China hits back at US ships with additional port fees

[BEIJING] Vessels owned or operated by US firms and individuals – or those built in the US or that fly the US flag – will be charged additional port fees per voyage starting on Oct 14, China’s transport ministry said.

The fees are a counter-measure against upcoming US port fees, the ministry said on Friday (Oct 10).

Also starting on Oct 14, ships built in China – or operated or owned by Chinese entities – will need to pay a fee at their first port of call in the US. Fees could top US$1 million for a ship carrying over 10,000 containers, and could rise annually through 2028, according to analyst estimates.

Vessels owned or operated by a Chinese entity will face a flat fee of US$80 per net tonnage per voyage to the US.

The US fees on China-linked vessels, following a probe by the US Trade Representative (USTR), are part of a broader US effort to revive domestic shipbuilding and blunt China’s naval and commercial shipping power.

Over the past two decades, China has catapulted itself to the No 1 position in the shipbuilding world, with its biggest shipyards handling both commercial and military projects.

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The Chinese fees on US vessels could hurt the US less than the US fees to be heaped on the legion of Chinese ships.

Last year, Chinese shipyards built more than 1,000 commercial vessels, while the US constructed fewer than 10, according to military and industry analysts.

For US vessels berthing at Chinese ports from Oct 14, the rate shall be 400 yuan (S$72.90) per net tonne, the Chinese transport ministry said.