Container Shipping Quarterly
Special Report
Biting a bullet
Ports America to pay 30 % tariff on China-made ship-to-shore crane
By Peter Tirschwell
Tariffs raised the cost of the newest STS crane at Gulfport( pictured) from $ 16 million to $ 21 million. Port of Gulfport
Ports America will pay a 30 % duty on the first Chinese-built ship-to-shore( STS) container crane to be imported into the US since the so-called“ Liberation Day” tariff announcement April 2, a decision the terminal operator deemed preferable to reselling the unit or storing it in-bond in an idle state pending uncertain future changes in US tariffs on China.
The crane was built by ZPMC, which controls more than 80 % of the global market. It arrived at Gulfport, Mississippi, Sept. 11 aboard a ship carrying four additional cranes built by the company— two bound for Port Freeport, Texas, which will also be subject to the 30 % duty, and two headed to Kingston, Jamaica.
“ While not ideal, this would be in line with a replacement crane from outside China.”
The 30 % duty, a combination of a 10 % reciprocal tariff and 20 %“ fentanyl” tariff,“ made this investment narrowly possible,” Ports America CEO Matthew Leech told the Journal of Commerce. The original price tag of $ 16 million rose to just under $ 21 million.
The terminal operator has no plans to implement a direct surcharge to customers to defray the tariff costs but rather will recoup the amount over a period of time, Leech said.
The alternative would have been to unload and store the idle crane in-bond awaiting outcomes such as the US
Supreme Court’ s planned ruling on the legality of the Trump administration’ s use of the International Emergency Economic Powers Act( IEEPA) to implement tariffs or a negotiated deal that results in lower tariffs than those now in effect.
Waivers unsuccessful
Ports America, like other US ports with STS cranes on order from China, has tried unsuccessfully to obtain waivers from the White House.
In accepting delivery, Ports America took advantage of a window that allowed it to put the crane into use in advance of more unfavorable conditions down the road. The 30 % tariffs on Chinese cranes were extended Aug. 12 for another 90 days, shifting the new expiration date to Nov. 10. The tariffs would have increased to 145 % without the extension and could still rise to that level.
“ With the extension of the prior arrangement with China … we have a window to bring the crane in under a 30 % duty,” Leech said.“ While not ideal, this would be in line with a replacement crane from outside China, thus we have simply made a business decision to import the crane and recognize and pay the duty at 30 %.”
Without the extension, Ports America said it would have faced the prospect of reselling and re-exporting the crane or storing it indefinitely in-bond,“ an outcome that would have squandered valuable resources and represented a major lost opportunity to deliver real economic benefits to the Gulf Coast region and beyond,” Leech said.
“ Instead, this crane will fulfill its intended purpose: to serve as a catalyst for growth, helping the Port of Gulfport realize its full potential as a strategic gateway for global trade,” he added.
The Port of Houston proposed grandfathering Chinese-built STS cranes that were under contract and in fabrication before Dec. 31, 2024, but there is no indication such waivers have been granted.
For the moment at least, there will be no interruption to the normal US replenishment demand of 20 to 25 cranes per year on an installed base of an estimated 450 STS cranes deployed at ports in the US and US territories.
Port Freeport did not respond to a request for comment on how it will handle the tariff implications on the cranes to be delivered there.
email: peter. tirschwell @ spglobal. com
14 Journal of Commerce | October 6, 2025 www. joc. com