Reuters

BEIJING: &nbsp;The United States and China on Tuesday will begin charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war between the world&#39;s two largest economies.&nbsp;China said it had started to collect the special charges on US-owned, operated, built, or flagged vessels, but clarified that Chinese-built ships would be exempted from the levies.&nbsp;In details published on Tuesday by state broadcaster CCTV, China spelled out specific provisions on exemptions, which also include empty ships entering Chinese shipyards for repair.&nbsp;The China-imposed extra port fees would be collected at the first port of entry on a single voyage or for the first five voyages within a year, following an annual billing cycle beginning on April 17.&nbsp;Early this year, US President Donald Trump&#39;s administration announced plans to levy the fees on China-linked ships to loosen that country&#39;s grip on the global maritime industry and bolster US shipbuilding. An investigation during former President Joe Biden&#39;s administration concluded China uses unfair policies and practices to dominate the global maritime, logistics and shipbuilding sectors, clearing the way for those penalties.&nbsp;The US is also scheduled to begin collecting fees on October 14. Analysts expect China-owned container carrier COSCO 601919.SS to be the most affected, shouldering nearly half of that segment&#39;s expected $3.2 billion cost from those fees in 2026.&nbsp;China hit back last week, saying it would impose its own port fees on US-linked vessels from the same day. Jefferies analyst Omar Nokta noted that 13% of crude tankers and 11% of container ships in the global fleet would be affected.&nbsp;&quot;This tit-for-tat symmetry locks both economies into a spiral of maritime taxation that risks distorting global freight flows,&quot; Athens-based Xclusiv Shipbrokers Inc said in a research note.&nbsp;A Shanghai-based consultant advising global companies on trade with China noted that the new fees may not significantly disrupt the industry, and higher prices would likely offset any rising costs.&nbsp;&quot;What are we going to do? Stop shipping? Trade is already pretty disrupted with the US, but companies are finding a way,&quot; the consultant said, asking to remain anonymous as he was not authorised to speak with the media.&nbsp;In a reprisal against China for curbing exports of critical minerals, Trump on Friday threatened to impose additional 100% tariffs on goods from China and implement new export controls on &quot;any and all critical software&quot; by November 1.&nbsp;Administration officials, hours later, warned that countries voting in favor of a plan by the United Nations&#39; International Maritime Organization to reduce planet-warming greenhouse gas emissions from ocean shipping this week could face sanctions, port bans, or punitive vessel charges. China has publicly supported the IMO plan.&nbsp;&quot;The weaponisation of both trade and environmental policy signals that shipping has moved from being a neutral conduit of global commerce to a direct instrument of statecraft,&quot; Xclusiv said.&nbsp;Shares in Shanghai-listed COSCO rose more than 2% in early trading on Tuesday. The company said its board had approved a plan to buy back up to 1.5 billion yuan ($210.3 million) worth of its shares within the next three months to maintain corporate value and safeguard shareholder interest.&nbsp;The shipping firm did not immediately respond to Reuters&#39; queries about the potential impact of the port fees.&nbsp;($1 = 7.1337 Chinese yuan)

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China says it has started to collect the special charges on US-owned, operated, built, or flagged vessels, but clarifies that Chinese-built ships would be exempted from the levies.

Articles tagged with "port fee"

US, China to roll out tit-for-tat port fees, threatening more turmoil at sea

US, China to roll out tit-for-tat port fees, threatening more turmoil at sea