U.S. Set to Impose Fees on China-Linked Ships: A Bold Move to Rally Allies!

by Jonathan Saul

U.S. Plans to Impose Docking Fees on Chinese-Linked Vessels

LONDON, March 6 (Reuters) – The United States is set to implement docking fees at its ports for any vessel associated with fleets that include ships built in China or flying the Chinese flag. This initiative aims to encourage allied nations to adopt similar measures or face potential repercussions, as outlined in a draft executive order.

Revitalizing Domestic Shipbuilding and Countering China’s Influence

The administration under President Donald Trump is formulating this executive order as part of a strategy to rejuvenate the U.S.shipbuilding industry while simultaneously diminishing China’s influence over global maritime operations.

this concern regarding China’s expanding maritime power and the declining readiness of U.S. naval forces has garnered bipartisan support among lawmakers from both major political parties.

The Shift in Global Shipbuilding Dynamics

According to data from the Center for Strategic and International Studies, Chinese shipbuilders now account for over 50% of global merchant vessel cargo capacity produced annually, a significant increase from just 5% in 1999. This shift has largely come at the expense of Japanese and South Korean shipbuilders, while U.S. shipbuilding has seen a dramatic decline since its peak in the 1970s, now representing only a small fraction of total industry output.

Details of the Proposed Executive Order

The draft executive order dated February 27 proposes that any vessel entering U.S. ports will incur fees if it belongs to a fleet that includes ships constructed or flagged by China (PRC). Notably,this proposal does not specify an exact fee amount nor how these charges woudl be calculated.

Potential Impact on Major Shipping Companies

This plan could impose substantial financial burdens on leading container shipping companies such as COSCO from China,MSC based in Switzerland,Denmark’s Maersk Line,and Taiwan’s Evergreen Marine—along with operators transporting bulk goods