The United States is preparing to impose docking fees at its ports on any ship belonging to a fleet that includes Chinese-built or Chinese-flagged vessels, according to a draft executive order, a move aimed to both revitalize U.S. shipbuilding while countering China’s dominance in global shipping and shipbuilding.
The draft order from President Donald Trump also urges allied nations to adopt similar policies or risk facing retaliatory measures from the U.S.
China’s growing control over the maritime industry has become a rare bipartisan concern in the U.S., with both Republican and Democratic lawmakers acknowledging its impact on national security and economic interests.
According to the Center for Strategic and International Studies, Chinese shipbuilders account for more than 50% of the world’s merchant vessel cargo capacity, up from 5% in 1999. The growth came at the expense of shipbuilders in Japan and South Korea, while U.S. shipbuilding, which peaked in the 1970s, has dwindled to a minimal share of global output.
The draft executive order, dated February 27 and reviewed by Reuters, proposes that port fees be applied to any vessel docking at a U.S. port if it is part of a fleet that includes ships built or flagged in China. Notably, this applies regardless of where the specific vessel in question was built or registered.
This initiative follows a proposal from the U.S. Trade Representative’s office last month, which suggested imposing fees of up to $1.5 million on Chinese-built ships entering U.S. ports. However, the draft executive order differs in that it does not specify a percentage threshold of Chinese-built vessels within a fleet before fees are applied, nor does it define the exact cost or method of calculation for these fees.
If implemented, the policy could significantly affect major global shipping companies, including China’s COSCO, Switzerland’s MSC, Denmark’s Maersk, and Taiwan’s Evergreen Marine, all of which operate a mix of ships, including those built in China, and may face increased costs when docking at U.S. ports.
MSC CEO Soren Toft has already indicated that the world’s largest container carrier might reduce visits to U.S. ports to avoid potential financial burdens from the new policy.
Beyond port fees, the draft order calls for U.S. officials to push allied nations to enact similar measures, warning that those who do not comply could face retaliatory actions. Additionally, the proposal includes tariffs on Chinese-made cargo-handling equipment, reinforcing the administration’s stance against China’s influence in global maritime trade.
“The national security and economic prosperity of the United States is further endangered by the People’s Republic of China’s unfair trade practices in the maritime, logistics, and shipbuilding sectors,” the draft order states.
France’s CMA CGM, the world’s third-largest container shipping company, responded to the proposed measures by announcing plans to expand its U.S.-flagged American President Lines fleet from 10 vessels to 30 over the next four years. The company, which partners with COSCO in a vessel-sharing alliance and counts Walmart among its key clients, has expressed concerns that the new U.S. fees on China-built ships will impact all shipping firms operating in American waters.
(Reuters + Staff)
The post Blue or Red, Both Aisles of U.S. Politics Agree on Need to Bolster Shipbuilding appeared first on Marinelink.com
