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New U.S. Order Targets Chinese Shipping Industry

In a recent move that could significantly impact international shipping, the U.S. government has drafted an executive order mandating that any vessels built in China or registered under its flag will incur a docking fee upon arrival in American ports. This development was first reported by Reuters and highlights a growing tension between the U.S. and China over maritime trade practices.

The draft order, which outlines a series of trade measures, also encourages U.S. allies to adopt similar fees, with warnings of potential repercussions for those who do not comply. In addition to the docking fees, the executive order proposes tariffs on Chinese cargo-handling equipment, marking a strategic effort to bolster domestic shipbuilding while diminishing China’s influence in the global maritime sector.

The U.S. administration, under President Trump, has deemed the national security of the country at risk due to what it describes as China’s “unfair trade practices” within the maritime, logistics, and shipbuilding realms. This assertion is part of a broader narrative surrounding trade inequalities that has characterized recent U.S.-China relations.

On the heels of this draft, the U.S. Trade Representative’s office suggested imposing fees that could reach as high as $1.5 million for Chinese-built ships entering U.S. ports, a decision influenced by a detailed investigation into China’s dominance over global shipping and logistics industries.

In a related announcement, President Trump praised French shipping company CMA CGM for committing to a $20 billion investment in the United States. This investment is intended to expand existing container ports and is projected to create approximately 10,000 new jobs. However, CMA CGM operates under a vessel sharing agreement with China’s COSCO, which brings about concerns that the proposed fees on Chinese-built vessels might adversely affect all companies across the shipping industry, thus complicating the business landscape further.

This order represents a significant escalation in ongoing trade tensions, potentially altering the dynamics of future shipping and international logistics. As the situation develops, stakeholders within the global shipping sector will be closely monitoring the implications of these policies.

Source
finance.yahoo.com