LONDON, March 6 (Reuters) - The United States is considering imposing fees for docking at U.S. ports on ships belonging to fleets with Chinese-built or Chinese-flagged vessels, as outlined in a draft executive order. The aim is to revitalize domestic shipbuilding and reduce China's influence in the global shipping industry.
The growing dominance of China at sea and the decline in U.S. naval preparedness have brought rare bipartisan agreement among U.S. lawmakers.
According to the Center for Strategic and International Studies, Chinese shipbuilders currently produce over 50% of global merchant vessel cargo capacity annually, a substantial increase from just 5% in 1999, at the expense of shipbuilders in Japan and South Korea. In contrast, U.S. shipbuilding, previously significant in the 1970s, now makes up only a fraction of the industry.
The draft executive order, dated February 27 and seen by Reuters on Thursday, proposes fees on any vessel entering a U.S. port, "regardless of where it was built or flagged, if part of a fleet that includes vessels built or flagged in the PRC (People's Republic of China)."
The administration aims to engage allies to adopt similar measures or potentially face retaliatory actions against China. Additionally, the U.S. may impose tariffs on Chinese cargo-handling equipment.
The draft document does not specify the exact fees or their calculation method but could have significant financial implications for major carriers like COSCO (China), MSC (Switzerland), Maersk (Denmark), and Evergreen Marine (Taiwan), as well as for operators of vessels transporting bulk goods, fuel, and vehicles.
The proposed changes could lead to operational adjustments by affected shipping lines, such as MSC considering reducing port visits to the U.S.
French carrier CMA CGM announced plans to expand its American President Lines fleet over the next four years from 10 vessels to 30, anticipating the impact of the potential fees on Chinese-made ships.
Overall, the draft order highlights concerns about national security and economic interests due to China's trade practices in the maritime, logistics, and shipbuilding sectors.