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U.S. ships built in China exempt from new port fees

But U.S.-built ship hit with $600,000 in fees at Ningbo.

Stuart Chirls
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Containers await handling at the Port of Shanghai.
Gemini Sparkle

Key Takeaways:

  • The U.S. and China have implemented reciprocal docking fees of approximately $50 per net ton on ships calling each other's ports, reflecting worsening trade relations.
  • China has exempted U.S.-flagged, owned, and operated ships that were built in China, as well as empty ships entering shipyards for repairs, from its new port charges.
  • Despite the new fees, maritime industry executives anticipate that a broader trade agreement between the U.S. and China could be reached soon, with leaders scheduled to meet.
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U.S. cargo ships built in China won’t have to pay new fees to dock in that country.

While the U.S. and China began collecting the reciprocal charges Tuesday, state broadcaster CCTV said American-flagged, owned, and operated ships built in China would be exempt from the fees, Reuters reported.  

The trade partners are charging vessels around $50 per net ton on each voyage calling the other’s ports, as relations have deteriorated over the past two weeks. 

Matson (NYSE: MATX) and APL, a unit of France’s CMA CGM, operate China-built ships under the U.S. flag.

At the same time, Matson’s Manukai, an 11,149-ton container ship built in Philadelphia, became the first U.S.-flag vessel to be billed — a total of more than $600,000 when it called Ningbo on Tuesday, according to Xinde Marine News of China, citing industry sources. A Matson spokesperson in an email to FreightWaves said the company does not comment on financial matters between quartely reporting. The company reports third quarter earnings Oct. 29.

China also exempted empty ships entering shipyards for repairs.

The Chinese charges also extend to vessel operators with 25% or more U.S. ownership. Bulker and tanker operators Norden, DHT, Star Bulk and 2020 Bulkers released statements clarifying their status below that threshold. 

The sentiment among maritime executives meeting at a conference in Norfolk, Va. is that the U.S. and China will come to a broad trade agreement soon, a source told FreightWaves.

President Donald Trump and Chinese leader Xi Jinping are scheduled to talk on the sidelines of a meeting of Asian trade nations late this month.

Find more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.