The U.S. Trade Representative (USTR) has announced a comprehensive plan aimed at curbing China’s dominance in the maritime sector and bolstering American shipbuilding. This initiative, developed after a year-long investigation, introduces a phased fee structure targeting Chinese vessels and operators, alongside incentives for U.S.-built ships.
Two-Phase Implementation: The plan will roll out in two phases, starting with a 180-day grace period.
Fee Structure: Fees will be imposed on Chinese vessels based on net tonnage, starting at $50 per ton and increasing annually.
Exemptions: U.S.-owned vessels and certain smaller vessels will be exempt from fees.
LNG Sector Focus: Phase two will require a portion of U.S. LNG exports to use U.S.-built vessels by 2028.
Tariffs on Equipment: Proposed tariffs of up to 100% on ship-to-shore cranes from China.
Overview of the New Measures
The USTR’s announcement comes as part of a strategic response to China’s growing influence in maritime logistics and shipbuilding. Ambassador Jamieson Greer emphasized the importance of maintaining American economic security and ensuring the free flow of commerce. The measures are designed to disincentivize the use of Chinese shipping and promote U.S. shipbuilding.
Phase One Details
The first phase of the plan includes a 180-day grace period during which no fees will be charged. After this period, the following fees will be implemented:
Chinese Vessel Owners and Operators:
Vehicle Carriers: A phased service fee will target foreign-built vehicle carriers, starting at $150 per Car Equivalent Unit (CEU) after the grace period.
Exemptions: U.S.-owned vessels, smaller vessels, and certain specialized export vessels will be exempt from these fees.
Phase Two Focus
Phase two will specifically address the Liquefied Natural Gas (LNG) sector. Starting April 17, 2028, a portion of U.S. LNG exports will be required to use U.S.-built vessels, with a gradual phase-in period of 22 years to allow the industry to adapt.
Proposed Tariffs on Equipment
In addition to the fee structure, the USTR has proposed imposing tariffs of up to 100% on ship-to-shore cranes manufactured in China. This move aims to mitigate vulnerabilities in U.S. port operations, as China currently dominates global production of these critical pieces of equipment.
Conclusion
The USTR’s new measures represent a significant shift in U.S. trade policy towards China, particularly in the maritime sector. By implementing these fees and tariffs, the U.S. aims to protect its economic interests and encourage domestic shipbuilding. Stakeholders in the maritime industry are encouraged to prepare for the upcoming changes and participate in the public comment period to voice their opinions on the proposed actions.
