Impact of Proposed U.S. Shipping Restrictions on China-Linked Vessels

We want to update you on the proposed U.S. restrictions on China-linked shipping and what this could mean for global supply chains.

What’s Happening?

The U.S. government has announced plans to impose significant fees on vessels built in China or operated by Chinese companies, including:

• $1.5 million per U.S. port call for China-built vessels.
• $1 million per U.S. port call for vessels operated by Chinese companies.
• Additional tariffs on Chinese-made cargo-handling equipment (e.g., port cranes).

The U.S. is also pressuring allies such as the EU, Japan, and South Korea to adopt similar measures.

Our View on the Impact

• Short-Term Impact: At present, we do not anticipate immediate effects on contracted services, but we are closely monitoring developments.
• Potential Cost Increases:
  • If the EU or UK were to adopt similar measures (which we view as unlikely), penalties could be in the range of $500–$1,500 per port call.
  • Carriers may adjust routes to avoid penalties, potentially leading to increased costs of $1,500–$2,500 per shipment due to additional transshipment and handling.
• Global Fleet Exposure:
  • Approximately 45% of all container vessels are built in China.
  • Some carriers are already shifting vessel deployments, meaning fleet compositions on certain trade lanes may change.

Next Steps & Considerations

• The proposal is still under review, with a public hearing scheduled for March 24, 2025.
• The EU is unlikely to comply due to WTO regulations and its own economic interests.
• We are engaging with carriers and industry stakeholders to assess risk mitigation options and ensure we provide cost-effective solutions.

We will share further updates as the situation develops. If you have any questions or would like to discuss potential contingency plans, please reach out.