China’s biggest container carrier, Cosco Shipping Lines, today struck out at the revised plan by the United States Trade Representative (USTR) to charge steep fees to Chinese-built vessels docking at American ports.
“We firmly oppose the accusations and the subsequent measures,” Cosco Shipping Lines said in a statement. “Such measures not only distort fair competition and impede the normal functioning of the global shipping industry, but also threaten its stable and sustainable development. Ultimately, these actions risk undermining the security, resilience, and orderly operation of global industrial and supply chains.”
The scaled-down plan for port fees was disclosed last Thursday by the USTR following huge criticism by global shippers, U.S. port circles and maritime stakeholders to an initial proposal of fees up to $1.5 million per American port call of a Chinese-built ship. The revised plan establishes fees tied to a ship’s net tonnage or number of containers unloaded, whichever is greater.
An investigation by the USTR alleged that China had leveraged unfair trade practices to build a dominant position in global shipping and shipbuilding.
In a statement, Cosco called the accusations, “discriminatory,” adding: “As a responsible global provider of shipping and logistics services, we consistently uphold the principles of integrity, transparency, and compliance in international industry competition,” the statement said. “We remain steadfast in our commitment to supporting global trade and delivering high-quality, reliable commercial shipping and logistics solutions to our clients worldwide.”
Under the tariff actions slated to take effect on October 14, Chinese ocean shipping lines will be subject to a fee of $50 per net ton of capacity on arrival at a U.S. port. This fee is to go up to $80 after one year, rising annually before topping out at $140 in 2028. The fee will be limited to five times per each vessel.
The tonnage levy for non-Chinese carriers starts at $18 and peaks at $33. For those carriers, the per container fee begins at $120 and rises of $250 by 2028.
The levies do not apply to Chinese-built ships in U.S.-flag fleets or container vessels that have capacities of 4,000 TEUs or less.
“The US measures fully expose the unilateralist and protectionist nature of its policies,” said China’s commerce ministry. “They seriously harm the legitimate rights and interests of Chinese companies, disrupt the stability of the global supply and production chain, violate World Trade Organization rules, and undermine the rules-based multilateral trading system and international economic and trade order.”
The China Shipowners’ Association (CSA) urged the U.S. to stop all “discriminatory measures” and abide by global trade rules. It also rejected USTR’s accusations of unfair competition.
(Photo from Cosco Shipping)