Freight rates are likely to see limited impact when the US starts charging Chinese vessels for calling at its ports next week, as shipping firms find several ways to circumvent the punitive measures, including reshuffling their fleets.
Some 35 per cent of vessels in the global fleet of tankers, bulk carriers and container ships could be hit by the penalty imposed by the Office of the United States Trade Representative. But the impact on importers and exporters is likely to be minimal, Niels Rasmussen, chief shipping analyst at global shipping organization Bimco, wrote in a note this week.
The US is set to start charging large Chinese vessels millions of dollars when they call at American ports from Oct. 14. The plan, first announced in April, is part of President Donald Trump’s bid to rearrange global trade and push against Beijing’s rising clout, including in shipbuilding, by targeting Chinese owners or vessels that were built in China. Nearly one in every four ships currently on water was built in the country.
The global shipping industry has been racing to find workarounds to blunt the blow from USTR’s punishing port fees. Firms are reshuffling fleets to avoid having China-built ships dock in the US, which is helping dampen the impact on freight rates, said Rasmussen.
Shipowners and charterers have begun reviewing leasing contracts to clarify which party should be the one paying the port fees. They’ve also started unwinding leasing arrangements with Chinese entities and coming up with new ways to transfer ownership of vessels.
All that has helped some shipping lines retain their pricing structures. Major container liners such as A. P. Moller-Maersk A/S and CMA CGM SA have committed to not levying surcharges on their services due to the US port fees.