10% and 9% of their 2025-Q1 deployment on the Transpacific, and only 4% of the total vessels deployed on the Transpacific by the niche carriers in 2025-Q1," Alan Murphy, CEO, Sea-Intelligence, said.

 

He noted that presumably, both niche carriers would be able to replace their 1 vessel with one not built in China or alternatively, spread the USTR fee for the 1 vessel across their fleet. 

 

"However, Hede Shipping is a Chinese carrier and subject to a separate fee simply for being a Chinese shipping line, and they are not eligible for the exemptions for vessels below 4,000 TEU," the Sea-Intelligence chief, said. 

 

"This means that if the proposal goes ahead, from October 2025, Hede Shipping will on average face a fee of US$667,000 per voyage to the US, increasing to a fee of US$1.9 million per voyage in April 2028, when the fee is fully phased in."

 

Murphy concluded that "effectively, this would likely result in Hede Shipping having to cease operations on the Transpacific into the US."

 
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