Spotlight
Scaled-back USTR port fees target China
The US Trade Representative( USTR) has narrowed the scope of its tariffs against China’ s maritime industry to a fee based on the cargo capacity or container volume of Chinese-operated and-built ships entering US ports. The actions announced on April 17 allow industry warnings that earlier proposals would increase costs for US shippers and pose an existential threat to smaller ports, but China-based ocean carriers could still face millions in fees. Chinese ocean carriers will be subject to a $ 50 fee per net ton of capacity upon arrival at a US port, which will go up to $ 80 after one year, rising each year before topping out at $ 140 in 2028. The fee will only be charged at the first port of call on a vessel string without stacking on top of other port calls and only five times per year on each vessel. Ocean carriers based outside of China operating Chinese-built ships will face a fee based on either net tonnage or container volume, whichever is higher. Ships built in other countries will not face the same fees, nor will fees be assessed based on the percentage of Chinese-built ships in a carrier’ s fleet or orders at Chinese shipyards. The goal of the fees is“ to further disincentivize use of Chinese shipping services,” the USTR said.
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IMO reaches landmark net-zero deal
The compromise framework agreement that emerged from the International Maritime Organization’ s( IMO) climate talks in London— despite deep divisions from member states— has been hailed as a decisive step forward for the decarbonization of shipping. Even though no universal carbon levy was agreed to at the IMO’ s 83rd Maritime Environment Protection Committee( MEPC), shipping’ s global carbon emissions will carry progressively increasing charges for the first time. The meeting quickly exposed deep divisions between member states over a universal levy on carbon emissions, with the US refusing to attend and even threatening retaliatory measures against any state imposing carbon fees on its ships. An agreement was finally reached on the compromise framework that places specific reduction targets on fuel intensity in container shipping and will result in financial penalties for non-compliance. A key standard in the new regulation will be the fuel intensity used by global shipping, measured on a well-to-wake basis that covers the full lifecycle of the fuel. Starting in 2028, ships must lower their fuel intensity by a certain percentage compared with the baseline set in 2008. Reduction targets will increase every year, with expectations of a 65 % reduction in carbon intensity by 2040.
EU wary of wave of diverted Chinese goods
The European Commission is closely monitoring containerized imports from China amid growing fears that the high US tariffs will force a redirection of trans-Pacific trade flows and flood Europe with Chinese goods. While there is no evidence yet of increasing volume from China above seasonal norms, the commission is taking no chances and has deployed an“ Import Surveillance Task Force” to track any irregular changes in trade. With the door to US trade effectively slammed shut, Chinese manufacturers are urgently looking for alternative markets in which to offload their surplus inventory. Europe’ s huge consumer base is an attractive target, and the European Commission is shoring up its defenses against any incoming wave of cheap Chinese products that could displace European-made goods. The concerns of the European Commission might be valid. According to Sea- Intelligence Maritime Analysis, carriers have announced an all-time high in capacity sailing out of Asia toward North Europe in April, beating the record set in early March of 2021, with very limited capacity blanked. Another potential issue is that any surge in Chinese imports will quickly exacerbate the severe port congestion that is still causing delays across the major North Europe and Mediterranean gateways.
Gemini reliability leads industry
The Gemini Cooperation of Maersk and Hapag-Lloyd is close to delivering on its public promise of 90 %-plus schedule reliability since launching Feb. 1, eclipsing the ontime performance of rival alliances
8 Journal of Commerce | May 5, 2025 www. joc. com